Posted by tom on October 02, 2003 at 11:34:54:
mobile financing is totally different than SF with land.
my first mobile (and only) was with land 74 SW cash for 10k. i sold rented then sold to same for 5k down 15% fully amortizing 5 yr note. that is 476/m for 5 yrs. you do the math.
tom
What Truly Makes A Mobile Home Deal!!! - Posted by Dfree
Posted by Dfree on October 01, 2003 at 12:28:04:
I just got a call from a gentleman who’s interested in selling his mobile home. Let me first say I’ve never worked, trained or learned how to create deals with Mobile Homes. Mind you I know what makes a deal, Iv’e been a full-time investor for @ 2years working with SFH and I know how to be creative but I’m not sure if the same principles work for MH or is there other opportunities available.
I’m looking for all suggestions about how to make a deal out this or simply tell me there’s nothing there. Either way I just want to learn a little about MH before I move on, and the next time I’ll have a better idea.
To me it sounds like a waste of time, and/or maybe one of you knows what to do with it.
Guy wants out and fast(VERY MOTIVATED)
Purchased @ 39k- 10%interest financed???
Valued @ 26k
Owes 37k
Monthly Notes $608/insurance *included
Park Fees/Dues $165/mnth
Not behind on any notes, no second liens. Guy just wants out to try and start over from scratch. Mobile Home Park is really nice and all spaces are purchased and/or leased @ $400 To $600.
Can anything be done with this or is this just a guy who’s out of luck
Let him take the loss or let him take a walk. - Posted by Dr. Craig Whisler CA NV
Posted by Dr. Craig Whisler CA NV on October 03, 2003 at 21:43:26:
Not knowing all of the particulars it is hard to answer your question except in generalizations.
Generalization one: If the retail value is 26k, then the wholesale value will probably be about 6k-10k.
Generalization two: Buy wholesale for cash and sell retail with low down and carry back the financing yourself.
Generalization three: If you are to buy for cash this is what your offer might be: Seller buys down loan to 7.5k and buyer takes over the loan on a ’ subject to basis’ with the lender’s written consent. I.e. the seller must pay you $29.5k to take it off his hands. Its his loss because he is upside down on his loan from a wholesaler’s perspective. That mean he owes more than it is worth. Let him take the loss or let him take a walk. You’re not in the business of taking losses for other people’s mistakes. You’re in the business of capitalizing on those mistakes.
All of this just points up the big difference between those of us who are in this business and the average retail buyer. This guy paid too much and he would love for you to step into his shoes and take over his problem for him. Remember the story told recently, of the donkey and the horse.
Common sense rules. You said that you are already experienced in investing so I don’t understand why you would even ask a question like this. Would you pay $400k for a $200k SFR? No? then why would you pay 37k for a 7k mobile home?
The real problem you have is that you just don’t yet know mobile home values like you need to. If you really want to be in the mobile home business I suggest that you start by reading Lonnie’s two books that teach you how to determine value and how to buy at truly wholesale prices.
You are asking a question that is really about, what is the value of this mobile? Until you know the answer without asking you will not be ready to do your first deal.
Dfree, I intend this as a constructive suggestion designed to give you some direction, not as a general criticism.
Regards, generalisimo doc