Posted by bwhite-tn on May 27, 2000 at 20:42:05:
John
Yes you would run a credit check. Check their rent history with their past two landlords.
Realize that the park manager is going to check them out for lot rent. You can gauge by their decisions until you develop your own methods.
In the end only you can decide your comfort level.
Bobby
used vs. new - Posted by Rick Segers
Posted by Rick Segers on May 27, 2000 at 15:17:41:
I finally ordered Lonnie’s book Friday. Am intrigued by the concept. I live in SW GA, quite possibly the mobile home capitol of the world. In some counties MH’s make up 40% of the housing stock. Even small towns have a couple of new home dealers. Most of the new dealers are offering doublewide home deals of $500 down and $199-$249 a month. How do you compete with older used homes? I shouldn’t complain, I do field services for various mobile home lenders and end up inspecting and securing said new homes, and getting paid for it, after about a year when they foreclose on them.
Re: used vs. new - Posted by Karl (Oh)
Posted by Karl (Oh) on May 30, 2000 at 12:29:46:
In the last couple weeks I’ve had three different buyers tell me they started at the dealers and were promised a $500 down/$250 a month type loan. When it came time to start putting numbers down on paper, the down payment jumped up to several thousand, and the monthly payment went to over $600. The reason was less than perfect credit. The three buyers all thought the dealers were trying to rip them off, even though the dealer’s reasons were valid. So they called my ad, and two of them are buying homes from me (knock on wood). One has been approved through my broker, the other I’ve agreed to carry the note. And instead of paying $40k for a home for 25 years, they’re paying $8k or $10k for 3-5 years.
So maybe the dealers are actually helping us by looking like shysters. Even when the dealers can offer low monthly payments, there’s still the sticker shock of a $40k singlewide home. So we step in with the cheaper homes.
Karl Kleiner
Re: used vs. new - Posted by bwhite-tn
Posted by bwhite-tn on May 27, 2000 at 16:20:01:
Rick
You won’t really compete with those dealers.
Keep in mind the buyers have to qualify for financing
with lenders like Conseco.
The buyers you will be dealing with usually can’t qualify for that type financing.
Think about self-employed, time on job, slight to mild credit problems, but good income, good rental history.
Hope this helps.
Bobby
Re: used vs. new - Posted by John C.
Posted by John C. on May 27, 2000 at 20:08:19:
Hey Bobby,
If a loan company like Conseco wont qualify them then how do we qaulify them and know that even though they may have had a small credit problem they wont be dead beats, I realize there is a little risk every time you finance someone but just wondering what is the rule of thumb to use. Should I run a credit report on them or what. Also thank you for your info on dealing in Tn. and where to go for a license. It took about 5 calls but I’ve got a packet on the way.
Re: used vs. new - Posted by ChrisAZ
Posted by ChrisAZ on May 28, 2000 at 01:20:43:
Remember also that if you do your deals properly you should have a minimum amount in the note and should be recovering your initial investment in 10-14 months,if they default on their note just get the home back and sell it again
Chris