Posted by Chuck on October 16, 2003 at 10:02:59:
Posted by Chuck on October 16, 2003 at 10:02:59:
Where to get the repo lists? - Posted by Mike
Posted by Mike on October 11, 2003 at 16:41:20:
I reside in Northeast Louisiana. I wish to become a dealer of used (repo) mobile homes. Once I am licensed, where can I go (web-sites, phone numbers etc.) to find the repos in my area or surrounding states?
Have to speak out on repos…long - Posted by Greg Meade
Posted by Greg Meade on October 12, 2003 at 08:45:42:
Am reading more and more posts on repos and i’d like to add my $.02. There are huge risks involved in repos even if you do d.d. Have had two homes seized and will briefly touch on both. Got oakwood list and found nice 28 X66 1999 d/w. asked pm if any lot rent etc owed and he stated only a 500 bond required to remove home. This bond will be returned (sure) after home id removed and all trash, anchors, decks, etc. are cleaned off lot.Asked for thisin writing and he stated would take 3 weeks or so to get from corporate out of MN. Well, anyone who bids repos knows a new family on another lot will be living in the home in 3 weeks so deducted 500 from bid and secured home with a 12k cashiers check. That fri when dismantle crew went to dismantle home, they went to office, paid 500 cash, got a receipt and were served with a Writ of Possesion for home. Sherrif served Desist order and escorted crew from premises. Got an attorney, says will cost 5-7 k to get my home out of park in legal and states the 6k rent and penalties from park will cost at least 3k to resolve. So my 12k unit will cost me a min. of 16-19k and could take months of time. PM took me aside and said this will all go away for title (s) to home. When i asked why didn’t they just bid to oakwood, said they refused his 1400 bid (on a 64k payoff home) so to summarize, pm couldn’t steal the unit from Oakwood so he let it sell to me and will try to steal it from me! They have an attorney on retainer here so it will cost them zip!My next was a 1996 fleetwood s/w 3/2 had 5600 in it and owners of land refused access to land (put a fence up at entrance). Another attorney, another county. Have legal of 1300 or so and still counting. This will end in 2 weeks! Lost a nice cash sale over this, so will have to scramble to find a new buyer or pay to move tolot in a park i deal in a lot!
Not trying to rain on anyones parade, but there are very real risks in this phase of the biz. I had a signed release from the owners of the property and had paid them 100 to keep an eye on home. Even with due diligence, you can lose these homes. Have a friend in repos and he had a 14X66 s/w stolen in williston FL after he bought the home.
Out of 17 repo flips, have had 2 go south…almost 10% Cost of doing biz? I know i have to be financially able to walk away from any repo…abd this is tough cuz of the amount of dough involved…Good Luck All!
Re: Where to get the repo lists? - Posted by MArk
Posted by MArk on October 11, 2003 at 17:04:54:
Oakwood homes repo site.Good Luck
Re: Have to speak out on repos…long - Posted by shirley-fl
Posted by shirley-fl on October 13, 2003 at 15:02:51:
We live in this Park I think, did someone remove some skirting from front of unit and do the 2 sides not exacyly match, like in not a rectagel? If so,we feel your pain. Fellows who owned unit moved out because of the Manager picking on them and when they wrote to main office (in Chicago, not MN), they got sewed for non performing their contract so they left.
We want to move to, rent is outrageous and now we have t o pay part of advolurem taxes. Harold is a bad man, do not believe a word he say.
Re: Have to speak out on repos…long - Posted by KenS(WV)
Posted by KenS(WV) on October 13, 2003 at 07:06:47:
Just a story that happened to me and what I did to resolve it. Another dealer in my county has a couple of parks. There was an older double wide in one park that needed lots of fixing up. I talked to the park manager (not the park owner) and they said sure, I could buy it if I paid the back lot rent (over $2,100). The home was part of a package and the numbers worked so I did it. That deal went fine.
Now the next deal. A 2000 Champion 28 x 60 on a nice corner lot in the flagship park. Park manager says it can stay with some outside fixup and back lot rent. I bid the house as part of a package and get it for $18,000. The thing is, I had it already sold the same day for $48,000!!!. The Park owner then says the house has to be moved. He was bidding on the home to. Says that lot is already rented and I need to get it off. It would cost me about $6K to get this home off the lot. The people I sold it too wanted it to stay on the lot or there was no deal.
I told the park owner that I would give him $6K as a “lot retention fee” if the home could stay. We went back and forth on the deal and finally he consented. Deal done and I still made about $20K for the fast flip.
BTW, the park owner/dealer was impressed enough during our discussions that he offered me a job running his main sales lot here and to take over all of the in park sales for his flagship park. In case you’re wondering… I turned down his offer.
