Posted by Rosetta Chatman on October 29, 2000 at 20:57:16:
I would like to buy two double wide mobile homes that does not cost a arm and a leg.I need to know what steps to take to purchase the homes.
newcomer questions - Posted by jenn
Posted by jenn on October 25, 2000 at 15:08:32:
I am very interested in getting into real estate investing, but I feel a bit overwelmed. Is it beneficial to visit with mobile home dealers? Can they find or offer “good” deals? Every ad I respond to in the paper seems to be a mobile home dealer in disguise: “Wife left ugly husband, my loss is your gain”… And when you call the person on the other end of the line, it is the manager of a mobile home dealership. Should I try to negotiate with them?
Re: newcomer questions - Posted by JHyre in Ohio
Posted by JHyre in Ohio on October 26, 2000 at 07:01:41:
Tony’s advice is quite good, you would do well to follow it. Let me add a little:
I started in Toledo. The place is simply crawling with large, well financed dealers that are willing to sell used MH’s on paper to high-risk buyers. The place is also teeming with high-risk buyers. In short, there’s lots of competition and a lousy market. So I moved operations South 100 miles. It means some driving for me, but I found a rural town with a Honda factory that keeps things pretty prosperous. I also found three parks owned by the same company and well managed. I don’t have a monopoly, but I do have over 50% of that market for seller-financed used MH’s.
I’m not saying that I couldn’t have made it in Toledo…but why go through the hassle? Competing with dealers as a small part-time business isn’t easy. I DO occasionally buy from dealers- some of them prefer to focus on newer homes (a tough sell right now!) and do the older homes because they have to, not because they want to…so there could be opportunity through the dealers. If however, they actually like doing the older homes (I do!), I would seek greener pastures…going head to head with such outfits is not a pleasant way to start in this business.
John Hyre
Re: newcomer questions - Posted by Tony-VA
Posted by Tony-VA on October 25, 2000 at 16:02:28:
Hey Jenn,
You may be starting in a tough place to find deals. If you are looking to begin investing in “Lonnie deal” type mobile home investing, you will fare much better with park managers. They are step one. Finding a park that you believe you can market homes in that has a park manager willing to let you work in that park.
It will take some tries but eventually you will find a park that has a park manager who will listen to your ideas and your business. Once you have this rapport established, you can explain how you can help the park in many ways. (All of this is and more is explained in Lonnie’s book “Deals On Wheels”).
Most of the homes we buy are homes that have never been advertised for sale. These homes are owned by people who have become MOTIVATED SELLERS for one reason or another. We can offer a solution to their problems, while at the same time solving park problems.
The key to success is problem solving. Solve the problem and you will reap the reward. Lonnie walks you through exactly how to do this.
I highly recommend that you review his material. If you do not have it, it can be purchased at this site for about $30.
This material will keep you from making very costly mistakes. Mistakes, especially early on can be overwhelmingly frustrating. Lonnie will put you in the driver’s seat on these deals.
Ernest Tew also offers outstanding material on this topic. He takes a bit of a different approach than Lonnie. Both authors provide all the info you need to begin your investment business.
Take a look at their “How to Articles”. This may help you decide which way you wish to begin. Ultimately it will benefit you to have both courses so as to have an even greater arsenal of knowledge to solve problems with.
I don’t mean to push courses off on you and not answer your question. I simply suggest these courses as they provide the much larger amount of information you will need to safely begin investing. One post cannot possibly provide you with all the info you will need.
The good news is that both of these authors provide their material at very reasonable prices.
Best Wishes,
Tony-VA
buying unadvertised MH’s - Posted by Mike (IN)
Posted by Mike (IN) on October 26, 2000 at 08:33:49:
Hey Tony!
Can you explain in a little more detail your business plan in buying unadvertised MH’s.
YOU SAY; “Most of the homes we buy are homes that have never been advertised for sale. These homes are owned by people who have become MOTIVATED SELLERS for one reason or another. We can offer a solution to their problems, while at the same time solving park problems.”
