Posted by Karl (Oh) on March 28, 2001 at 12:39:41:
Dear Fonzie,
You say in a post above that you’re a couple chapters into Deals on Wheels. Here’s my suggestion. Stop posting until you’ve finished reading it. All of the questions you keep asking are addressed in that one little book.
Another suggestion. Use your real name, or at least make up a name that isn’t a television character, and you’ll get a better response to your questions.
Karl Tuscadero
Park Managers are the backbone of this business - Posted by Jacque - WA
Posted by Jacque - WA on March 23, 2001 at 15:07:49:
Or so I’m beginning to think…LOL
I had one call me today, this is the 7th deal in this one park. They were behind 2 months lot rent.
I drove right over and whamm…paid her $150 + made up the 2 months lot rent and am the owner of another mobile that is going right up for sale.
I would have paid more but followed Lonnie’s advice, grabbed my boyfriend to play squirrel dog and then kept my mouth shut. Keeping silent only took $150 + lot rent out of my pocket book instead of the $2500 I would have willing paid…
Folks, I went to a negotiating seminar and it came down to this simple rule: 70/30
You do 70% listening and 30% talking.
Anyway, everyone of my deals except for 1 has come from the Park Managers. They are awesome!
Jacque
Re: Park Managers are the backbone … - Posted by Floyd-OR
Posted by Floyd-OR on March 23, 2001 at 17:15:55:
Jacque,
You took ownership of a mobile home because the owner was two months behind in space rent? Amazing!
I don’t understand, here in Oregon, a person has up to 90 days to before repossession can be started, certain legal procedures must be followed, such as documents must be served on the owner, etc.
Must be a little different in WA = Washington?
Floyd
Re: Park Managers are the backbone … - Posted by Jacque - WA
Posted by Jacque - WA on March 23, 2001 at 18:43:31:
Floyd,
I didn’t repossess it - I bought it outright from owners who were in a difficult bind. I simply offered them a solution to their problem. They had a previous tenant move out on them, so no rent for the last two months. Which in turn lead to two months of not being able to pay lot rent. When you purchase from the owners there is no repossessions.
If this had been a repossession then I would have had to follow the same exact laws that you have in Oregon. I know - the 4th mobile I bought was this same Park Managers sisters mobile in Gresham, Oregon. Again, she had a problem and I had a solution. I used Lonnie’s forms straight out of his book (had them checked with a local attorney first) and took possession within an hour. Ad in the paper within another hour and sold within the week.
Floyd, forgive me for saying this but I think your trying to make this more difficult than it really is…have you read any of Lonnie’s or Ernest Tew’s books? I would definately suggest you start there.
Do a search on bigbook.com for mobile home parks, trailer courts, etc… within say 25 -50 miles where you live and trust me you will be amazed. When I was down completing this deal in Gresham I was amazed at the parks. There is business out there and it’s waiting for you Floyd, you just have to go to it and be patient. Sometimes that first deal takes a little time. But, it’s there for you.
Take care,
Jacque
Re: Park Managers are the backbone … - Posted by Tony-VA
Posted by Tony-VA on March 23, 2001 at 18:09:55:
She did not repossess it, she bought it.
This is a perfect example of a motivated seller. Here is a seller that does not want to have judgments against them for back lot, get evicted and still have lot rents acrue. Instead they bite the bullet and take a little cash to walk a way with.
Great Work Jacque!
Re: Park Managers are the backbone … - Posted by Floyd-OR
Posted by Floyd-OR on March 23, 2001 at 20:32:03:
Jacque,
Let me get this straight, basic story is a $2500+ mobile home is sold for $150 because two months past due lot rent? And the mobile was being rented to a tenant? And the owners were in a difficult bind because the mobile had been vacant for two months?
Don’t know where you are posting from, but standard park practice/policy in the Pacific Northwest is that only mobile home owners/buyers may occupy mobile homes in mobile home parks, maybe it’s different in Washington. And forgive the skepticism, but I find it difficult that a landlord would consider a two month vacancy a difficult bind.
