Well, I'm half way to completing my first Lonnie deal - Posted by Thane, MI

Real Estate Investing Mobile Homes & Mobile Home Parks
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Posted by CH-CA on May 10, 2000 at 12:46:53:

Hey! It?s good to see that you are still around. Thought you disappeared ? UFO abduction, or something. (: Just wondering if you could give me a general idea of how much you would have paid for (and sold) on a home that was for sale in East County. It was a 1969 Skyline, 2bd/2ba in great condition. Fairly new air conditioner and heater, and fridge included. No repairs. It might be difficult to say since you didn?t see it. They were asking $7,200 for it. It sold before I could even talk with the park owner. ):

Do you buy partials or fund deals?

Thanks for all the help you have given me. I’m in the trenches now…

Clint

P.S. If you ever have the need for an apprentice, let me know. They say learn from the successful ones! (:

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Well, I’m half way to completing my first Lonnie deal - Posted by Thane, MI

Posted by Thane, MI on May 09, 2000 at 09:55:00:

My wife and I last night purchased our first mobile home. It is a 1970 14 x 60 2 bed 1 bath. We purchased it for $1,600. It came with a refridge/freezer, stove, washer/dryer, couch, curtains/blinds, central air, and dishes.

I have a few questions for the next phase. We will be getting the title on Monday the 15th. We are going to put an add in the Sunday paper for a buyer. HOW SHOULD WE WORD THE ADD? Also, what would be a good selling price? We were thinking of asking for $3,500 to $4,000.

I used the Mobile Home Purchase Agreement from the back of Lonnie’s book. What does it mean when it says that all taxes need to be current? There are no property taxes. Is it talking about sales tax?

We are in the process of becoming licensed dealers in MI. That process won’t be completed for this deal. What do we do about sales tax? What other issues should we be aware of?

Even though we’ve been to the conference and read the books, I feel like we’re kind of jumping into this. It’s exciting. Any guidance from Lonnie or anyone with experience would be greatly appreciated.

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Re: Well, I’m half way to completing my first Lonnie deal - Posted by Lonnie

Posted by Lonnie on May 10, 2000 at 08:22:06:

Hi Thane,

I was referring to the personal property taxes assessed by the local tax collectors. You may not have this, but in my area, the city, or county, which the MH is located, collects personal property taxes each year on the MH.

I’ve had several cases where the seller was delinquent on these taxes when they sold the home. A call to your tax assessor will determine if any taxes are owed. If so, I require my seller to pay the taxes and show me a receipt.

As for sales tax, that depends on your area, also. VA has a 3% sales tax on the MH, which the buyer has to pay in order to have title transferred. (Dealers aren’t required to pay a sales tax, only the individual.) Just be sure your seller has a free and clear title. Any liens on the title must be satisfied and signed off by the lien holder. If this is your first deal, I would suggest that both you and your seller go to DMV to be sure there are no problems with the title.

“Will Finance–No Banks” are probably the two words that pull in the most calls for me. But if you aren’t getting a good response, change your ads until you find one that works well for you.

Glad to hear you’re stepping into mobile home country. It’s a great business.

Best wishes,

Lonnie

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Re: Well, I’m half way to completing my first Lonnie deal - Posted by d.henderson

Posted by d.henderson on May 10, 2000 at 07:42:18:

Wonderful!!!
I have msmoney and can put the payment and interest rate and play with it until I get what I want. Really easy and opens your eyes as to what time and interest will do. Can print out the whole thing or customize it.
I ask them what kind of payments can you make (make them aware of lot rent that will be added)and ask them how long they want the note to run. Wham! A slam dunk. If not tell them that the numbers won’t work and just play with it. You will come up with something. I charge interest between 12.75% and 18%, still below what Conseco will charge and they have the type of credit that won’t qualify other places. They are happy and I’m happy.
Just get a nice amount down. I take half sometimes (If I have room in the deal) let them make payments on the rest.
always learning,
Dee-Texas

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Re: Well, I’m half way to completing my first Lonnie deal - Posted by Chris in AL

Posted by Chris in AL on May 09, 2000 at 17:36:05:

Just another comment- the callers I got on my sample ad never really asked what the sales price was. I asked what they could afford dow, and what per month, and had them asking about everything BUT the sales price. Maybe this Lonnie fella is on to something… :wink:

Chris in AL

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Re: halfway there - Posted by Blane (MI)

Posted by Blane (MI) on May 09, 2000 at 11:10:39:

Hi Thane,

Congratulations on your first purchase. Now let’s get that sucker sold. Did you say before you’re in Detroit? If so please contact me, as am there too. Am putting the paperwork together on a MH that’s closing Thursday, so I could probably help you on that end too.

