New in North Carolina - Posted by Jason-NC

import · November 11, 2000, 10:13am

Posted by chris on November 13, 2000 at 12:55:47:

Thanks Fred, I understand now.

import · November 11, 2000, 10:13am

Posted by Jason-NC on November 11, 2000 at 11:13:22:

I just ordered DOW and would like to get started shortly after reading it. I have studied real estate for years, and grew up in a home where both parents were licensed. I am an accountant by profession and have a North Carolina corporation on the side that is currently inactive.

I noticed that at least one person on this board does this type of deal in North Carolina and I would like to ask about state licensure requirements. After so many deals, are we required to get a MH dealer’s license? How many deals would that be? Where in North Carolina are some of the other investors on this board?

Since my studies have been with houses, the MH world is new to me. It seems to be a completely different animal and seems to abound with opportunity. I look forward to joining the ranks of the successful investors I’ve found here.

Thanks,

Jason

import · November 11, 2000, 12:38pm

Re: New in North Carolina-FORMULA FOR SUCCESS - Posted by Fred-Ohio

Posted by Fred-Ohio on November 11, 2000 at 13:38:39:

Formula for success:

Read Lonnies books (BOTH OF THEM)

Read the want ads

Hit the parks

Meet the park mangers, get to know them, check to see that they will be supportive of your business

Put $6000/10,000 in your MH Wheel and Deal account( enough for 2/3 deals)

Line up an insurance broker who will help you insure an unoccupied MH

Through park managers, want ads, for sale by owner signs find a MOTIVATED SELLER or two

By looking at apartment rents, MH lot rent and your market conditions make a JUDGEMENT on what you can sell a MH for

Divide your selling price by two and subtract fix-up costs, 2/3 months of park rent, utility cost and insurance for 2/3 months and you have your target purchase price. MAKE SURE THAT YOU CHECK WITH THE PARK MANAGER TO BE SURE THE MH CAN STAY IN THE PARK!!

Don’t fall in love with your MOTIVATED SELLER’S MH, remember you make your money when you buy (and you collect it when you sell). Take a deep breath and negotiate a price in line with your target purchase price above. Use all of Lonnies techniques.

If the seller won’t meet your target move on to the next one

Try to find motivated sellers with MHs that don’t need a lot of fix-up to start with. Stick with minor cosmetic repairs or none at all

Make your first buy

Run owner finacing ads

Wait for the phone to ring

Have prospective buyer drive by the MH and then call you back a second time before you make an appointment to show them the inside. If you do this you will avoid getting stood-up by inconsiderate shoppers.

When you get a potential buyer ask lots of questions about his/her ABILITY AND WILLINGNESS TO PAY, GET THEM APPROVED BY THE PARK and decide if you think in your gut that they will pay you each month over the term of the purchase agreement.

If and when everything checks out YOU HAVE JUST DONE YOUR FIRST DEAL.

If you liked it, do another. If you didn’t chalk it off to part of your education and go back and do somemore accounting.

If you decide to continue change from hobby status to some sort of incorporated business status ad contine to operate as a businessman

MOST OF ALL ENJOY THE PROCESS AND LEARN SOMETHING!!

Best regards and good luck,

Fred-Ohio

import · November 12, 2000, 3:53pm

Re: New in North Carolina-FORMULA FOR SUCCESS - Posted by chris

Posted by chris on November 12, 2000 at 16:53:34:

Don’t you mean multiply your selling price?

import · November 12, 2000, 8:59am

Thanks! - Posted by Jason-NC

Posted by Jason-NC on November 12, 2000 at 09:59:58:

Thanks for the advice! Now I just need to find out about NC licensure requirements…

Jason

import · November 12, 2000, 4:14pm

Re: New in North Carolina-FORMULA FOR SUCCESS - Posted by Fred-Ohio

Posted by Fred-Ohio on November 12, 2000 at 17:14:25:

Chris:

To clarify: Determine what price your market will allow you to establish as a selling price and then divide that number in half to obtain a purchase price which will give you a 100% profit. Since you will have various expenses associated with holding and selling the MH you really want to subtract them from the half selling price figure to obtain your desired purchase price.

(Purchase price + holding and selling expenses) x2=Selling price— or—

(Selling price/2)-Holding and selling expenses = Desired Purchase Price

Hope this helps.

Fred-Ohio