I’ve been investigating the mobile home park business for over a year now, mainly in the Portland OR/Vancouver WA area, including areas east of Portland such as Gresham. And as I’ve posted previously, the unemployment rate in this area is low, vacancy rates are also low, especially for lower cost apartments and mobile homes. In other words, I am not seeing anyone willing to sell their multi-thousand dollar mobile home for literally pennies on the dollar in this area.
You discuss a park in Gresham, I lived for approx. 8 years between Fairview and Gresham on Oxbow Parkway, my brother still lives there, and the area is growing like crazy with employers such as Boeing, LSI, Fujitsu, etc.
I’d be very interested in stopping by the Gresham mobile home park you dealt with and visiting with the park manager to better understand the deals you “pros” are doing with such ease.
Thanks,
Floyd
Re: Park Managers are the backbone … - Posted by Floyd-OR
Posted by Floyd-OR on March 23, 2001 at 19:38:46:
Title of original post: “Park Managers are the backbone of this business”
Excerpt from post: “I had one call me today, this is the 7th deal in this one park. They were behind 2 months lot rent. I drove right over and whamm…paid her $150 + made up the 2 months lot rent and am the owner of another mobile that is going right up for sale.”
As near as I can follow, what is being discussed is park managers, one of whom called the original poster Jacque, who then drove over and paid “her” (park manager?) $150 plus 2 months past due lot rent for a mobile home.
In the above context, either the mobile home is owned by the park, and was sold for $150, or the mobile home is owned by a tenant, and was repossessed for $150, as nowhere in the original post is a transaction between Jacque and a tenant/owner discussed.
Tony-VA posted that “She (Jacque?) did not reposses it, she bought it.” OK, without getting into how Tony-VA (Virginia?) knows exactly what Jacque-WA (Washington?) is doing, I don’t see anyone claiming that a mobile home was purchased for $150 due to a tip from a park manager that one of the mobile home owners was two month behind on space rent.
And, I don’t think a park manager or owner wants the negative publicity and legal entanglements that could easily arise from a story of someone being encouraged by the park manager to sell (more like give away) their mobile home worth $2500 for $150, esp. if the owner is low income, minority, elderly, etc.
Thanks Tony, Hope your doing well (nt) - Posted by Jacque - WA
Posted by Jacque - WA on March 23, 2001 at 18:45:31:
Re: Park Managers are the backbone … - Posted by Jacque - WA
Posted by Jacque - WA on March 24, 2001 at 24:04:44:
Hi Floyd,
Well, it appears that I have somehow offended you - for that I am truely sorry that was not my intention.
Let me explain my post a little further and maybe this will shed some light.
In this particular scenario - I have developed a relationship with the Park Manager. She knows that I buy mobile homes. All the Park Manager/Owner is concerned about is getting that monthly lot rent. This Park Manger/Owner does NOT want to become a landlord or even deal with tenants. There main focus is getting that lot rent paid every month.
Anyway, the Park Manager, has a woman who lives in her park and owns 2 mobile homes. One she lives in and the other she was using as a rental.
The one that I bought from the owner was the mobile she was using as a rental. The owners renter moved out, unexpectedly, and as is typical with some of these situations, she did nothing for 2 months. This caused her lot rent to become delinquent for the last 2 months. Why would this owner find a 2 month lot rent delinquency a difficult bind? She is on a limited budget, retired, and simply doesn’t have the extra money laying around to pay both her own lot rent, mortgage and another mobiles lot rent.
Yes, she and her son were willing to sell the mobile to me for $150 because it needs some repairs. (See the squirrel dog techinque in Lonnie’s books). A window had leaked and damaged a portion of the paneling. Being vacant, a window had been broken and smashed. I won’t go into all the details but suffice it to say that these things to the average person, already under some of life’s stresses, equals a paramount undertaking and quite frankly - they didn’t have the money to take care of it plus the back lot rent. Besides which they knew they were coming up on another months lot rent on April 1, 2001. In addition to this “rental mobile” her own lot rent for her mobile coming due April 1, 2001.
