I’m in the middle of reading DOW and Lonnie does stay to be weary of parks with a bad rep. Before I got the book, I found one park that had TONS of for sale signs (should have tipped me off) and I called one owner and boy did she talk! Pays to listen! She told me that they had major problem with the well running into the septic and it was in the newspaper a few years ago. They have cleaned up the problem but most of the people in the park buy bottled water. I also found out that the rent is too high $350 mo. It’s a good idea to really know the repuation of the park.
Thanks to all of you for all the postings I scour every day. It means alot to see a good group of people come together to educate a mobile home “new-born” such as myself. I have read DOW several times and it has repeatedly lead me to a park that has quite a few abandoned trailers…(some single and a few double) anyway I know that I can get them for practically nothing ($500-$1000 each) and they can stay at the park but the park is kind of run down with quite a few vacant lots (20%). I have the motivation and the skills to repair the problems and I’m thinking that I can do some landscaping to add curb appeal but Lonnie says to go after motivated sellers…not junky trailers. I have yet to purchase my first and am very excited but very nervous. Has anyone been here? Is it worth while to purchase junky trailers? Thanx in advance to you all again. Whether or not this deal pans out I hope to finally put some faces to the names at the next convention in Atlanta.
The real money in junk is in wholesaling it off to pull out buyers. Most of the time it is not cost-effective to try to make money rehabing them the way you do with single family houses. One exception might be very new but trashed mobiles. Those you would fix up. You can usually buy a nicer coach (a repo) for less than your purchase price plus rehab costs.
I’ve done two “junky” trailers, actually I think junk would be a compliment for what kind of shape they were in…however, if you have the time, skills and motivation you can make money on these…not nearly as much as you can on nicer homes that you pay more for, but you can do it. I got a lot of business from both of them, both buying and selling just because I was in the neighborhood with a sign in the window…
If you have any questions on how to go about cleaning them up let me know, I’ve gained a lot of on the job training in the last 5 months cleaning up trailers.
Now having said that, I don’t think I’m going to do the major rehabs anymore…I just can’t make the same returns on them as I can with nicer homes that I pay a little more for and put in a lot less work…
Re: Money in Junky trailers??? - Posted by ScottS(NC)
Posted by ScottS(NC) on July 18, 2003 at 08:07:59:
Brian,
You must know your market in order to know whether these homes fixed up will sell. Is this area a slum i.e. scarry place to be at night? Would a family move there? How is the PM/owner to work with? If you think all of these questions can be addresed with positive responses then I would say work out a deal with the PM/owner to let you have free lot rent until it sells. Tell them as each sells you will purchase the next one and help them get lot rent preforming again. Try to minimize your risk. Ask the PM for an option for 90 days for $50, you fix it up try to sell if doesn’t you can extend your option or walk away with only your fix-up costs out of pocket. Like the Realators say Location is EVERYTHING. Take Care ScottS(NC)