Value of mobile homes - Posted by Ryan Cook

Posted by Dirk Roach on February 16, 2000 at 24:01:57:

in your post you state that the NADA book is an excellent way to deuterium used Mobile Home Value.
When we all know that Value is Subjective! It can be totally different from individual to individual and from situation to situation.

Basic economics show us that markets are volatile, they are not constant.

Every deal will be different.

I do agree that “field research” is vital to any type of deal. It is paramount to know what is what.
The best way to do that is to get out and personally check out the situation.

That is good advice for mobile home investors at every level, but especially for investors just getting started who are fresh out of the gate.

Not only will it put them at ground zero of the deal, it will force them to establish necessary relationships with park management, it will also force them to learn their market, and their target market.

The NADA book is dangerous to newbies in that it provides a warped sense of value on both the buy side and the sell side.

Of course we all love short cuts, but so often they lead to long cuts.
Reality is though, the street is the best teacher. When you know what you can sell something for you then know what to buy it for.

NADA does not tell you accurately what you can sell used mobile homes for to receive maximum return on investment, and that is what we as investors what in the first place. Maximum return on our money that we put to work.

Even on Note side (acquiring notes etc.) I feel that Track record (payment history), seasoning (current position in the note) and Location, are a much better place to start when doing due diligence, pre note buy.

The Nada Book reminds me of a friend of mine who plays the market very successfully. He is continually being solicited by folks with all these stock charts.
I love it when he says “You know what you find at the bottom of every sunken ship?”
“A chart room”.


Value of mobile homes - Posted by Ryan Cook

Posted by Ryan Cook on February 15, 2000 at 17:43:10:

I just wanted to tell you all that because of the great ideas that I have gotten off this site, in the 2 weeks or so that I’ve been reading your posts, I have now visited 12 mobile home parks, and looked at over 15 MHs… But I now have a simple question… Is there a Blue Book for MHs??? I’m having a hard time determining the value of the MHs…

Thanks for your help


NADA Appraisal guide for mobile homes - Posted by Nancy Cason

Posted by Nancy Cason on February 19, 2000 at 21:54:45:

Yes, there is a blue book for mobiles. Its is yellow.

Try or phone (800) 966-6232

I kind a - sort a use it. Still nice to know it is available and how to read it.


BEST WAY to find out Mobile Home Value! - Posted by Dirk Roach

Posted by Dirk Roach on February 15, 2000 at 23:28:07:

When you know what you can SELL something for then you know what to BUY it for. Whether it’s Mobile Homes, widgets or anything.

Ryan, it sounds like you could look at pursuing used mobile home investing, from the impression of your post.
In your post you stated that you looked in 12 parks, and at 15 mobile homes.
Which would be great, however your missing some important research like, comps.
You simply have to research it.
Out of the 12 parks that you visited how many Park Managers did you speak to, in person, and how often did you ask them what homes had been selling for?
See here is the thing, you need to pick up Deal’s on Wheels by Lonnie Scruggs, it’s cheap, around 30 bucks or so…However it’s VALUE is MUCH, MUCH greater.
Just like Mobile Homes.
Anyhow read that book, and then get into Mobile Home investing.
Behind every successful investor is education. Frankly right now, by your post it seems that although you have the desire to get into this, you are lacking the basics. So you need to get that handled.

Good Luck and here’s to your future success,

Re: Value of mobile homes - Posted by David Butler America’s Note Network

Posted by David Butler America’s Note Network on February 15, 2000 at 19:48:16:

Hello Ryan,

I have been investing heavily in mobilehome paper the past 3.5 years, and I believe the NADA Manufactured Housing Guide to be an excellent starting point. It does take some learning time to get comfortable with using, but provides a wealth of information for accurately determining book value of a home, by region, by location, and by construction, and allowing a reconciliation basis.

This can be a tremendous source for working from when you do the field investigation that you will want to complete for any mobilehome investment, providing you with a solid basis to start from.

The cost is $95 per year, which gives you three books - one updated version every four months. I have found them to be an extremely valuable resource.

N.A.D.A.'s toll free number is 800/966-6232.

Hope this helps, and best of luck.

David P. Butler Vice President, Broker Relations

Re: Value of mobile homes - Posted by Mikeb

Posted by Mikeb on February 15, 2000 at 18:45:32:

There is a NADA guide for mobile homes just like cars. You can buy one online ( $100.00 or you can go to your bank or credit union and ask to see theirs. It is not even remotely as user friendly as the automotive version, I’m sorry to say. There are so many manufactures that use the same name for their models it gets very confusing, just to warn you. You might want to check one out at the bank before you decide to buy one.

You should not use this book as a basis for determining the price you pay to buy your lonnie deals. It will depend to a much greater degree on your area, the condition of the home, and most importantly, the popularity of the park. Since you’ve looked at 15 homes you should be starting to get an idea of what they go for in your area.

THe NADA value is what the lenders use to determine the max amount they will loan on a used home. YOu should pay less.

Good Luck


Re: BEST WAY to find out Mobile Home Value! - Posted by Edward M.

Posted by Edward M. on February 16, 2000 at 11:05:04:

Been interested in getting started also, and there are many moble home parks in my area… I looked up the author you mentioned (Lonnie Scruggs) and all I found was books on female sexuality… is that the right author? I found “Deal’s on Wheels” by Gordon Page and another one by Tana Reiff & Vince Clews, but I didn’t look at the books themselves, for all I know they could be fiction. =) Just checking… let me now please.


Re: Value of mobile homes - Posted by Bill K. - FL

Posted by Bill K. - FL on February 16, 2000 at 08:42:34:

Hi Ryan,
Being new, you have to understand David and Dirk are talking about two different kinds of mobile home deals.
The kind of deals Dirk and most folks on this site are refering to are “Lonnie Deals”. Dirk mentioned the
book(s) written by him and they are a must read if you want to do these deals. These are older single wide homes on RENTAL lots. You are buying the home not the land. You buy them cheap, from $1 up to maybe $3k and sell for at least 5-6K or more with owner financing. For these kind of deals the NADA book can get you in trouble. Because the values will show higher than real life and relying on them will result in your overpaying for the home. As an example, I am selling an old 75 Dodge truck that I paid $800 for a year ago.
NADA book puts the value at $2500 or more if it was in better condition. I’ll be lucky to get my money back or maybe a $1000 in cash. NOW, if I finance it with $300 down and payments of $100/month for 24 months what am I getting? 300+ (100x24)= $2700. That’s the essence of the Lonnie deals.The deals David is talking about are most likely mobile homes sitting on land that is owned not leased and I don’t feel there is as much opportunity with those kind of deals because they are a lot more money and fewer people can afford them. Plus they are much more readily financed by third party lenders than Lonnie deals which is what makes “Lonnie deals” a deal.