MH Deals in California - Posted by Mitchell CA
Posted by Mitchell CA on October 12, 2003 at 18:10:38:
I am new to used mobile home investing and after reading Lonnie’s first book, I am doing my homework and gathering as much information as possible regarding the market in my area. I currently live in Northern California, San Leandro to be precise and I have been reading posts from the CREonline forums (did a search on “california”) and have also visited a few parks in my area and talked to a few sellers and park managers: basically I am getting a feel for the market and getting my feet wet.
I still have a lot more scouting and probing to do, but I do have a couple of questions that I would like to clarify and also confirm some of the thoughts and ideas that I have gathered in the past few weeks.
One thing that seems to be a common question on the forum is whether or not Lonnie Deals are possible in California… no need to answer that one… I already know that the answer is YES!!!
My question is mostly regarding the wholesale pricing of used mobile homes in the area. As Lonnie mentions in his book, the wholesale prices of MHs might need some adjustment depending on the market conditions of a particular area. So my question is, based on your experience purchasing used MHs in Northern CA - Bay Area, what price range should I aim for in negociating a MH deal, for a typical single wide, 12x60, 20 - 30 years old MH?
Second question, can you provide me with the contact information of the people in AZ that you used to deal with, that would purchase used MHs from your for cash? What is their selection criteria for these used mobile homes?
Next question, should I be concerned about buying very old MHs? say 30 to 40 years old? Many MHP around here have such MHs and I found a few deals for MHs in that age group. Any special considerations when dealing with such MHs? Laws, regulations etc… (I should do my HWK, I know.)
Next question, (for now), I noticed your post about moving MHs to Alaska for tremendous profits… but why move MHs all the way to Alaska, when you can do so right here in CA? Buy a MH for cheap ($3000-$4000) in another area of CA or another state and move it to the Bay Area where they are selling for 3 to 4 times its value? I have heard of some possible issues: cost of setup (earthquake regulations), transportation, MHP being full, MHP not accepting older MHs (heck, start your own MHP)…
What is your opinion about this whole idea?
Finally, once I’ve bought my first few MHs with the money I have saved up ($17,000), I will need to sell my notes in order to keep on buying more and keep on building wealth. Can you recommend a good book on notes and financing in general.
Thank you in advance for your WISE response. I, and I am sure the entire CRE community, really appreciate your time and dedication to this forum, helping other achieve financial independence and freedom.
PS: I also posted this on the forum, for all to see your replies and gain the knowledge from your insight.