Posted by Dr. Craig Whisler CA NV on October 09, 2003 at 16:14:23:
…comparing economies. The prices of Mobiles are about 2-3 times higher in Alaska as in the lower 48. The shortage of housing in Alaska may be more severe than you imagine. Controlling costs is the critical factor in any business. Some folks do it well and others can’t do it at all. Usually the ones with the most imagination and creativity do best.
I’ll stand pat on my original post.
Regards, doc
Mobile homes in Alaska - Posted by K.H.
Posted by K.H. on October 09, 2003 at 13:27:11:
Hi there,
I’ve just recently begun investigating this path on mobile home investing. I do have a few questions however. Maybe I can tell you what the market up here is like, and then maybe any suggestions could be posted. I live up in Alaska, and the “junker” mobile homes go from 20K(single) to 45K(double). A newer,nicer single MH can go for 50K to 75K. There are 5 MH parks for a population of 35,000. THe housing market is very tight here as well as the rental market. Many 2bedrooms MH can be rented for $850-1000 a month (junker or not). One of the ideas I had even before I found this site, was possibly buying homes in Washington (major foreclosures) where you can buy a $24K double-wide 1998-2000 model and bring it up. Cost to freight it up is about $11k, set up I don’t know about. Pretty big investment,but this home would sell fast for $60K. nOt sure sure though. Seems there are too many ifs. One of them being the parks are full. Where would I put these new homes? Any thoughts on this idea or any other suggestions. Would greatly appreciate any thoughts. I’m new at this and am exploring different options.
Re: Mobile homes in Alaska - Posted by Chris L
Posted by Chris L on October 10, 2003 at 13:42:48:
Fantastic Idea! I grew up in Anchorage. A friend just sold a junky double wide in Wasilla, AK down a 5 mile gravel road on a small lot for $97K. I can’t get that return on my park in Portland. Hmmm… Need any help or $$? By the way, I appreciate Dr. Craigs post - make sense.
Chris
This is the opportunity of 100 lifetimes. - Posted by Dr. Craig Whisler CA NV
Posted by Dr. Craig Whisler CA NV on October 09, 2003 at 15:23:05:
I believe that the first 10 people who make a business of moving Washington State foreclosures to Alaska will all QUICKLY become millionaires.
KH has the best idea I’ve ever seen on this board. Congratulations and thanks for sharing this with us.
I even saw a motel just outside of Fairbanks made entirely from mobile homes, back during the late 50’s. It’s probably still there today. Two of my cousins followed Johnny Horton’s advice and went north to Alaska while in their twenties. They both were beginning real estate investors. They both became millionaires while still in their twenties. The same opportunities are STILL there today. Nothing new under the sun.
There are many free mobiles along the Alaska (Alcan) hiway. All you gotta do is run a steel cable 2,000 feet down the hillside and pull them back up and rehab them???. Note don’t tote, wobbly boxes on snow. Many folks tried. Many folks died. Chilling results I’d say. Hiway markers along the Alcan hiway marking where each of hundreds of people died, bring safety to the forefront of your mind.
I would start with single-wides because I suspect that the lower towing costs will results in a much higher % of profits. I bet 14 wides would be great. In fact I bet your toter can’t even reach Fairbanks or Anchorage without having a half a dozen motoritsts honking frantically and flagging the driver down with cash offers for your 14 wides. Think I’m kidding? No, not this time.
Check first, but I’m sure they would be welcomed with opened arms on private land, everywhere in Alaska, what with the housing shortage 'n all. Its the same shortage that I noticed back in 1959 and STILL unfilled. Investors haven’t changed either. They haven’t found this opportunity, and never will. They are all still looking for an EASY way to get rich quick. Oh, well, you just can’t reach some folks. Remember my old post when I mentioned that a friend had seen a big warning sticker on baby strollers, that said Caution: Remove child before folding? Well, I think we are talking about some of the same folks that that warning was indended for. :~0
How to get rich? Find a need and fill it. Henry J. Kaiser— Kaiser Steel, Kaiser Aluminum, Kaiser Cement, Kaiser Hospitals, Kaiser Automobies, (well you can’t win them all) :~0.
