Re: putting mh on land (LONG) - Posted by Jim Upchurch
Posted by Jim Upchurch on March 26, 2001 at 19:22:41:
I have also thought it could be very profitable to set the home up and sell it as a “spec” home. Im fact, I am in the process of doing this.
I am a mortgage broker and finance land/home packages for several dealers.
I have talked to a hard money lender to fund the transaction. It costs a “ton” but I don’t have a conventional lender to fund the deal until I do a few and get a line of credit.
I have arranged to buy the home from a dealer going out of business for about 75% of invoice. The one acre lot is in a manufactured home subdivision (includes well, septic, driveway and clearing) where similar homes sell for 110,000.
The details of the venture are as follows:
New 1750 SF DWMH… 27,000
One acre subdivision lot… 27,000
Heat Pump… 1,800
Brick Veneer… 5,000
Hard money finance costs… 5,840
Four months interest… 3,893
Total cost… 82,773
I plan to sell the home to a FHA qualified borrower with “zero” down (97% loan). I will pay the closing costs and use a “non-profit” downpayment assistance program (Ex: “Nehemiah (sp?)”,“Hart” or “Buyers Fund”) to cover the down payment for the buyer (3% down payment + 1% fee to non-profit)
FHA Loan @ 97%… 106,603
Total cost of home… 82,773
Closing costs… 3,000
Down payment assistance… 4,396
Pre-tax profit… 16,434
Any suggestions before I get started (end of next week) would be greatly appreciated.