I’ve called the major mobile home finance companies, and let them know that I’m interested in their wholesale repo lists. Each list usually covers the whole state, and you have to go through it to find local homes. They will either fax the list to you (if you ask really nicely), or add you to their monthly mailing list. I believe you can also contact local banks to see how they handle their mobile home repos. Some banks handle all their repos through auctions only. Good luck!
I came across a mh repo. They are asking $5800 for the home. They tell me it’s been on the market since February, but I have a strange feeling that I’ve seen it longer than that…(yes I know I know I should HAVE BEEN called, but I WAS slacking)
Anyway, how do I deal with negotiating the price of a repo?
Sorry but I don’t have any more facts about the home as far as size, bedrooms, shape, etc, but i’m going to look at it tomorrow.
Posted by Dirk Roach on March 29, 2000 at 13:58:24:
Hi Carey,
Let me first start out by saying that it was great meeting you at the convention. You are a real inspiration to us all. So often people sit around whining and here you are out selling that old sucker for cash!!! I loved it!
As far as Repo’s go, Carey let me be straight with you, yes there are retail lists, and wholesale lists and there are people that bid on them. But you know what the deals 9 times out of 10, DO NOT even make to either of those lists. The deals are gone way before that.
The Pro’s sit down to lunch with someone of decision-making ability, not a some broker or clerk who has to go up the ladder 10 places before they can make a decision. That’s where the deals are, and that’s where they get made, at the top.
Now most folks say, well I don’t have access to someone like that. The simple solution is: get access. Not a big deal really.
I have bought a ton of repo’s and I have to tell you, I don’t waste my time with bids etc. I have lunch, with someone who can yah or nay an offer, and we do the deal. And the prices are way below wholesale.
Bottom line, repo lists are simply the scraps that are left over, let the little guys/girls fight over them, because frankly they aren’t worth our time.
Remember Time is money.
I know this will help, because I can spot a winner and I must say that I see one in you.
Good luck,
Dirk
I agree with Jacob, in many ways repos can be easier. But in red tape, they are always slower. The motivation with repos is different. Emotion is not as big a factor with financial instititions as with FSBO’s.
Do some homework on this home. Knock on the neighbors doors. They can tell you more than you want to know about abandoned homes. Then check with the park manager. They usually will tell you exactly how long it has been a repo, and how much lot rent is due. Make certain the home can stay. Find out who will be responsible for the back lot rent. Include this in your bid. I have found that financial institutions are not always prompt in paying lot rent. I think they hold out for the sale of the home to reimburse the lot rent.
When you make your bid, do not be afraid to bid low. Since you won’t usually get a chance to go through your Lonnie routine of getting them to name a low all cash price, you need to bid the number you were shooting for. Bid odd numbers as well so that it looks as though you thought about this price down to the very last cent.
Put a time frame on the bid. I usually give 48-72 hours so that I don’t get shopped too much or get a call a month from now. Admittedly most of the repo’s I buy and bid on are ones that have been vacant for a long time and the park is pressuring the finance company for lot rent and no bids are coming in on the home. Some companies require 3 bids. I think this goes out the window after some point in time. Usually my bids have been accepted immediately. I recently bought two mobile homes this way. One was a 1986, the other was a 1984. I paid $500 for each. They had been sitting for months and were in need of repair. I sold them “As Is” the next day for numbers that make the calculator smoke. This all happened because I did exactly as Lonnie teaches. I did some homework, found out what the motivation level was. I found out what the finance companies might be willing to let them go for, and made a cash bid. I then spent 4 hours changing a door knob on one home. It took this long because people were lining up to look at these homes. I had only put the sign in the window ten minutes earlier. (Tax refunds are very good for our target market!)
Don’t get intimidated with finance companies. Think of it as an opportunity to deal in a strictly business deal. Make the numbers work for you. Build in holding costs and some money for clean up and fax that bid in. Remember, you are the one with the money. You don’t need to buy, but they need to sell.
Re: Sources for Mobile Home Repo - Posted by Blane (MI)
Posted by Blane (MI) on March 29, 2000 at 08:48:55:
Along with MH finance companies like Conseco, try big banks in your area. I have a repo list from Bank One, for example. A company called Greenpoint Financial has also popped up a couple times during phone calls. Also look for an office of The Associates in your area. When you talk to them, tell them you’re a dealer and ask for a key; they may have a skeleton key that will let you into all their homes. This is nice 'cause you can go in and really get a feel for how much cost and effort a MH will be (got 2 keys so far).
NOTE!!! When you go into these homes, be very careful to note the condition of the floor. Went into a home about 3 weeks ago whose flooring was totally gone all the way down the left side of the hallway. Unfortunately, I didn’t find out 'til I stepped on it. At over 6 feet and over 200lbs, I found out in a hurry. Also try to overlook the trash, you may find a home that’s structurally sound and thus a potential deal.