Posted by phil fernandez on November 03, 1998 at 16:20:12:
I agree with Mike. Some of those terms that dealers are offering are for buyers with near perfect credit. How about all the others. You have a built in market for people that do not have perfect credit. By offering owner financing you are filling a need to these potential buyers.
You can be much more flexible than dealers offering your owner financing hence opening up your market to many more buyers. It’s wide open for you.
So many MH Dealers - Posted by Stewart
Posted by Stewart on November 03, 1998 at 11:32:17:
I recently read Lonnie Scruggs “Deals on Wheels” and am looking forward to making some deals.
However, I’ve a question for some of you more experience investers.
I live near a large military installation. Mobile homes and parks are everywhere. There are also plenty of MH dealers in the area. While reading the ads in the local paper, I see where these dealers are offering NEW homes at the same payments that I would be using ($150 - $250 range).
My question is, if most buyers pay little attention to the actual price of a MH and only care about the down payment and monthly payment, how do I compete with the dealers. When there homes are obvliously better then mine.
Thank You
Re: So many MH Dealers - Posted by Fred(OK)
Posted by Fred(OK) on November 04, 1998 at 23:54:35:
It seems on the surface that you would be correct in your thoughts about the MH dealer ads you are seeing in your paper. I can assure you that Dirk is correct when he tells you they concentrate on the newer “high dollar” homes. They run those ads to merely generate floor traffic into their showrooms and the more traffic they get, the better percentage they have of landing someone with good credit. You can rest assured that if that potential customer has good credit that they won’t let him out of there without purchasing a new one–he can forget about that 83 Clayton they took in trade–they want the big bucks!
I never knew this market was so wide open until I ran a test ad to see what the market was on this “older” home financing. The results blew me away!! I received 91 calls in five days off that first test ad and been scrambling ever since to “fill the orders” for people looking for these type homes!
Dont worry, if you have the home and it’s bought within your market and you offer the financing. You
Re: So many MH Dealers - Posted by Dirk Roach
Posted by Dirk Roach on November 04, 1998 at 20:20:44:
Stewart,
It seems to me, Miliatry people are great in the Lonnie Method. They tend to move every couple of years (due to reassigments etc.) and you can get your mobiles back. And really importantly if they default, you can contact their CO and get your money.
I’m in the San Diego area, and we have a lot of military people here. Just today I saw in the paper where a company was offering financing to Military personel with $10.00 down on autos. This is quite common here, because of the CO situation.
I would of course research your market much more, but a military area, always seems like a plus to me.
Also I wouldn’t get too discouraged with the dealers. I have found that in MY market they really tend to concentrate on the bigger (doublewides) and the higher dollar mobiles. However of course this could be different in your market.
Check it out.
Good luck to you,
Dirk Roach
Re: So many MH Dealers - Posted by Susan N (TX)
Posted by Susan N (TX) on November 03, 1998 at 21:22:27:
Your market is the other 80% who can’t qualify for financing from the big mobile home dealers. This does not include only deadbeats, bad credit, etc. I have several parks and many mobile homes and good credit, but couldn’t get a loan from Oakwood for a $7500 home with 50% down (insane) because of debt ratios and self-employed status. Plus, you could point out that the new homes have 25-30 year loans with significantly depreciating value, while your home will be paid off in a few years and the home can then be traded in on a new home if desired.
Re: So many MH Dealers - Posted by Mike-DFW
Posted by Mike-DFW on November 03, 1998 at 15:12:56:
Check the small print. Sometimes they advertise bi-monthly payments. That is why they look so low. Also, by offering owner financing you can get some people that may not be able to qualify for a new MH.
Mike