Moving mobile homes is an absolutly PERFECT opportunity to become a millionaire because of the difficulty, time, cost, and distance to move them. That is precisely WHY there is STILL a shortage of housing there, even after 43 years. Funny how hard work discourages competition. Most people are too lazy and set in their ways to take advantage of REAL opportunities. Remember what we were discussing recently concerning doing the same things over and over again but hoping for different results? We called it insanity, didn’t we.
Folks don’t look for an easy opportunity. Look for a hard one, with good profits, then you won’t have any competition. When there is a crying need and no competition in filling it, guess who makes the rules and sets the prices? Talk about being in the catbird seat! The Humane Society will probalbly be watching you if you do this.
Maybe I should mention that you need to look for snow load roofs, extra insulation and double windows on the mobiles you take up North and check with the Alaska building codes BEFORE you buy and move one up there to be sure it will comply with local codes. If other people have done I bet you can too.
There should be a sticker hidden in the master bedroom closet or someother equally clever place, to tell you what climate zone the mobile has been manufactured for.
I just happen to know of other similar situations that are currently making SEVERAL millionaires, but I have been sworn to secrecy, due to having inside information.
KH you’ve got the hottest play in the game. GO FOR IT, post haste.
Don’t worry about the competition. 10,000 people may read this board but I’ll be surprised if even one other person jumps on this opportunity to get rich quick. Yes such opportunities DO exist. Its takers, that often don’t exist. Everyone wants to be rich but few are willing to work for it.
Ok, all you go-getters, its time to change hats. This is the second, almost, instant, millionaire-making idea to appear on this board today.
Don’t forget where to fax the big Macs.
Regards, doc
Costs money - Posted by Eddie-Mi
Posted by Eddie-Mi on October 09, 2003 at 15:46:57:
I own a 32 space park in a climate like Alaska and where the rental market is red hot (lack of rental housing in the area).
Here is the problem: I cant get the park full because it costs MONEY (and lots of it) to buy and move in units. Plenty of opportunity around but it costs money to do anything.
Sometimes it takes money to make money. - Posted by Dr. Craig whisler CA NV
Posted by Dr. Craig whisler CA NV on October 10, 2003 at 16:23:53:
Lemme see if I’ve got this right, Eddie.
You own a park with vacancies.
The market in your area is red hot.
AND
Right?
Well if you haven’t been able to solve YOUR problem then you aren’t ready to tackle THIS one.
Regards, doc
Re: Costs money - Posted by Tony-VA/NC
Posted by Tony-VA/NC on October 09, 2003 at 20:01:51:
Eddie,
You are experiencing what many Lonnie investors have wondered and capitalized on. The park owner appears to step over investment opportunity by allowing homes to be bought and sold without them jumping on it.
Park owners make their money first on lots, second on tanget business such as Lonnie deals.
It is nice to have such opportunities, however cash does play a part. Turning a park around takes time and money and often that Lonnie deal just simply does not make the best use of the owner’s time and money.
Lastly, the park owner has other investments to consdider. The opportunity cost of forgoing say, a land/home package that would cost the investor say…$5,000 cash (leveraging the rest), vs. putting that money into a Lonnie deal.
Add to that thought the idea that empty lots take precedence as they produce no income. Lost Lonnie deals may well produce income via an investor or private sale.
So the owner is stuck with these decisions.
Fill empty lots …somehow, anyhow. He or she cannot expect private parties or dealers to do that for them.
Lonnie deal investments on homes that come up for sale or are abandoned. Time and money are involved in the turn-around of either.
Lost opportunity. The same money used on a Lonnie deal could be used to acquire a Land/Home package that will produce a long term income stream, equity build up, depreciation for tax purposes etc.
Seeing the deal from the other side of the table yields quite a different perspective does it not?
Tony