Posted by PeteH(NYC) on February 11, 2000 at 24:16:10:
Could be a deal here. First thing I’m confused by is your multiple descriptions of lot rent: “lot rent is $125 which includes sewer and cable” versus “PM says the average rents range from $200 to $250/month.” Which is it?
Next question: last bid they took was for $7K and they’re only taking cash bids. Who says that was the last bid? Broker? Call every MH dealer within a 50-mile radius and ask how much for a 17-yr-old repo. That will give you a good perspective on the wholesale price for the product, and a clue as to how real that $7K bid is. (If the $7K was a realistic cash bid, it’s shocking that the finance company hasn’t jumped on it already.) The other thing you want to have a good feel for is how much you can reasonably ask for the home when you sell it with financing; you’d like to get at least double what you paid for it. So if $15K is a reasonable asking price in your market ($1000 down and $280/mo. for 6 years, if you can wait that long), which means local 2BR rents average $530/mo at the high end of your lot rent estimate, then there’s a deal to be had. Go for it.
(Incidentally, you’d have a much better feel for how this deal should pan out if you read Lonnie’s books. I won’t be the only one to say so. Educate yourself before you risk drowning yourself.)
Posted by Debra (SC) on February 10, 2000 at 16:31:05:
Last month I found a 1993 16’x76’ mobile home, 2 bedroom, 2 baths, with 3-ton a/c unit in a mobile home park that looks to be in very good condition. The mh just went up for auction after being repossessed by the finance company. I was told the last cash bid they received was for $7,000 and that they are only taking CASH bids. I was thinking of
buying the mh (somehow) and doing a Lonnie deal and leave it
in the park. I don’t know what my options are in this, but I feel there is some kind of deal here where I could end up with some kind of monthly income from this deal. The mhp is fairly nice. They have new owners who are trying to give the park a new image, and I think they are expanding. Lot rent is $125 which includes sewer, and cable and the PM says the average rents range from $200 to 250/month.
I don’t know anything about buying repos from finance companies. I need some basics.
> Thanks for your help.
> Debra
Re: Possible MH deal in a MHP. - Posted by Dan (NC)
Posted by Dan (NC) on February 11, 2000 at 12:03:52:
In NC, there’s not too much difference between this type of deal and one from an owner, except the repo should come with a certificate of reposession in addition to the old title, both of which you will use to register the title. It doesn’t sound to me like the finance co. is real motivated right now. Plus, your deal is a bit on the skinny side. I would really investigate the market to find out what people are actually paying, not just what the PM says. What are local 2 bed apartments renting for? That will give you a good idea what you can get in payments on a sale (including lot rent). For a 7K outlay, look to net $300/month or more with 1K down, and always plan on getting the home back at some point, usually in worse shape than you found it.