The unemployment rate every where seems to be at an all time low. It is here too. I’m in Kitsap County - Bainbridge Island, Washington. Not only do we have the military near us (Bremerton) but we are only a 1/2 hour ferry commute within Boeing, Microsoft and some major shipping industry not to mention downtown Seattle. Even with all of this there are still many - many people out there who simply can not afford to take of care of themselves much less something that may seem realtively simple to some of us, like taking care of a month or two of lot rent. Look at the repossession rates - they are atonishing for any area of the U.S. and especially for the areas that appear to be thriving. There are always circumstances in people’s lives that cause them to give up a home they could have fixed up and sold themselves. Sometimes it’s money, sometimes it just being overwhelmed by it all. Sometimes it’s divorce, bankruptcy, and the list goes on…
Floyd, I am hardly a pro…I’ve only been doing this - well, next week it will be 2 months. I have been lucky with some of the bandit signs and advertising. The rest has been just visiting and revisiting the parks in my area.
Yes, there are quite a few parks around here that require the mobiles to be owned by the person occupying the home. However, all I do is find them an owner that passes there qualifications by buying the mobile and selling it to a qualified person. The park knows I’m doing this and is o.k. with it - as long as they are getting their lot rent - there happy.
Anyway, Floyd, I really meant no offense and I hope this clears it up a little bit.
Jacque
As a matter of fact… - Posted by Blane (MI)
Posted by Blane (MI) on March 24, 2001 at 19:39:49:
Tony knows exactly what Jacque is doing because it basically works the same in Washington, Virginia, Detroit or wherever. And having met Tony personally, I can guarantee that everyone who deals with him is treated with fairness, courtesy and respect. That’s what’s so great about this business. You’re not interested in selling for $500 (or $1000, or whatever)? No problem, thanks for your time! Next!!!
As far as negative publicity and legal entanglements, did any do-gooders step up with cash to help this person out? Would they? And would this “issue” really show up on the radar of some crusading Seattle TV station? Most bleeding hearts are too busy spending $500 a plate on “charity” dinners and patting themselves on the backs to actually find time to step into a MH park and mingle with po’ folks. To quote a certain unnamed corrupt, adulterous former governor of Arkansas whose wife “lives” in New York, “that dog don’t hunt.”
Blane
Not everyone thinks like you… - Posted by lyal
Posted by lyal on March 24, 2001 at 11:48:00:
Floyd, You can’t seem to get by the idea that if you don’t believe it, it can’t happen. You are a skeptic and that is good. A born “prove it to me” kinda guy myself but…that said, it happens. I just got a call from a local PM (ok actually it was 2 weeks ago but…) and he had 2 homes that the owner’s had handed him the titles for. Each of them had just bought houses and were “moving up”. Neither of them wanted to make the effort to sell their homes and just signed the titles and walked. One was a '73 that needed a little work and the other was a '76 with a nice new deck and 1 year old vinyl siding. I paid the park manager 2K for each (yes him, because he was the guy with the signed titles). I immediately sold one to my handyman guy for 2500 and am going to do some fix up to the other and resell for probably 10K cash (or 12K if I finance it). I’ll have minimal holding costs because the deal included no lot rent due until June.
Both “GOOD ENOUGH” deals.
If either of these owners had put up a for sale sign, they’d have sold them easily and pocketed the money but they just didn’t care.
The mentality of a “don’t wanter” is the biggest mystery we face…also what puts money in our pockets.
Lyal
PS: I don’t buy the “Bait and Switch” BS. That tactic is used primarily to get people into the shop and then step them up to a more expensive (and profitable) product…clearly not the intention here. You could easily make the ad more generic if you wanted to “We sell mobile homes on terms!!” or somesuch if that will make you more comfortable with the concept or…
look around for a place you can take an “Option” on for 50 bucks (yes I’ve done it but I only paid 10 bucks) and then advertise it. If no one calls, no problem and the cost will be minimal. If you can close the deal, your skepticism will be assuaged and you’ll put money in your pocket.
All the best to you, Lyal
My Extremely Long Response - Posted by Tony-VA
Posted by Tony-VA on March 23, 2001 at 23:04:00:
Hello Floyd,
It appears that you have taken my post as a personal attack and for that I am sorry. It was not so intended.
