Jay, my advice would be to: - Posted by Dirk Roach
Posted by Dirk Roach on April 25, 2000 at 18:43:37:
Learn, Learn, Learn your market, and exactly how financing these older mobile homes (Lonnie Deals) work. Which would mean, getting his books and reading and learning everything you can about financing, mobile homes, and negotiating.
I’m in Southern CA, and let me say that the average that I buy a mid 70’s single wide here is around $3k to $3.5K. That being said let me also state that in almost every instance we start the negotiating dance with them wanting $10k or $12k. And believe me the market here is hot. There are certainly no lack of buyers here in San Diego, for anything! However there is a lack of buyers with big chunks of cash to put down on a mobile home. Especially when you look into the main demographic that I focus on. which is 24 to 34 year old blue collar, b or c credit.
And I’m the only kid on the block doing these. (At least out here). So I have no competition. Couple that with a very strong and aggressive marketing program and roughly this is what happens:
I look at an average of 15 to 20 homes per week, I choose 2. I get around 75 to 125 buy calls per week. So once again I can pick and choose whom I sell to. Analyzing risk and reward. In a nut shell I can create strong notes. And then, play with those.
Now don’t get me wrong I’m not saying that this type of aggressive marketing etc. is for everyone. I think that dealing in a couple of parks, (where you have good relations with the PM’s and residents) and simply buying a couple of MH’s per month can be GREAT! Heck anything that makes you positive cashflow, and gives you a good yield is Super. In fact I would suggest starting out slow, simply because the mere organizational aspects can give you grey hair and get out of hand if you’re not careful.
The main thing is to get out there and learn your market.
In your above deal, how many comparable single wides have sold in the last three months in that particular park? Also What have they sold for? etc. etc.
What does the Park Manager (PM) think about you selling this home (carrying paper)? What is your relationship with the PM?
Anyhow get the books and get those folks down on their price. Lonnie’s “Squire Dog” Tech. works super.
Hope this helps