Re: Have to speak out on repos - Posted by Jon_FL
Posted by Jon_FL on October 12, 2003 at 19:27:29:
Greg, if you are talking about a Santa Cruz MHP it has been in the National news lately and I seriously caution you from saying any more about them unless it is done ananymously. They are criminals and use the Court System to wear people and municipalities down. Bought a Park near me (479 spaces) and jumped rents at once every year since. Any delinquincies, and they sue, sue ,sue. People abandon their homes to get away from them and they do gladly steal them. I know your situation and maybe donate your interest in mobile to the Catholic Church. They also get free legal (lots of Catholic lawyers,eh?)advice and will NEVER let anything of value get taken from them and they have more money than the Corporate vultures. Stay away from them and if smart (duh) don’t antagonize them until you get the unit out or otherwise dispose of!
Reminds me of the old saying if it sounds too good to be true, etc.etc. You will get over this Greg, it is all God’s money. One upside with them owning this Park is it has upward pressure on all lot rents in area. We will finally break the 500 per month lot rent in this area for the first time with new tenants. Will put a ton of moolah in my pocket so I love to hate them! Regards Jon (quit yer whining!)
Re: Have to speak out on repos…long - Posted by Marty ( MO)
Posted by Marty ( MO) on October 12, 2003 at 16:19:47:
Thanks for the education Greg, Steve, and Doc- I’ve done 4 repos and all have gone very smooth. After reading your post, it’s clear I’ve been lucky. I’ll definitely be applying “adapt or die” to my future deals!
I can just feel your frustration. - Posted by Dr. Craig Whisler CA NV
Posted by Dr. Craig Whisler CA NV on October 12, 2003 at 14:08:08:
I have had some similar horror stories happen to me after having won the bids on lien sale mobile homes in California.
This issue needs to be thoroughly discussed to avoid it happening to others. You should also publish the names of the owners or parks that you have had trouble with to warn others.
I would check the local court records to learn if the the same park has been involved in other similar litigation. There may be an illegal pattern to their behavior. If the park has done this before with the same lender, there may be some special liability on the part of the lender for not disclosing this. If the lender had prior knowlege of what was likely to befall you, you may have a cause of action against them (i.e. you can sue them). You should publish that lender’s name to. If you don’t have the guts, give it to me and I will post it. You got hurt. You should be willing to do something positive about it other than just complain. Mike don’t take this to mean that I think you are doing nothing esle. We should all pull together to prevent this from happening to others. Isn’t that pretty much what credit bureaus do?
Many park owners are real sleezeballs. You just can’t get around this kind of thing, especially in California.
Your post gives me the idea to get a signed letter in advance from the park, or land owner BEFORE bidding on the mobile home. It should be an enforceable contract, for condideration ($1), and be contingent on me winning the bid. It should allow me free access to remove my mobile home immediately after the bid. If the park or land owner refuses to give you such a letter, be VERY careful in your future dealings with them, and notify the lender (in writting) and ask them to resolve this issue (in writting). I will also be careful of signing offers to buy “as is, where is” in the future, as a result of your warning. If a repo dealer insists on this, I would insist on a addendem clause to protect me from just such occurrances as you describe.
Thanks Mike, for giving us the heads up. This is a real eye-opener for me. I think all of us need to slightly modify our proceedures for buying future repos.
Re: Have to speak out on repos…long - Posted by Chuck
Posted by Chuck on October 12, 2003 at 10:09:26:
“I almost never use real money until I am satified that the deal is good. I use a term called “check funds”, It is suppose to be a legal term understood by title companies, it is a check that is held unnegotated until something takes place. Clause in contract would read, “The deposit of $5,000 shall be paid in check funds and held by XYZ Title company until the approval of lien and title report.” I did a $4 million deal with a $5,000 unnegotated check that was held. You should get legal opinion on this method, it could be considered no consideration and an “out” for the seller if he wants to find a way out. Using this method can help you control millions of dollars in real estate without using real money.”
In theory, you could have cancelled this “check” when the deal went south… as it is, your 12k cashier’s check just cost you several typical lonnie-deals… and months of legal expenses/aggravation that you could have done without.
The 1st rule of corporate play is “adapt or die”.
