Posted by investorrob on February 02, 2002 at 20:25:12:
I will loose not only my $3500 already invested but what I would have received from monthly payments.
You ask how much I received for a down payment (I received $$1100) or 10% down.
The problem is the parks here do not want older single wides —I tried to move a mh a couple years ago and no park that I know of wants a mobile home moving in that is older than 1990 (what they want are mh’s with comp tar shingles and wood product siding) not steel roof and metal siding like my 1977.
I am putting the mh in the paper for $1850.00 Monday and will let the new owner remove it from the park.
Very Bad day !!! Just lost $12,000 - Posted by Investorrob
Posted by Investorrob on February 02, 2002 at 15:38:48:
I have been dealing in mobile homes and thought I would keep at it, but as of today I am switching to sfh here is why.
I received a letter in todays mail from the mh park’s atty stating that my buyer was behind on December and January pad rent and February is due. They will not except it even if he payed all of it today. I know they will use this removel to put a brand new mobile home on.
I was over in another state for 4 months, taking care of my 93 year old mother while my 94 year old dad was healing from a car wreck. I kept in touch with the buyer by phone. He always paid me–so I didn’t see this coming.
Now I loose $12,000 from this. I will go to an investment area where I will control most every part of the deal. and not have others that control a part of what I invest in. For me that is single family homes.
I still can feel the blood in my face as I type this.
Not That Bad of a day lost less than $2400 - Posted by Tim Jensen
Posted by Tim Jensen on February 02, 2002 at 22:43:00:
Bob,
I don’t see how you lost 12k here. You can not lose something you never had. Tops you are out $2400. You have $3500 in the mobile home and recieved a $1100 down payment.
Now, why not talk to the mobile park manager. I am sure if you try and work with him he will work with you. I may even offer to pay up the back rent plus give him 3 months in advanced. It sure can’t hurt. Bottom line, the guy is a businessman.
Where is the mobile located? City that is and what park is it in? I may be interested as I have buyers who may want it. Any chance it is in King or Pierce counties? If so, what is the monthly pad rent?
A new investor may be able to salvage the pad rent problem with the management with cash and to bring all current.
Re: Very Bad day !!! Just lost $12,000 - Posted by Dan O.
Posted by Dan O. on February 02, 2002 at 20:33:25:
WOW I can see the power of this group, lots of ideas and talk of how to mastermind with others to solve a problem. Something good has come out of this for many people including Bob on how and what to cover in his investments. Very powerful site. I was thankful just to read the posts and learn.
Just my thoughts,
Dan
Why can’t you:
1)Evict buyer # 1 now.
2)Move the home to a more “investor friendly” park
3)sell the home to buyer # 2 and make your $12000 or more back
4)Take buyer # 1 to court and get a judgement for any losses due to his non payment to park #1, moving home, etc.
5)Repeat step 3 over when buyer # 2 defaults
Re: Very Bad day !!! Just lost $12,000 - Posted by Clare Z
Posted by Clare Z on February 02, 2002 at 16:44:59:
I don’t understand either. If he is current on his payments for the mh, can it not be relocated?
Does the tenant still want to live in YOUR mh? I would think you could aggressively try to relocate and then include the pad payments in his payments to you. You have ample reason to do so.
Could this have been avoided by having you pay the pad rent instead of your buyer? I have not done a mobile and one of the concerns I have in doing so is the responsibility of the pad rent for parks. You have to trust it is getting paid or have all monies come to you and you pay the pad rent for them. I don’t know the legalities of lease and sublease from the park’s standpoint, but if given a choice I would think having all monies come to you would have been better if possible so you know it was paid.
If you have to abide by park rules and a rule is that the tennant of the pad is the one responsible, then I guess that is one of the risks involved with dealing with mobiles.
There is risk in any kind of deal. This one just went passed your tolerance level.
2 years ago I looked for a mobile home to take an older m.h. this is a 1977—none that I contacted wanted one that old. Sense that time I have found out that they would much rather rent to a nice shiny now mobile that has a closer look to a sfh.