In response to your post:
“As near as I can follow, what is being discussed is park managers, one of whom called the original
poster Jacque, who then drove over and paid “her” (park manager?) $150 plus 2 months past due
lot rent for a mobile home.”
Having been in many similar scenarios as Jacque describes, I perhaps read more into the post than others, not having such an experience, would have. When Jacque said she paid $150 for the home, I knew that she meant she paid the owners of the home, not the park manager, $150 for the home.
What I was trying to point out was that this was a purchase, not a repossession.
You wrote:
“Tony-VA posted that “She (Jacque?) did not repossess it, she bought it.” OK, without getting into how Tony-VA (Virginia?) knows exactly what Jacque-WA (Washington?) is doing, I don’t see anyone claiming that a mobile home was purchased for $150 due to a tip from a park manager that one of the mobile home owners was two month behind on space rent.”
Yes, although I am from Virginia, I did understand what Jacque from Washington was posting because we both studied under the same master, Lonnie Scruggs.
You wrote:
" And, I don’t think a park manager or owner wants the negative publicity and legal entanglements that could easily arise from a story of someone being encouraged by the park manager to sell (more like give away) their mobile home worth $2500 for $150, esp. if the owner is low income, minority, elderly, etc."
You will find that park managers and owners have one concern. That is performing assets. A lot rent that has fallen behind for two months is not a performing asset. The chances that these people are going to be able to make 3 months worth of payments next month are slim to none. The parks only alternative is to evict them and file a judgment against them. This harms the homeowner’s credit and helps the park owner/manager very little. Once these people are evicted, the park now has a home occupying their lot with no one paying on it or living in the home. This is an even larger problem for the park. They must now find a solution to this problem. Do they wait and spend the money to obtain legal possession of a home they never wanted, that will likely require repairs and marketing expenses?
Lonnie dealers provide a service by providing a solution. By purchasing this home from the owner at whatever price they can negotiate, and keeping the lot rent current, they have provided the park with a performing asset (all they ever wanted to begin with).
Can Lonnie dealers buy homes for $150 plus back lot rent? Absolutely. Can all of them? Only if they negotiate! Most Lonnie dealers can tell you a similar story about a FREE home they did a deal with, or homes they paid a few hundred dollars for. Circumstance may dictate that you are the only alternative and the best answer to a bad situation. Motivated seller want to cut their losses. We offer that opportunity.
I am not certain how you determined she was “encouraged by the park manager to sell (more like give away) their mobile home worth $2500 for $150, esp. if the owner is low income, minority, elderly, etc.”
This is NOT an issue of discrimination. This is an issue of solving a financial nightmare for the home owner and the park. I submit to you that the value of this home was a matter of prospective, not a pre-determined $2,500. To some it is worth less, to us it is worth much more. Had these owners advertised this home for sale 2 months ago, when this problem started, they might have sold it for $2,500. They remained in a state of denial and now have to cut their losses. They were the ones to decide NOT to pay the lot rent. They were the one who decide that Jacques offer of $150 plus the back lot rent is a good deal. I also submit to you that a Lonnie dealer will market that home for several thousand dollars more than $2,500. Why? How? Because we had the cash to solve the problem. We also had the knowledge of how to resell this home, by taking small payments over the course of many months instead of the higher “All Cash” sale that most of this market cannot afford. We solved a problem for the seller, the park and the buyer and we received just compensation, for without us, none of this would have occurred. Instead of Win/Win/Win it would have been Loose/Loose/Loose.
I believe that if you study Lonnie’s material, and re-read my posts, you will realize that they were not a personal affront, but rather a comment on a great job, and a great deal.
Best Wishes,
Tony-VA
Re: Park Managers are the backbone … - Posted by Floyd-OR
Posted by Floyd-OR on March 24, 2001 at 11:11:19:
Jacque,
Thanks for clearing up the scenario, and no need to apologize, hopefully my questioning has not offended you.
