Posted by Barbara (ME) on December 04, 1998 at 17:02:32:
Hi Dirk…couldn’t agree with you more. My theory is "buy 'em, sell 'em, forget 'em…except for cashing the monthly check!
Barbara (ME)
Purchasing Mobile Homes - Posted by Travis (NE)
Posted by Travis (NE) on December 03, 1998 at 20:05:33:
I have been thinking a lot lately about what type of Real estate to invest in. I am leaning towards mobile homes. Here is my theory. First MH can be purchased for a lot less than a traditional home, so there is less risk involved. Second since they are usually priced under 10,000 dollars, financing is not as hard to come by, heck a cash advance off a credit card at 9.9% fixed isn’t too bad of a short term loan. What I am thinking of doing is buying a MH out right at a discounted rate for all cash, and then turning around and either lease optioning it to someone or selling it outright and taking back a mortgage for most or all of the price of the home. This would, of course, be at a higher selling price than I paid, in exchange for the L/O or Easy financing. I also thought that I might require the prospective buyer to rent straight out for a period of six months before allowing him or her to buy or L/O the MH. This way I can possibly find out if they will make the payments on time and to see if the checks will clear. I would appreciate any ideas, comments or information on this idea. thank you…
Re: Purchasing Mobile Homes - Posted by David S
Posted by David S on December 05, 1998 at 04:51:05:
good idea… hope you have 25-30 credit cards if you plan to make any money…
what are you going to do when you run out of cash advances?
your plan needs more work if you plan to have staying power. you need a place to lay off some of your paper, such as selling your created note, a part (partial) of that note, etc. if not, you are going to be history in a few months.
David S
Re: Purchasing Mobile Homes - Posted by Dan (NC)
Posted by Dan (NC) on December 04, 1998 at 13:32:33:
I like L/O MH’s because I can stretch the term from 3-4 years out to 5-6 years, which increases my yield somewhat but increases the total return substantially. Make sure you use a lease and a separate option contract, and make sure the optionee is responsible for most maintenance, taxes and insurance. True, it’s a bit more work and more risk than a straight note, but I like the longer term. Good luck.
Re: Purchasing Mobile Homes - Posted by Dan (NC)
Posted by Dan (NC) on December 04, 1998 at 12:59:18:
I like L/O MH’s because I can stretch the term from 3-4 years out to 5-6 years, which increases my yield somewhat but increases the total return substantially. Make sure you use a lease and a separate option contract, and make sure the optionee is responsible for most maintenance, taxes and insurance. True, it’s a bit more work and more risk than a straight note, but I like the longer term. Good luck.
Re: Purchasing Mobile Homes - Posted by Dirk Roach
Posted by Dirk Roach on December 04, 1998 at 02:44:52:
Hi Travis,
I would check out Lonnie Scruggs Matrial, before impletmenting your above mentioned plan. Lonnie also has some great free articles on the how to articles area of this site. I would pick up his books, they will help a lot.
Also I would check out your parks. The majority of parks do not allow one to rent out a mobile home. By renting them your opening yourself up to a lot of headaches and you are defeating the purpose of creating a note secured by personal property. One of the main reasons we like personal property is that we can REPO it (the Mobile) back if the homebuyers default on the purchase aggreement (they don’t pay). Much quicker than evicting someone.
Anyhow without getting into everything yet. Read Lonnie’s articles. And I would say read his books before buying your mobile home.
Also there are always a lot of people who have implemented his ideas in this sites chat room everynight. Come on in and get a lot of good advice there.
Hope to talk to you soon,
Dirk
Re: Purchasing Mobile Homes - Posted by MilNC
Posted by MilNC on December 05, 1998 at 11:22:06:
Dan,
I am in NC also. I am told by the state that you can
do 5 deals a year without being a dealer. Is this worthwhile or did you decide to be a dealer?
I don’t have an office and don’t want to get one to meet the requirement for dealers.
Any thoughts?