Mobile Home Bluebook? - Posted by MCF

Posted by JHyre in OH on February 11, 2000 at 03:46:22:


Mobile Home Bluebook? - Posted by MCF

Posted by MCF on February 09, 2000 at 01:09:51:


Is there a book I can buy to get an idea what a Used Mobile is worth. I’m gettin calls on Mobiles and I have no clue how to comp them. Any Ideas?


Re: Mobile Home Bluebook? - Posted by Bill K.- FL

Posted by Bill K.- FL on February 09, 2000 at 09:23:08:

NADA puts out a book. But why bother? If it is a newer home it is just going to depreciate. I would suggest you stick to older homes that are already depreciated where the value is determined by the market and financing involved. NADA values run high anyway. I would never use them as a guide to buy.

Bluebook has it’s place! - Posted by lyal

Posted by lyal on February 09, 2000 at 13:46:43:

The blue book does come in handy to sell though. I use it when selling (a la Lonnie) to back up my price. I spent 150 bucks for the NADA software (includes quarterly updates) and I use it to print out a professional looking “estimate of value” to use when negotiating price with a buyer.
I have also just located a local banker who was willing to set up a line of credit based on the NADA book value of homes that I have sold on “CD” type notes (where I keep the titles until I’m paid in full). I have a 15K credit line (9.7%, interest only payments at 6 mos and 12 mos) on homes that I hold 20K in notes on and my total investment is 8K.

Re: Bluebook has it’s place! - Posted by Brad (TX)

Posted by Brad (TX) on February 09, 2000 at 14:40:44:

  1. Can you explain in more detail what a “CD” type note is?

  2. I’m assuming you are not a dealer (nor am I) if you keep the note in your name. Does it make any difference to the bank whether or not your a dealer? Maybe it’s to your benefit. The banks probably wouldn’t give you the loan unless the title WAS in your name. Is this correct?

  3. In Lonnie’s book he recommends against keeping the note in your name because you might held accountable as the legal owner if anything were to happen to your buyers. What’s your opinion?

Thanks for the help!

WAY TO ROCK LYAL! (nt) - Posted by David C

Posted by David C on February 09, 2000 at 14:32:32:

, , ,

Re: Bluebook has it’s place! - Posted by lyal

Posted by lyal on February 09, 2000 at 15:04:27:

Brad, CD means “Contract for Deed” (actually “Contract for Delivery of Title to a Manufactured Home”). Sometimes called a “Land Contract”, Installment Land Contract" among others. When you sell real property using a CD, its the same as owner financing but you hold the title until you’re paid in full either by the buyer’s lottery winnings (!) or they re-finance with a conventional mortgage.
With mobile homes its similar but its personal property instead (no deed, just a title like a car has). I get a down payment and sign a document (10 pages or so) with my buyer where they commit to paying the balance due over time with interest (currently I charge 12.9%). They get the title when I’m paid in full.
I am not a dealer and I keep a really low profile. I have a good relationship with local park managers and dealers (I sometimes use dealers to sell retail and pay their exhoribitant fee just to keep them on my side).
I worked hard to find this financing. Its in my Corporations name but I gave a personal guarantee (I have excellent credit). Not sure if the bank would have lent me the money simply against promissory notes. The banker was pretty casual about what to do with the titles. I still have the “open” titles I got from the sellers and have created Personal Property Trusts to hold title anonomously (thank you Bill Bronchick!).
I guess I don’t understand #3. I think you’re confusing the title with the note created for the purchase. They are 2 separate items. The title will be in my name as opposed to the buyer’s in a conventional sale where I would be listed as “lien holder” on the title. The note is held by my Corp. The buyer is required by me to keep insurance in force with me listed as “loss payee” on the policy for my protection.
I did have to repossess a home last October and it was a simple matter to move the buyer out and resell it. There was no hassle since the title was in my name.
Hope I answered your questions.
All the best,