But I’m still troubled by this particular deal: fixed income person has mobile for rent in the very low vacancy area of greater Seattle, and she ends up giving it away because neither she nor her son have the smarts to run an ad or put up a “For Rent” sign?
And the park manager/owner stands by and does nothing to help this tenant realize a return of at least some portion of the tenant’s valuable asset? Amazing!
I’ll be in the Seattle area sometime next week, and would love to drop by this park and look over your new mobile.
Thanks,
Floyd
Re: Park Managers are the backbone … - Posted by Harley Bradley
Posted by Harley Bradley on March 24, 2001 at 07:18:46:
Floyd appears to be one of those who never quite get past the negatives and will never find the first deal cause it has to be a killer or perfect deal.
My wife and I stared about 2 months ago. Our first deal was from a park manager. We bought two 14x70’s 5K for one and 7K for the other. Not Lonnie Deals? We sold the first in three days for $2500 down and payments of $250/month for 60 months. The second sold the next day for $4000 down and $250/month for 60 months. I have a stack of buyer info sheets representing buyers who called on the ad for those two homes and are now waiting in line for me to get another. This is tooooo easy. I guess I can see how a skeptic would have a very hard time with it. The secret is in financing those the banks turn their nose up at. If Floyd were seriously interested all he would have to do is put an ad in the paper “OWNER FINANCING - NO BANKS” $2500 down $250 month 14x70 mobile home. (555) 555-5555 Then when they call say it’s sold but you have offers on others and if you could get some information about their needs you will call them as soon as you get your next home. Count the calls, I bet you get more than 50.
Happens all the time… - Posted by JHyre in Ohio
Posted by JHyre in Ohio on March 25, 2001 at 11:58:28:
Many people don’t plan for cash flow interuption…ANY interption causes serious difficulty because every penny of cash flow is spent before received and they have no reserves. When cashflow is interrupted, they ignore the problem, procrastinate and let the cash deficiency fester. They become desperate for their self-created problem to just GO AWAY. These people will give away cars, mobile homes and $250,000 homes (that’s alot in Ohio) to get rid of the problem. People that have discipline, business sense and access to money can solve the problem AND make money…as Jacque has demonstrted. You can do the same.
John Hyre
It’s not the PM’s problem!!! - Posted by Blane (MI)
Posted by Blane (MI) on March 24, 2001 at 19:01:40:
Floyd,
Most PM’s are busy enough running parks and resolving their own problems, and could care less about their tenant’s return on investment. Could you imagine running a 200-pad park and being concerned about whether all the buyers are getting a fair shake?
Noone would take the job. Parks want lot rent. PM sees someone who’s not paying rent, then sees someone who will, and even pay the late rent. Which person would PM rather deal with? It’s a no-brainer, and is one reason why we get such great deals.
Here’s an example that doesn’t involve someone on a fixed income. Seller had an '85 for sale, wanted 11.5K in Jan. 2000. Called me in June, said she’d take 10K. “No thanks.” Called me in September, said she’d take $7500 even though she owes more. “No thanks.” Seller paid loan of $10,500 off in Nov. 2000, calls me in December, says she’s gonna give it away to charity if I don’t take it, offer her something, anything, so she doesn’t have to pay any more lot rent. Offered her $1200, she took it. PM knows I pay lot rent on time, gives me free rein in her park. PM was unconcerned about seller’s return on investment.I put $1300 of repairs in home. A week later I have a buyer for $8000, $2500 down. Can you say “free money?”
Seller had home for sale for a year, but never had a for sale sign in window or ran an ad. Basically same scenario as Jacque’s. It might be amazing, but it happens, and more often than you might think. Jacque solved one person’s problem, then provided a service for someone else. She deserves to profit from it. And she’ll probably find a lot more like it.
I too suggest you go to Atlanta, you’ll see it works everywhere, including where you live. Good luck.
Blane
P.S. Floyd, might I suggest you go… - Posted by Jacque - WA
Posted by Jacque - WA on March 24, 2001 at 14:07:49:
to the convention in Atlanta instead of coming here to Seattle. I have a feeling you may have a better chance of getting your questions answered.
