MH value - Posted by Stephanus

Posted by Jacob on March 21, 2000 at 11:55:09:

First off, the name “Jacob Deals” has always been intended as a joke. Maybe a bit of an inside joke. It was alyways toungue-in-cheek.

Actually, if you read what Tony wrote, I might sell some homes for more than he does. I can assure you that I usually pay more for mine, as Tony seems to have a gift for buying units at $500 or so. I also buy slightly newer units, which is one reason why I pay more on the average.

I do not provide financing on my sales, although will consider it in the future as a side investment. All of my buyer’s arrange financing through outside sources, and I get one big check upon the sale. I am then out of the deal completely.

In essence, that’s what a Jacob deal is, cashing out at the sale in order to get the cash now. Taxes are the same either way, which was one consideration I had. Another is I simply want the cash, adn this is the easiest way I know to get it. Legally, that is.


MH value - Posted by Stephanus

Posted by Stephanus on March 17, 2000 at 13:12:20:


What are the ways to find out Mobile homes values? are there links to some websites somewhere? Thanks.


Terms vs. Cash - Posted by Tony-VA

Posted by Tony-VA on March 19, 2000 at 14:04:25:

Jacob put it pretty well. This topic has been one that has run into very long arguments. I think that much was resolved a few months ago when many agreed to disagree.

Essentially what was decided that there are different investing strategies. Using a NADA value on a home that you are going to buy to sell “Lonnie Style” could be dangerous. You will likely pay too much for the home.

I feel quite certain that I sell my homes for less than NADA value, but I am more than happy with the yields created because of the purchase price. That price is determined by my ability to negotiate with a motivated seller. If the seller is not motivated, I won’t likely have a deal. But I have learned what terms my market will quickly buy for. This means that I probably could get more, and am very likely leaving somthing on the table for the other guy. Since I don’t view traditional brokers as my competetion, I am happy to sell for less and be out of the home in days or weeks instead of months.

Jacob also uses an interesting alternative means of investing in mobile homes. He does sell his homes based upon NADA values. He too makes his money by means of negotiating with motivated sellers. He knows from experience how much CASH he can sell for, how fast, and by what means.

I think that the danger comes when new investors try and combine the two techniques. They naturally want to look at a guide (appraisal) as they might have when they bought there sigle family home.

With Lonnie deals, we create the value of the home buy providing selling on TERMS. An NADA value may or may not be relevant. Some people sell for more than NADA, some like me may sell for less. Either way we make our money going into these deals when we buy.

If the first time we buy a home, we see that the NADA value is $12,000 and we follow Lonnie’s suggestion of buying for 1/2, we will likely be paying way too much for this home if we sell on Lonnie terms. On the other hand, we could be buying just right if we can sell for cash doing it Jacob’s way.

We would not likely make Lonnie Yields holding the financing on the home in this example. We would be better off finding a seller with more motivation and use lonnie’s negotiating techniques and buy for say $2500 and then selling on TERMS.

Just keep in mind, TERMS vs. CASH.

Just be sure you know which plan you are following before you buy. This is determined by what your exit plan is.

Best Wishes,


Not the whole story - Posted by Jacob

Posted by Jacob on March 19, 2000 at 10:47:34:

I agree with about 10% of what the Sheik said. He just left out a few things. MH values can vary even park to park. In fact, the park (it’s condition, amenities, etc.) are about 50% of the value.

A good way to get a feel for what units are selling for is to talk to the park manager. He/she will have a pretty good idea for what particular unit sold for.

Keep in mind that your selling price will vary depending on your strategy. Meaning, if you are planning on a traditional “Lonnie” deal, then you can probably sell it for a bit more. Dirk’s example of receiving $365 a month for an abandoned unit is a perfect example. He was able to get this because he knew the market and because of the terms on the note.

If you are looking ot cash out, a traditonal “Jacob” deal (sorry, I just couldn’t resist) then your price will be a little lower. You will need to conform to a standard appraisal, and will need to know the base NADA value of the unit. (

Contrary to what many still believe, the NADA guide is a collection of sales prices grouped by region. Dealers that are members and subscribe to the guide, send in 1 page reports on the sale of different units. That data is grouped, and then divided by region. Then, you factor in the condition of the unit and the park and arrive at a pretty accurate price.

Many times, I have sold a unit and had a pm ask “how did you get that much for the unit? We sold a unit like that last week for $2500 less.” I always reply that I had an idea for what it would appraise at, and the rest is marketing. Several times, I would have sold a unit much lower, if I hadn’t had the guide to give me a better idea.

I especially believe that it can be handy when starting out. In the beginning, you have no clue what a particular unit could sell for. After all, you have no experience to back you. But, the guide can give you a good run down of prices to get you started. I find now that I don’t even look at the guide too much anymore, because I know what I can sell a unit for. And typically, it’s more than anyone else in the park can.

Best of luck to you.

Re: MH value - Posted by Sheik

Posted by Sheik on March 17, 2000 at 14:13:37:

Much like SFH, the values of MHs are dictated by
local conditions and can vary widely.

You have to ride the bumps and learn your local market.
Never go by the ‘book’ value.


Re: Terms vs. Cash - Posted by Stephanus

Posted by Stephanus on March 21, 2000 at 01:16:31:

Thank Tony. The thing is now finding a seller that would go sell for $2500 when the market is $12000. Have you ever found these sellers in sellers market?



Excellent post! - Posted by Jacob

Posted by Jacob on March 19, 2000 at 21:44:32:

My friend, we are in total agreement. (Imagine that!)

You said what I was trying to in a different way.


Re: Not the whole story - Posted by Stephanus

Posted by Stephanus on March 21, 2000 at 01:09:49:

Thanks, same to you.
BTW what is Jacob deal? buy low sell low? or is there another trick?