Might work but I have less than 27 days - Posted by investorrob
Posted by investorrob on February 02, 2002 at 18:12:51:
I will be putting an add in the paper Monday for $1850.00. Then see how long it is going to take by eviction process Think it will take longer than the 27 days I have to evict him.
and in this park the buyer has to live in the mobile home. As is most of Washington state or in my area.
If you follow Lonnie deals he for the most part will recommend not moving the mobile home – In this case it would cost about as much as it cost me to purchase this mobile home to move it to another park.---- IF ??? I could find pad and IF the park would let a 1977 mobil in the park. I looked a couple years ago for a pad to move one and could not find any around me that would take a 1977 mobile.
Right now my buyer is not performing up to his note contract to me so I could kick him out which would take much longer than the park is going to give me plus I will need to pay the $1080.00 in back pad rent,but then I would have to come up with the moving expense which I don’t have at the moment as well $about $3000.00 and won’t have till I close on another mobile.
Re: How do you figure you will lose 12k? - Posted by investorrob
Posted by investorrob on February 02, 2002 at 17:20:57:
I paid $2500.00 for the mobile with $1000.00 in fix up
I sold it for $11,000 on a mult year contract I loose my $3500.00 plus what I would have got on the note so you can see I lost way more than just $12,000
this was sold in June of 2001.
and we had our first meeting yesterday. Nobody mentioned doing mobiles, but if wish to join up and meet with us, you may be able to point those interested in this type of investing the right direction. Also the leads generated from others in the club might get mobile leads if you change your mind about still persuing the mobiles. Either way, come by the site and join up with the group.
Re: You can’t sub lease in Washington state - Posted by JohnBoy
Posted by JohnBoy on February 02, 2002 at 21:58:07:
What do you mean you can’t sublease in Washington State? Are you saying it’s a State law that you can’t sublease? I find that hard to believe, especially with all the investors doing sandwich lease options in your state. A sandwich L/O involves subleasing the property.
Perhaps you can’t sublease when a contract specifically prohibits subleasing, but I don’t believe it’s a law.
Re: How do you figure you will lose 12k? - Posted by NCPaul
Posted by NCPaul on February 02, 2002 at 19:49:06:
Did you get a down payment from the buyer? ($500-1000, whatever.) Keeping in mind that you will spend around $750 to move and re-set the house, your actual cash loss shouldn’t be much more than $3,500. Still not a good thing but a far cry from 12k! Good luck with relocating the house. For what it’s worth, I think you are right going into sfr’s. (regardless of how you figure profit/loss, I personally like sfr’s better!)
Posted by investorrob on February 03, 2002 at 15:14:22:
Tim
I just might take you up on that offer. About 3 years ago I started to chat with Chris on the creonline chat, when he was still over seas. He moved to WA. and we showed him around untill he bought his first mobile. He is now full time in school. When he was investing we would scrap sometimes over the same mobiles in the parks. I wouldn’t mind sharing some of what I know just don’t want to teach another to compete with me. Chris is somewhat of a distance from me. I am in Auburn, He was in Gig Harbor.
In the Puget Sound area there are so many sfh much easyer to compete because there are so many of them not so with mobiles there are only so many parks and mobile homes in them. King county would be a great place to build a mobile home Park.
I do want to expand back into sfh’s which I have done. My last foreclosure I did was quite nice bought for $24,000–$20,000 fixup —sold for $134,000 I had to bring in 2 other investor’s on this deal or pass it by.
Anyway would love to go to your next Meeting please let me know. My e-mail is investorrob-nospam@hotmail.com
take out the (-nospam)in the address. to make it work.
Russ Simms started a club several years ago and some investors were driving from Seattle to Tacoma for the monthly meeting. But thats has stopped now.
I havn’t seen Russ post for awhile but then I have been over in another state for for about 4 months.
Tim LOL guess you can see. By today with the help of everyone one that posted. I now know how to take care of my little problem with this mobile
I am going to go enjoy the Super Bowl. Hope you and the others here do the same. I am cheering for the underdogs.