You can click on the banner above to get that information.
Jacque
Floyd from Oregon. Taking advantage of??? - Posted by Jacque - WA
Posted by Jacque - WA on March 24, 2001 at 13:31:23:
Floyd,
Why in the world would you assume that this or any other park manager is just sitting by letting someone take advantage of someone less fortunate. Why would assume that is something any other investor or I would do?
Floyd, I know that there are people out there that are scraping the bottom of the barrel, my boyfriends a Police Detective, and believe me I hear ALL the stories. However, most people (maybe I?m being naïve here) are not always out to get someone - not everyone is like that. In my experience, it?s human nature to want to help those less fortunate.
Floyd, why would someone not put an ad in the paper and try to sell? Well, what makes you think they didn?t do that?.problem is that they don?t always understand or have the money to continue payments with no cash flow coming in or time to work on the needed repairs or simply understand working with ?creative financing?. Instead, they want the cash upfront to pay the mobile. These homes are impossible to finance. In fact, the only bank around here that does finance mobiles is Washington Mutual and even then the requirements are difficult for someone with less than perfect credit. The buyers for these homes, most of the time, do not have the credit rating and/or down payment required.
So, why would they sell it to me instead. Here?s the facts:
2 months lot rent: $265 x 2 = $530
April 1, 2001 lot rent due in less than a week: $265
Repairs: $500 - $1000
Taxes due April 1, 2001: $37.00 also past due for last year: $37.00
Plus in addition they have their own home with all these expenses to pay?.
Floyd, add it up?..has there ever been a time in your life when you couldn?t even come up with that $100 to pay or do something? Have you ever been at a point when the bills seem to escalate?What would you have done if someone was able to help you out of a bind that was only going to get worse. Have you never procrastinated about something? Either you didn?t want to deal with it? Know how to deal with it? Has it ever been easier to simply deal with it by not dealing with it (if that makes sense)? Heck, I have a garage full of procrastination?s, something I was going to take care of and for whatever reason it still sits out there.
Did the park manager blatantly stand by and let these people get taken advantage of?.No, the fact is that this home would have been turned over to the park for nonpayment. Instead the park manager simply gave the owner my number as a way to HELP her with a difficult situation for the owners circumstances.
So, Floyd, tell me which is the worst case scenario for these people:
OR:
Floyd, you tell me?.try to put yourself in someone else?s shoes, what would you have done? No, no one takes advantage or took advantage of anyone. If you believe that I?m sorry.
By the way, what do you do for a living?
Jacque
P.S. If this post sounds a little strong, well, what can I say?.it?s the red hair, blue eyes, 5?5?, 125 lbs, of pure frustration that anyone thinks of taking advantage of some - I?m cleaning my garage today!
Way to go Harley - Posted by Jacque - WA
Posted by Jacque - WA on March 24, 2001 at 13:50:31:
Good work on your deals.
I have found the park managers to be a great resource. It’s good for the park, owner and myself. We all come out winners.
I’ve only been at this for 2 months as well.
Keep up the good work and have a good one.
Jacque
Re: Park Managers are the backbone … - Posted by Floyd-OR
Posted by Floyd-OR on March 24, 2001 at 10:40:30:
Harley wrote:
“If Floyd were seriously interested all he would have to do is put an ad in the paper “OWNER FINANCING - NO BANKS” $2500 down $250 month 14x70 mobile home. (555) 555-5555 Then when they call say it’s sold but you have offers on others and if you could get some information about their needs you will call them as soon as you get your next home.”
Here in Oregon, this is called “Bait and Switch”, it’s illegal, a number of auto and RV dealers have been prosecuted and strung up for this approach. Harley is right, I could probably take this approach and not get caught, but I’m not too interested in using an illegal approach to making a few thousand.
Harley also wrote:
“Floyd appears to be one of those who never quite get past the negatives and will never find the first deal cause it has to be a killer or perfect deal.”
If you’ll take the time to understand the gist of my posts, it is that I’m trying to understand my local market, and get in contact with anyone who has actually done deals in the Portland OR/Vancouver WA area.