Research on Northeast MH market - Posted by Soapymac


#1

Posted by J.P. Vaughan on December 08, 1998 at 15:56:22:

We sell MHs for what they are “worth” in our marketplace.
Never had an insurance problem.


#2

Research on Northeast MH market - Posted by Soapymac

Posted by Soapymac on December 08, 1998 at 07:46:01:

I’m reading many of the posts about MH sales where prices are often under $10,000.

While I can find MH’s that require moving for about that price in my local area (Southeastern MA and Cape Cod) I would not use them - or purchase them - for use as a doghouse.

Would those who are doing Lonnie Deals in the Northeast (New England, NY, PA, NJ) be willing to share what they are finding as a respectable price for a MH?

I recognize that in Lonnie’s books that a principle is a principle is a principle…I’m not questioning that at all. However, I do know that local market conditions for real estate will vary (a home for $80,000 in Carter County, Tennessee is the equivalent of a $130,000 on Cape Cod), and I’m sure that the same holds true for MH’s.

I’m asking for help in determining the same variance.

Cordially,

Soapymac


#3

Re: Research on Northeast MH market - Posted by J.P. Vaughan

Posted by J.P. Vaughan on December 08, 1998 at 10:27:10:

Soapy,

First, that $80,000 TN house worth $130,000 in Cape Cod
would probably sell for $250,000 to $400,000 in San
Diego County, CA.

Even so, it is really not all that difficult to find
single wide mobile homes in decent condition for around
$3,000 to $4,000. These can be resold for $10K-$15K
when you offer the financing.

So the price of housing in an area does not necessarily
mean there aren’t any good MH deals around. Will you
find these deals in Del Mar or Rancho Santa Fe or
La Jolla? NO! You need to drive about 20 minutes out
of those exclusive areas to find the deals.

I recently realized that it is actually an ADVANTAGE
to live in higher priced areas like San Diego or Cape
Cod. In other areas, you can buy for $3K and sell for
$7K or so. Here, you can buy for $3K and sell for $12K
to $15K. We can make more money on Lonnie deals BECAUSE
our housing is more expensive!

Start riding those speed bumps in the modest parks, Soapy.
You’ll soon find a motivated seller or two…

JP Vaughan


#4

Re: Research on Northeast MH market - Posted by John(NH)

Posted by John(NH) on December 08, 1998 at 10:04:05:

In NH a motivated seller that doesn’t need to have
the MH moved is about 3k-10k depending on condition.
However, in NH you can’t simply sign over the title -
there must be a closing and a recorded
deed. Is this true for MA?
-john


#5

Re: Research on Northeast MH market - Posted by phil fernandez

Posted by phil fernandez on December 08, 1998 at 09:20:27:

Hi Soapy,

I’m in Vermont. There are really two markets up here. The retail market where mobiles go for $12,000 to $19,900. This market consists of mobiles in good condition being offered by unmotivated sellers. They stay on the market for a long time.

The other mobile market is the motivated sellers that have to sell their mobiles today and will steeply discount their price for cash. This is the market that I work. I’m buying mobiles in decent shape from $1,950 to about $5,000.


#6

Re: Research on Northeast MH market - Posted by Sheik

Posted by Sheik on December 08, 1998 at 08:45:33:

Hi Soapy:

I am in Long Island. Just closed on one for 6K.
Average buying price (for me) is 4K-6K. Average selling
price is 12K-15K w/ $1500 down.

BTW, these are ALL late 60s to mid 70s homes. There are
no later models available in the parks here.

One thing I noted, however, is that it usually takes
longer than average to get 'em sold - about 1.5 months.

~Sheik


#7

Re: Research on Northeast MH market - Posted by Matt B

Posted by Matt B on December 08, 1998 at 08:02:27:

I am in PA. I find most of my Lonnie deals around the Butler area, which is about 45 minutes north of Pittsburgh. An average price that I see for a “really good” home is usually between $5-10,000. However, a good 30-40% show up regularly for $1,000-$3,000. I just called on an '88 12X70 for $3,000. From the description, it sounds like my next deal. I will be checking it out this weekend. I really could become quite wealthy just pursuing these Lonnie deals, and will, since I will be involved in real estate investing (not just mobiles) full time at the end of the year. I should also mention that the deals that I have done so far have not exceeded $800, my price, and I have sold for $5,000.
(By the way, Roy, it’s all in those wonderful Kirby sales techniques! OK, Lonnie’s books had a lot to do with it, too.)


#8

Any issues with insurance? - Posted by Dave (CA)

Posted by Dave (CA) on December 08, 1998 at 13:30:10:

JP

On these MH’s that sell for $10K-$15K, do you ever have a problem where the insurance company says it’s worth less than that and won’t insure for the full amount? In that case do you take whatever insurance you can get?

Dave