Posted by Chuck (AZ) on February 21, 2002 at 13:48:17:
That’s about the size of it. If you haven’t invested in Lonnie’s books, do so.
Whats my best move… - Posted by Bill
Posted by Bill on February 20, 2002 at 22:35:36:
Just inherited 20k and wondering how best to maximize it… I live in Florida near a very large lightly developed area with 1000s of lots zoned for MHs of any age… Its pretty much a live and let live community with messy homes right next to neat as a pin homes… But still mostly undeveloped starting back in the 1960’s… Now its gettin alot more interest and I need to make a move soon on these properties…
Many of these lots formerly had homes on them so they have power poles, septic tanks, and wells already in place… The homes selling for less than 10K are pretty awfull and would need new roofs and windows… Some would need to be gutted and refurbished…
Here’s my questions for any to answer… Would it be best to buy a lot with the utilities ready for around 2K and put a functional but cheap (5K or less mobile)… Or would it be cheaper to buy the lot and old home together and gut and refurbish it… What shape should I expect a 5K or less mobile to be in… What should I look for…
My goal is to buy 4 MH with the land for 20K or less to use as rentals or resale… Is this possible… Any answers or idea’s would be apprecaited… Bill
Re: Whats my best move… - Posted by Tom(WA)
Posted by Tom(WA) on February 21, 2002 at 14:25:29:
Bill,
If you can buy a vacant lot which is ready for a MH for $2000, I think you have found a gold mine. I am looking for that exact situation but I cannot get anywhere near that price. You do not want to be a landlord to renters of mobile homes. The majority do not make good tenants, which means tons of your of time and many problems. Buy the lots, find Lonnie deals on homes, put them on your lots. Have a clause in your contract that they cannot move the home from your lot until the home is paid in full. You will make enough on each home to pay for the lot, essentially giving you the lot for free. You can rent out the lots for the rest of your life for an amount which is nearly all cash flow (and profit) and without too many hassels. You must start with Lonnie’s books. They will show exactly how to do the MH part and save you many, many expensive mistakes.
Good luck. You are in a great position.
Tom
Re: Whats my best move… - Posted by Chuck (AZ)
Posted by Chuck (AZ) on February 20, 2002 at 23:45:06:
You answered your own question…
“Would it be best to buy a lot with the utilities ready for around 2K and put a functional but cheap (5K or less mobile)?”
Actually, I’d say $5-7k to buy and $7-14k to sell as a general guideline for a mobile with little or no repairs needed… flex with this as the situtation demands.
Re: Thanks Chuck But What Then… - Posted by Bill
Posted by Bill on February 21, 2002 at 01:34:52:
Chuck… Say I get my 4 mobiles with land for 20K or less… What is the best way to maximize my gains with the least headaches…
Collecting $300 a month for rent indefinately (With All the Landlord headaches) or Collecting $300 a month for a finite time with no headaches… except possible forclosure… I found this opportunity at just the right time for a little bit of cash to go a long way…
I Plan on ordering Lonnie’s book right away… Any opinions on renting Vs selling… Or buying homes in parks vs owning the land… Could I sell the home and rent them the land indefinately… Really like what I’m hearing on this board…
Especially since the stock market is in the tank and expected to remain for quite some time… Any comments from all you experts would be appreciated… Thanks again Chuck… Bill
Re: Thanks Chuck But What Then… - Posted by Chuck (AZ)
Posted by Chuck (AZ) on February 21, 2002 at 09:55:52:
I’d sell the homes on contract (Lonnie-deals), and rent the land (space-rent). In effect you’d have a mini-mobile home park.
There are some posts about this … - Posted by Jerry Freeman
Posted by Jerry Freeman on February 21, 2002 at 08:08:49:
Search the archives for “Doc” and “Whistler” and set the search method for “any word.” Doc Whistler has posted several times about his method of selling the homes while renting the lot. He feels that this saves the headaches of renting a home while retaining the advantages of having income properties.
