MH repos - Posted by Shelly

Posted by Jacob on December 20, 1999 at 12:41:11:

I would definitely agree that finding out about those who are behind on lot rent is an excellent way to locate motivated sellers. Keep in mind that the park manager is probably not just going to givethat info to anyone off the street. You will need to build some rapport with them.
As far as mobile homes being regular RE if on their own land, that varies from state to state. That is NOT an absolute fact all over the country. In many states, it doesn’t matter if the unit is on land or not. It is still personal property, and will not show on the tax lien. Having dealt with both tax liens and mobile homes, that is the case in my state. That’s why it is important to discover how things work in your state, and not accept an absolute statement.

MH repos - Posted by Shelly

Posted by Shelly on December 19, 1999 at 18:09:17:

I read Joe Kaiser’s article about searching out motivated sellers by researching homeowners who are behind in property taxes. Does this same method work for searching out motivated sellers for Mobile Homes? I will be recieveing Lonnie Scuggs books in a few days and I am excited to start doing Lonnie deals. What other methods of searching out motivated mobile homes sellers has anyone else used?
thank you
Shelly (OR)

Re: MH repos - Posted by JHyre in Ohio

Posted by JHyre in Ohio on December 21, 1999 at 10:14:07:

I’ve bought a number of repos nice & cheap. They have upsides and downsides. Upside: The negotiations are quick- especially towards the end of the month when disposition quotas must be met. I only buy homes on the “wholesale” lists- I won’t even look at the stuff that the banks are trying to unload for retail. I’ve gotten some excellent buys this way.

Downside: Repos usually need work. Selling “as is” is difficult in Toledo, though it sometimes flies in Columbus. I’ve had repairs made on most of the repos I’ve bought. Dealing with handymen is from HELL…lots of liars and thieves out there. I’ve finally found some good people, after spending time and money on not-so-good people. So factor repairs in to your purchase price- and get good at estimating the cost of such work, unless selling “as is” works better in your market than it does in mine. Also thoroughly investigate slow-sellers…I got some repos very cheap…but have had trouble selling them because the park S*CKED. I’d’ve been better off paying to move them into a better park, in spite of the hassle involved in a move. Live and learn (though I’ve yet to actually LOSE money, in spite my mistakes…)!

All things being equal, I prefer to buy from residents, even though more work and patience (e.g.- letting them sit on an empty home and pay lot rent until they come down to an acceptable price) are involved. I still track repos because there are some excellent deals to be had IF one does the due dilligence on repairs and location.

Best of luck to you,

John Hyre

my .02 cents. - Posted by Dirk Roach

Posted by Dirk Roach on December 20, 1999 at 13:44:51:

Hi Shelly,
I feel that both Jacob and David have made some very valid points and have given you some super advice here.
In my experience if you build some reppor with not only the park managers but also with the park residence themselves you will find more than enough business to keep you busy.
The tax thing idea might work or it might be a huge waste of time. Jacob is correct that game varies from local to local. However my advice is simple, just get out into the parks and talk to people. Get them on your side. I can not tell you how many deals come to me over and over from PM’s and Park residents. I rarely actively look for deals at all anymore, they come to me. Then I just pick and choose which deal best fits my criteria that day.
Selling these homes are the easy part, finding the deals can be the more difficult of the two. But with that said, why not utilize or put into place a force that does nothing but that, find you mobile home deals. Lonnie suggests paying a referral fee, and I am with him on this. Most PM’s in my market average somewhere between 800 and 1000 dollars a month. A hundred bucks extra will get their attention.
In fact someone being interested in them, their work etc, does it some cases. But the key is to get out there and just talk to them. Phone call follow up’s can be important, but nothing does it like face to face interaction.
This method has worked for me again and again. I also budget monies aside for various things as they come up. I recently had one PM get sick and have to go into the hospital, you better believe that flowers were delivered. Also I keep a database of information on all my PM’s etc. Birthdays, etc. Now you don’t have to get extravengent at this, a simple card on a PM’s Birthday or Mothers day/Fathers day whatever will get you miles. It all really comes down to marketing (yourself) and self promotion.
Incendently look at someone like Donald Trump and more closely some of the players here, it’s all the same game.
But when Mr. and Mrs. Jones get into a bind where they are going to have to move, I want the PM of the park that they are in to think of me first and foremost, and I like to come in and solve everyone’s problem.
Also I have found when I was getting the parks in my market that I wanted to play in all set up, my reputation often times proceeded me. Word travels in the mobile home world extremely quickly. Remember these folks run into each other all the time at the courthouse, registration office etc. and they talk.
So keep your chin up, and by all means, DEVOUR Lonnie’s books. Read them again and again, because I can tell you the Man knows what he is talking about. Also continue to do what your doing, ask questions, and read everything on this site.
Good luck,

Re: MH repos - Posted by David C

Posted by David C on December 19, 1999 at 21:11:44:

Hello Shelly;

Yes, finding past due tax bills is a good way to find sellers. If the home is on its own land, it is considered regular ole’ r.e. For mh in parks, taxes are still charged and collected. Notices of tax sales can be found in whatever office is charged with collecting those taxes, typically a county court house or sherrifs office.

Second talk to park managers about whos behind in the lot rent. You’ll need to build rapport with these people, but it’s worth it. Don’t forget to post “I BUY MOBILE HOMES” notices on bulletin boards and mail box units in the park.

Good luck!

david C

Re: MH repos - Posted by Jacob

Posted by Jacob on December 19, 1999 at 19:16:40:

First off, let me say that you are definitely on the right track, as far as being able to be creative. That is an important way to stay ahead in this industry.
However, having said that let me say that your idea probably wouldn’t work quite the way you are thinking. Here’s why. First and foremost, in most states (including mine) mobile homes are considered personal property. In fact in my state, they are considered cars. Therefore, the only tax liens related to mobile homes wouldn’t show as such. Meaning, it would simply be listed as vacant land. You would have to do research on each and every piece of vacant land in order to discover one that possibly had a mobile home on it. And if it did, it would probably be abandoned. An abandoned mobile home is junk, worse than a junk car because you’d have to pay $1000+ to move it.
Secondly, in my experience MH repos from nationally based finance companies are not worth it, not like foreclosed SFH’s from a bank. Why? Because these finance companies can and do resell those repossesed MH’s for full book value. In my area at least, there really aren’t any values on repo MH’s. Certainly not older ones, which are the ones you need to do “Lonnie” type deals.
Anyway, hope all of my babbling has helped somewhat. If not, feel free to email if there is anything else I can do to help.
Good Luck!