Dan,
Thanks for your tips. Are the homes you are buying from dealers still located in the parks where the owners live ? If they are on a dealer’s lot, how do you handle deliveries to the parks and hook ups? Who does that for you and what are the costs ? It appears if you are paying cash for a cheap used MH, the cost of delivery could be almost equal to the cost of the MH itself. How feasible is it to move a cheap MH to a new location ?
Posted by Dirk Roach on March 25, 1999 at 04:23:26:
An interesting note. In the Lonnie deals which I have been doing I have been focusing on a set number of parks. One park in particular I am extremely pleased with. It is a Lonnie Dream. The PM can’t be beat, and has really worked with me.
After doing several deals in this particular park, and obtaining sales prices which pretty much fill out the numbers totally, a very strange thing has happened in this park. At least over the last week.
Word has gotten around of course as to how much people paid for the homes which I have sold them and everyone’s (respective) jaws have dropped. Everyone seems not to understand that these homes are financed.
Thing is now all the FSBO sellers have an inflated idea of what their mobiles are worth. To make a long story short they are holding thinking that they can get the same prices I have been getting.
My plan of course is to let this park “cool down” a little and focus on my other parks.
The Rev. J. Mack, who posts here sort of got an idea itching around in my head to maybe send out a mailing to all the FSBO’s in this park, stating that I am interested, can close immeadetly, etc. But I’m not sure if that would be the best course of action.
Anyhow any thoughts or opinions would be appreciated,
Thanks for your time,
Dirk Roach
I am not doing no were near as many mh’s as i use to But I found most of my deals through dealers. I know lonnie say this is not the best way But i tell you i picked up some steals.
I have found with the right aproach dealers are great . They get trade in of single wide when the owner is buying a new double. Now most of the time the double goes on a larger lot so the single does not have to be moved. Now the dealer has to pay lot rent on a product (used mh’s) that most dealer treat like a unwanted step child.
What i did was go in a talk to each salesman along with the sales manager I paid 2% commison if they brought me a home (based on my sales price) and 2% if they had buyers that could not get financing thru the banks. I put those buyers in my homes and it was like it was on auto pilot.
Once one salesman did a deal with me (and i paid cash) a week later the whole dealership was looking for homes and buyer for me. Even the slaesmanager and owners were sending me stuff. I fix a problem they did not want to deal with.
THEY SAID THAT THERE IS NO MONEY IN USED HOMES!
I told them they were right I was just barely scraping by (not).
I also sent post card to each home in the park address to resident usaly it was they same address lot # what ever so it was easy. I would also send a post card when i had a home for sale in the park offing 200 if they had a freind or family member that needed a home.
I have only sold 2 home as a result of newspaper ads.
I found that people hang with there own mh dwellers know other that would love to own a mh.
I’d get my name and phone number in their hands soon, and then follow up in 3-4 weeks. My best deals seem to come from people I contacted months earlier, and who finally give up trying to sell retail and give me a call. I love those calls! Maybe you could get a buddy to go in and really low-ball a few of them to jerk them back to reality. Good Luck!