Posted by DougO(NM) on February 04, 2001 at 16:22:59:
As always, depends on what you are trying to accomplish and what the homes will sell for. We are buying them right, but most have to be moved, and after setting them and getting ready for sale, end up with an average profit and markup, though it is all in the paper. Once in awhile we are able to get in and get out fast, though the numbers are just higher than the older units, and 2-3x is average I think the newer nicer homes command a bit better buyer, and since we started doing them last summer, we haven’t done much with the older homes. (this is also a function of my market, old homes can rarely stay after a resale) If for example a home books out at $20K and you have a goal of $5,000 profit per home, we’d be OK doing a deal that cost us $15K, if we could get $5k back on the down, leaving $10K in it that we can borrow from an investor using our paper as collateral. In a market that is tight on spaces, I think it’s worth more to be in the bigger nicer houses, as IF they ever come back, chances are you won’t have to move it and will get to sell it again. (Not always, but thats why, as Dirk is fond of saying, doughnuts and ref. fees were invented to be given to the PM’s!)
All in all, it’s always about what people want and how you can give it to them.
I have never done any deals with any newer Mh’s (95-98), singles and doubles, on lots.
I have a chance to pick up some at about .50 cents on the dollar, in a package deal.
Is that good enough? I so used to buying them cheap and selling them for three almost four times what I have in them.
Tell me what kind of deals are there to compare to. I believe these guys are probably flipping them to me from Conseco, which I have no problem with… I would rather pay folks to bring deals to me, a better use of my time in most cases as long as they leave some on the table.
Posted by JHyre in Ohio on February 06, 2001 at 13:26:12:
We just started buying newer homes in a really nice park…bought them for 1/3 of retail in that park. Figure on selling them for a few thousand below retail to get quick sales…should get about 2.5 times our investment or about 150% return if it took a year to sell. I’m pretty comfy with these because homes in this park sell quite fast. I’ll try the approach with my normal parks…not as nice, lower sales prices, but very cooperative managers, figure I’ll double my investment with cash sales in that park. Can then reinvest proceeds in 80’s mobile homes, paper or more cash deals, beats the hassle on the older, smaller homes.