If you are in Detroit, what park are you in? Have you checked for similar homes in the park, and the sale prices on those? Are you ok with the PM? Your sales tax is 6%+$45, or about $140 in case you didn’t know. You’ll have to pay it when you go to the Secretary of State’s office to have title transferred to you. You should get the title back from the state in about a week.

As far as ads, I can’t speak with authority 'cause I haven’t had much luck, but things are starting to pick up. One thing I did was at the top of my ad have “0 BANKS” in large letters for two reasons: to alert people about not having to use banks, and the zero got my ad at or near the top of all the ads in the MH section. Or use “WILL FINANCE” at the top like Lonnie says. The rest of my 0 BANKS ad was something like this: "14x70, 2 bedroom, all appliances, central air, move-in condition. Flexible terms. Call M&K XXX-XXXX.

As I said, advertising hasn’t been my strong suit. Put an ad in the Sunday Free Press and got 1 call. Try ads in the little flyers you see in stores. Try the Observer & Eccentric if it’s in your area. Maybe Tradin’ Times (haven’t tried that yet). A PM recently suggested I market the total monthly payment, especially if it’s a number less than what people in the area are renting for. If you want a copy of a flyer, I got one from a guy in Royal Oak I can pass on to you. It’s got the little phone numbers set up at the bottom that people can just tear off. I borrowed an idea from chris_wa for a flyer to give to neighbors of the home; can send that to you too.

As far as other issues to be aware of, just be sure to work on that park manager relationship. Make sure they’re clued in to what’s going on. Once they’re on board with you they can be a valuable asset. I’m sorta rambling now but just trying to cover all bases. You guys by chance live in Troy? Just found a biz card of mine in my wallet with a name and number from the convention. If that’s you, I’m the guy you and your wife met as I was walking out the door to drive back to Detroit. This business can and will get you very excited!

Again, feel free to call me, or maybe I can get in touch with you too. Would love to help someone the way I’ve been helped by others at this site. Good luck and keep us posted.

Blane Swenson
swenmb@provide.net
(734) 675-4743

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Good point - Posted by Dirk Roach

Posted by Dirk Roach on May 09, 2000 at 22:30:00:

Myself I like the flexibility of not having a set sales price. I’m usually making a good spread so that I can tweak the numbers up and down a thousand or so as needed by situation.
Dirk

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To catch a rabbit, you have to think like a rabbit - Posted by Dirk Roach

Posted by Dirk Roach on May 09, 2000 at 22:39:46:

Hi Blane,
in my experience most mobile home buyers do not look for mobile homes in the “big” metro papers. As far as call generating newspaper ads, the small inexpensive papers or better yet the “free” ones are the way to go. I can’t recall if the “Trade in Times” in metro Detroit is free or not, but I think it is a mistake to overlook that source of advertising.
Think of it like this, if you were running a televised ad campaign on cable for your Lonnie deals, you would want to advertise on WWF or one of the talk shows, as opposed to CNN or CNBC or some such.
In marketing you must market your message were it will be seen, by the target audience.
Look at Sam Berkiwitz, (an inside joke for metro Detroit, he’s a personal injury lawyer that runs like 75 ads daily).
Another great marketing platform in metro Detroit, I feel would be on factory Bulletined boards at some of the big plants. Find someone who works there and wants to make a couple bucks (like $10.00) and have them throw up a flyer.
If memory serves me right, your focusing on downriver, check out one of the river rouge plants.
Hope this helps to get that phone ringing,
Dirk

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Sorry got my attorny’s mixed up - Posted by Dirk Roach

Posted by Dirk Roach on May 10, 2000 at 12:20:36:

Sorry folks, Jeanne informed me today that Sam’s last name is not Berkawitz, but rather Bernstein. Go figure, it’s only been like three years since I last saw his commerical. I guess his ads weren’t as effective as I thought…:slight_smile:
Dirk