Posted by Anne_ND on May 04, 2007 at 17:00:58:
The answer to this depends on your goals.
In my case, I want to have as many notes going at once that a single person can handle. I don’t want employees, I want a system that is streamlined and brings in checks every month with little or no hassle.
Selling MHs can be expensive (repairs, utilities, bribes for the PM, etc) and it’s time-consuming and necessitates speaking to any number of felons and deadbeats before I find the kind of person that I want in my homes- hardworking, maybe a history of late payments, but a deserving person or family that needs a clean and safe place to live. [And I don’t mean to be a jerk about the people who call on my ads, but I have talked to a whole bunch of people who want to know if I will sell to sex offenders, or who want the home to be listed in their spouse’s name because they are hiding from child support and don’t want to have any assets.]
When I had 5 Lonnie deals, this was not a problem, but in scaling up, I have more potential vacancies, and more homes that need to be filled. By enlisting the current payor to find the new buyer, I save myself time, AND I get that assignment fee, which is a nice “pop” every few months.
It’s also true that if I have no homes for sale, but a few buyers on my list, then I’ll be glad to let a payor give back a home and resell to a new buyer. But it always seems like I get all the homes back at the same time, at the worst possible time (that would be October in ND- start of the cold season when no one wants to buy an older MH, and the utilities are going to kill me). So even one home with an assignment is a big help.
So, you are not missing anything, you’re right that you can sometimes make more money when you take a home back and sell again, but for me that’s not always the best course. And don’t forget that assignment fee- that really does cut into any “losses” from not starting the clock at “0” again.