Posted by Sandy FL on January 24, 1999 at 17:03:03:
WOW. Sounds exactly like an ad I read today in Ft Laud.
(there is probably as ad like that in every city in the country…) No way would most people here do that deal, just because there is no room for profit (for you). You have to be able to put someone in the home that pays more to you, than you pay on the loan + lot. In most areas of the country $592/month wouldn’t be the deal you seek. This is a retail deal, and you would be basically assuming this lady’s problems.
However, if its where you want to live, that may be a different matter.
Use this time, while you are waiting for your course to arrive, to learn home values in your neighborhood, make lots of calls, and ask lots of questions. And don’t forget your local RE clubs and to read every shred of
material on this website.
We are two “newbies” who ordered the C.S. program and are anxiously awaiting it’s arrival. Being that we are ready to get started, we decided to browse through the Sunday paper just to see if opportunity was in our area. Sure enough, we came across an ad that read ASSUME LOAN, 3BR, 2BR 48x28 '98 call xxx-xxx-xxxx. So hey, I decided to call. This very nice lady explained to me that the mobile home was bought last year but she and her husband had to relocate therefore, they need to sell quick. They were initially asking for $1000 down but now they are asking for NOTHING down! The amenities in the home are as follows: Vaulted ceiling, brand new washer&dryer, microwave, new carpet, standup shower, and two phone lines. The mobile home park is also brand new and her home is in a cul de sac. She is paying $392 @ 12% interest + $200 lot fee. This home is financed through Oakwood homes and she has already lived there for one year. The payoff is $45K. Now, because I have not received my course yet I am slightly in the dark…OK way in the dark! I’m supposed to view the home next weekend. Just because her ad says ASSUME LOAN that does not neccesarily mean the same thing as ASSUMABLE LOAN right? If not, how can I with about 1K to my name and a marginal credit history acquire this home. Actually, am I way over my head on this one? Thanks in advance!
Re: Please! Please! Please!..Help! Help! Help! - Posted by John Katitus
Posted by John Katitus on January 25, 1999 at 24:01:43:
Mobile homes are a different type of real estate. Because they don’t appreciate in value (in fact they depreciate), there is no profit in owning them over a period of time. Therefore, unless you can buy them under market value and resell, there is no potential profit. The lady in the paper will be lucky to find an owner/occupant to trade places with her. And if that person doesn’t live there a long time, they will be stuck in the same position.
A very lucrative branch that you can get into with little cash and without the financing problems that accompany house buying (and confound most new investors) is buying older mobile homes and reselling with financing. These are referred to as “Lonnie Deals” here, after Lonnie Scruggs, our mobile home mentor. Look in the articles section for more information. Good luck.