Are you getting a list of the people not current with their lot rent from the PM?
Thanks!
Mike
I’m with Karl and JHrye here but the thing is - Posted by Dirk Roach
Posted by Dirk Roach on October 26, 2000 at 15:27:11:
it seems that so many people getting into this business will look for any excuse not to leave their office/computer. It’s like pulling teeth to get people out and get them to start some sort of rapport with the PM’s.
In my market I have seen so many people come and go. It’s sad! And the number one reason is that they have difficulty in simply talking to PM’s.
Both Karl and JHyre are absolutely correct in that why everyones wasteing Soooo much time finding the 1 or 2 deals in the newspaper, we are picking up 6 or 7 deals, that the newspaper people NEVER even know about.
Now I’m trying to get on a rant, but this just happens to irk me so much.
Anyhow folks, get out and build some good relationships, it’s called networking and that is where the money is in ANY business, even in old junky mobile homes.
Dirk
Re: buying unadvertised MH’s - Posted by Karl (OH)
Posted by Karl (OH) on October 26, 2000 at 09:42:06:
I’ll jump in here if I may.
I talk to my park manager almost everyday about what’s going on in the park. He gets calls all the time from banks trying to unload repos, residents who are thinking about selling their homes, and buyers looking for a good deal on a used home. He also knows who is behind on lot rent, who is about to be evicted from the park, and what homes are empty or abandoned and not generating lot rent. He refers most of these “problems” to me. To him these are all headaches he doesn’t want to deal with. He’s got his hands full just running this park and 3 others, along with a couple apartment buildings. He loves having one guy to go to who takes all this on, and gets it out of his hair.
Having an inside line on this information is huge. It usually means no one else is competing with me to put these deals together. I get a lot of calls from buyers and sellers responding to my ads, and I call FSBO signs I see in windows and the newspapers. But a lot of my deals, both buyers and sellers, come straight from the park office, not to mention word of mouth from residents in the park.
I imagine this is what Tony was talking about.
Karl Kleiner
Re: buying unadvertised MH’s - Posted by JHyre in Ohio
Posted by JHyre in Ohio on October 26, 2000 at 09:17:40:
At LEAST half the homes I buy are unadvertised…we’re talking no ad, even in the free papers, and no sign in the window. How these people expect to sell is beyond me. 99% of the time they either:
- Abandon the home. Park goes to court, gets title, and sells to me knowing that I’ll put the home in good condition, keep the rent up and deal with unruly buyers.
OR
- Buyers go to park, explain their problem(s) and park sends them to me, often with a recommendation as to how cheaply I can acquire the home. I buy it (or cut the occasional L/O or profit-sharing-type deal) and get the home. Word’s gotten around about what I do, so now some residents are looking to make referral fees as well.
John Hyre
DIRK, KARL, JHYRE…EXCELLENT ADVICE… - Posted by Carey_PA
Posted by Carey_PA on October 29, 2000 at 14:15:46:
I’ll tell you my biggest problem in the beginning was the park managers…I was afraid to talk to them, because I was rejected so many times by different park managers, BUT keep at it and you will find the park managers that are willing to work with you like Dirk stated.
When I found the first park manager, guess what? I used him as a reference to possibly work with other park managers and I kept doing that. THe very first park manager, would call me about bank repos and about abandoned homes he had etc. PARK MANAGERS are priceless when it comes to your business. (unfortunately, that first park manager has since left and it’s been pretty tough keeping the same rapport with the new park managers, but I’ve got other parks that I work in)
GET OUT THERE AND TALK TO PARK MANANGERS!!!
Good luck,
CAREY
Re: buying unadvertised MH’s - Posted by Rosetta Chatman
Posted by Rosetta Chatman on October 29, 2000 at 20:54:40:
I would like to buy two double wide mobile home that don’t cost a arm and a leg.I need to know what steps to take to buy the mobile homes.