Best wishes,
Jerry
Re: I like the sound of that… - Posted by Bill (FL)
Posted by Bill (FL) on February 21, 2002 at 11:06:57:
So your saying I could have what amounts to be a scattered mobile home park… This park could grow with every deal you make… Would you have the same tax advatages… Could you write of repairs and improvements to the land… Could you right off bad debt or forclosure costs… If so wouldn’t this be the way to go rather than trying to have a park limited to one location… These are probably newbie questions that you have answered 1M times but thanks all the same…
Now that I have all my wheels turning maybe you could answer me this…
How would you or anyone else invest 20K in this market… What size return would you expect to get from this ammount in one year… Would 100K be out of the question… Just trying to get a realistic picture of what to expect… TIA… Bill
Jerry-Doc Makes It Sound Simple… - Posted by Bill
Posted by Bill on February 21, 2002 at 10:12:20:
Jerry thanks for the tip of looking up doc whistler… He and I seem to be on the same wavelength regarding Land/Mobile advantages…
Sounds like you have alot more options when you own the land and mobile…
Doc if your out there let me know if I got you right…
I have 20K to invest… Mobiles on land are the predominant form of housing in my county… The county is rural but surrounded by larger more populated counties…
Affordable Housing shortages in the larger counties are sending workers into our area looking to buy or rent mobiles… We currently have a glut of lots that formerly had homes on them…
The prices for these lots range from 1K to 10K depending on the location… (Some are waterfront)… Most of the low cost homes were built in the 70s and 80s and can be had in the 1K to 10K range depending on condition and Sq footage…
Functional mobiles with nice yard and fresh (painted) appearance usually sell in the 20K to 30K range…
To doc or anyone else… Would it be a good idea to start buying these devloped lots with existing wells, power poles, and septic tanks… Then it would be just a matter of finding the homes using Lonnie ads… And of course finding extremely motivated sellers…
Does this sound right… I purchase the developed lot for 2K… I buy and set up a functional mobile on the lot for 3K… I put $1000 into the cosmetics of the property (Landscaping, Clean up, Paint etc)… Run a lonnie ad and sell it for the going rate of 20k to 30K…
Or just use it as a rental and let it pay for itself in just over a year (typical rents here are around $400 per month)…
Or sell the home Lonnie style and rent the lot indefinately… (If I rent the lot am I responsible for the well and septic tank)…
Am I missing something here… Is this typical for this business… Could A 6K investment be tripled in a flip… Or pay for itself in a little over a year… Should I have this expectation or better for every deal…
Would be interested in hearing any deal stories similar to this that really did work out… Details please… Thanks again Jerry and Doc… Bill
Re: I like the sound of that… - Posted by Chuck (AZ)
Posted by Chuck (AZ) on February 21, 2002 at 11:36:20:
In this economy… I’m investing in solid commercial and business notes.
You do what’s right for Bill.
Re: Jerry-Doc Makes It Sound Simple… - Posted by Lucas
Posted by Lucas on February 21, 2002 at 14:31:31:
> If I rent the lot am I responsible for the well and septic tank)…
According to my understanding of this, you are only responsible for those items if you want to be. It depends on you set up your contracts.
If you spell out in your rental agreements that wells and septic tanks are Not Your Problem, then they aren’t.
Lucas
Question for you? - Posted by Jacque - WA
Posted by Jacque - WA on February 21, 2002 at 17:04:25:
Hi Chuck,
I am starting into the notes/loan business as well.
Have you read any particular courses that you feel helped you in gaining knowledge/expertise in this field?
I have read David Butlers, “Tin Can Alley” as well as Terry Vaughans, “Cashing In.” I found both of these courses useful and informative.
Jacque - WA
Re: I Heard That… - Posted by Bill (FL)
Posted by Bill (FL) on February 21, 2002 at 12:01:58:
Sounds like your taking a rational approach to investing in this unstable economy… Thats why I’m looking into this type of investment over stocks… A more conservative investment with more than just paper backing it up (ie enron)… From what I have read so far MH investing is much less risky, and has a much higher rate of return… Plus their is always something solid to back up your investment… Just thinking out loud trying to find out why everyone with risk capital isn’t doing this… What are the negatives that I’m not seeing with this approach… I understand you have to be patient, find moivated sellers, and get your price… Is that all it takes… Thanks for your input… Bill
Where to find out more … - Posted by Jerry Freeman
Posted by Jerry Freeman on February 21, 2002 at 13:56:31:
In addition to getting Lonnie’s books ASAP, take the time to read every post on this board and then search the archives for topics you’re interested in. There’s a tremendous amount of information here. You’ll get a very good sense of the upside and risks involved and how to address them.
Best wishes,
Jerry
P.S. A hint on searching the archives. Search for two or three words that most fit what you’re looking for and set your search for “any word” if you don’t find what you’re looking for right away.