need help with mobile home deal - Posted by Rachel Klein

Posted by Andrea on May 05, 2000 at 13:32:16:

Hi there,

Okay let me preface this by saying that I am FAR from an expert here… this is just what would seem to be common sense to me…

You need to have a handle on what payments would be including lot rent and note payment for your prospective buyer. Does that figure compare to what a person might otherwise be paying for rent for a similar size apartment?

You said you want to ‘flip’ this. Do you mean to a retail buyer? Without being certain of repair cost and market value (depending on the age of the MH, this will be dictated by either what the market will bear in the case of an older home whose ‘value’ is all but gone, or a newer home that can better relate to it’s blue book value and be refinanced by an outside source with you getting some dough for your effort).

You’ll really need to look further into the details of the note that is on it currently. The bank that financed it originally should be able to tell you what they would refi it for now and then you have to ask yourself why you would pay close to retail and take on the responsibility of paying for the note and the lot rent until you have a way to obligate someone else for that.

You don’t give any info on the MH age etc… or whether you know how much it might need in repairs, or whether you’ve spoken to the owner of the property to be certain that you can leave it on the lot (imagine having to move that addition :frowning:

Lonnie’s book has great forms in the back that will help you to ‘tie up’ the deal if it is something that you decide to do. In my mind, it would seem wiser to get to know your market a little better than solely through some ads in the paper.

Think about it carefully.
Hope this helps,

need help with mobile home deal - Posted by Rachel Klein

Posted by Rachel Klein on May 04, 2000 at 11:21:10:

Hi! I’m looking to do a deal with a mobile home here. I spoke to the seller about two months ago and he told me he was asking 45,000. He bought it 4 years ago for 55,000. He has a mortgage on it with a balance of 31,000 with monthly payments of 423.00 the lot rent is 425.00. I asked him if he would consider taking 5,000 down and I’ll take over his mortgage payments.He didn’t want to hear of it then. A few days ago he called me that he would be interested in my previous offer. I went to see it. It was ok but the bathroom looked a little old. I don’t really know what it’s worth because it is quite hard to compare to other mh in the area since it has a two room addition. Could you advise me how I can evaluate how much it’s worth and how I can make money on this home?
Thanks so much!

Re: need help with mobile home deal - Posted by Judy

Posted by Judy on May 05, 2000 at 12:53:31:


Run (do not walk) to the phone to order Lonnies books. If you can’t afford both, buy “Deals on Wheels” for now.

What you’re talking about is not a Lonnie deal and could get you into the same mess the owner is in.


Re: need help with mobile home deal - Posted by Elizabeth

Posted by Elizabeth on May 04, 2000 at 17:24:53:

Hi Rachel. Figures sound too high. Have you read Lonnie’s book. Try dealing in cheaper mobiles. $5000 tops

Re: need help with mobile home deal - Posted by rachel

Posted by rachel on May 04, 2000 at 17:33:03:

Thanks for your reply! The mh in this area are going for these kind of prices. In the 20’s , 30’s , 40’s etc. I don’t know if they have such low priced ones here.

Look before you leap! - Posted by Andrea

Posted by Andrea on May 04, 2000 at 22:17:18:

Seems to me that until you are sure that there aren’t any ‘Lonnie’ priced deals to be had in your area, you oughta be fuguring out what your market’s all about better before you jump into anything that expensive.

Just my two pennies :wink:


Re: Look before you leap! - Posted by rachel

Posted by rachel on May 05, 2000 at 09:25:20:

Thanks for your reply. Let me just explain. The fact is he paid 55,000, 4 years ago. He had it appraised then and got a mortgage on it. I saw some ads in the paper on mh and these were the prices as I had mentioned last time. I spoke to the seller and he told me that I should just take over the mortgage and i don’t have to give him anything more. How can I find out if the home is worth at least what is owed on it?
Can I talk to the mortgage co. and ask them to maybe lower the debt? Please advise me how to go about it.
Also, I’d like to flip it. How can I tie up the home so that I can show it before I buy it?

Rachel’s concerns … - Posted by William, Columbus, OH

Posted by William, Columbus, OH on May 06, 2000 at 23:18:27:

Rachel: You need to have a form to use as a guide. The form will provide the questions to ask and keep you on track in obtaining the necessary information. You would get the owner’s name, address, tele. nos, make & model, year of mfr. asking price, what paid when purchased, yr of purch., rate of interest, term of note, missed any payments?..amount of monthly payment (P&I) and insurance payment amount, no. of bdrms, baths, what’s included, etc. How did the seller arrive at his asking price? You need to ask questions about the park it’s in and what they offer for $425 month. There are more questions you can ask but this is an example. You can then telephone a number of lenders asking if they do M/H loans. When you find one tell them you are thinking about selling/buying a M/H and want to know what they would lend on it and what the book value of it is, what rate of interest they would charge and what term they would be open to (10 yrs, 15yrs, etc). If you get in your vehicle and drive around to other M/H parks and go into their offices and ask about lot rent, homes avail. for sale, prices, etc. you will begin to get a feel for the market. You can also visit a mobile home dealer (new & used) and give them the info on the unit you are considering and they will be helpful (if not too busy at the moment). Once you are aware of the value and the available financing you are then in a position to decide how you might work the deal. There are different options. Everyone on the board wants you to have all your facts so you don’t get burned.
God bless … William, Columbus, OH