How to bid a repo - Posted by Helen
Posted by Helen on October 11, 2003 at 22:30:26:
Thank you for sharing this information with us. could you shed more light on how to bid a repo
this blows my mind… - Posted by Greg Meade
Posted by Greg Meade on October 13, 2003 at 15:55:34:
yes that is it!!! 600 parks in that county and you nailed it! Either more people read this post than i ever thought possible or it is a small world! The skirting sections came off for 2 reasons …to check if tongues were under there and to check s/n. The layout is unique now, but 20 years ago and longer this was wide spread. A doublewide with one side extending 6’ past the end of the other. Have seen them on each end of unit. Oakwood and Fleetwood and Redman each have done these on special order coaches that i know of. If all goes well, will have unit on fri. of this week or mon of next. lawyer will file a paper to get this all settled. I refuse to whine any more, will post when home is recovered. I feel your pain, i will be out of there soon…that is a huge park. E-mail me at my link if you can, i promise not to involve you in my mess. God Bless!
sounds you have got it going on… - Posted by Greg Meade
Posted by Greg Meade on October 13, 2003 at 09:45:56:
in your area. This oakwood home retailed for 69k and had a 63= loan balance when repoed. I had it sold to a private family for 21k delivered and set. Would have had gross profit of 4k and after expenses about 3500 (but b4 taxes). Could never sell top of line oakwood 1999 for more than 22 or 23 k here in FL. Skyline here has a repo lot on 441 in ocala and have 2000 skylines 28X60 for 16.9 and these are very, very nice units. There has been a real move away from placing units in parks here in fl…know this is not everywhere, but the huge corps are buying up every class A park regardless of price and just jacking rents right thru the roof…and they buy with 8% CAP or even less cuz they immed. double and triple rents in parks in the south and west where there is no rent control! Don’t get me started! Good Luck
hey jon … - Posted by Greg Meade
Posted by Greg Meade on October 12, 2003 at 19:37:06:
truly a bummer…almost didn’t post about this, sure doesn’t make me look very smart, do it? Posted to try to help someone else avoid this pit. I am Baptist Jon, my family would kill me if i donated to another /chuch but i like the way you think! Will get over it, but have never had anything like this happen b4 and i guess it could happen to anyone. Figure to whine twice more, when i write checks and move on! Funny, get no sympathy from friends here also. Bob asked me if i can give him 6500 for his bday saturday. Thinks he’s a comedian! Good hearing from you…maybe will camp in clearwater instead of Daytona!
Re: Have to speak out on repos…long - Posted by Chuck
Posted by Chuck on October 12, 2003 at 16:54:44:
Sometimes… I wonder why I bother.
hey doc, you know who they are… - Posted by Greg Meade
Posted by Greg Meade on October 12, 2003 at 15:53:46:
if you live in CA. They have sued every city in CA (some cities 5 and 6 times) cuz of rent control and they and other corporate parks have partnered up with a legal firm in Twin Cities. They scare me to death…my own lawyer says to go ahead and pay outrageous back rent and penalties and move on…she says in 3 months i will regain home if i fight and probably have legal costs of 8-10 plus a portion of penalties, etc. versus 6,545 in back rent and penalties. Her fees will be only 1900 if i settle this coming week and write them a check! They have already filed 4 motions…each will cost 5-600 to defend. all have seperate court dates so they are wearing me down already.
I only have 2 options pay or fight. Every instinct says fight this but the numbers tell me it will cost much less to pay and remove home…I would rather burn it to the ground rather than sign over to them! Will be much more specific when I remove my home…this makes it very hard to concentrate on my other stuff! Gets me upset just to write about it.
Got Greg and Mike’s names transpossed… - Posted by Dr. Craig Whisler CA NV
Posted by Dr. Craig Whisler CA NV on October 12, 2003 at 14:09:50:
Re: Have to speak out on repos…long - Posted by Glen SoCAl
Posted by Glen SoCAl on October 12, 2003 at 11:38:14:
So basically you open an escrow?
i like the adapt or die… - Posted by Greg Meade
Posted by Greg Meade on October 12, 2003 at 10:41:24:
and on these two deals if i don’t die i will at least suffer. i read lots of posts here from people who are truly doing well with repos. My point is there are some very real risks inherent in these, and for newbies especially, take care. I like the link you posted, will ask legal advise on Tuesday. All my lenders require cashiers check to release titles to repo homes. I receive a Repossession Sale Purchase Agreement immed. and titles within 3-8 banking days. This is a very real window of vulnerability. An awful lot can happen in 8 days! Thinking of dspending more time on lonnies and less on repo flips except to fill MY land / home packages. Thanks
Re: How to bid a repo - Posted by Tony-VA/NC
Posted by Tony-VA/NC on October 12, 2003 at 01:00:23:
Bidding on Repo’s does vary from the common theme normally encouraged here. There is a reason for that. Repo’s are the equivalent of “foreclosures” in the real estate world.
You are no longer dealing with “motivated home owners”, you are dealing with lenders that have had to recoupe losses. They have no emotional ties to the property. They are dealing in dollars and figures.
Their motivation is hard to predict. I have yet to guess right on a consistent basis. Sometimes they take wholesale when the could get closer to retail. Sometimes they deny wholesale, hoping to get retail on a property that isn’t worth wholesale.
Honestly, bidding on repo’s might well be good training for REI investing in general. You won’t win all the offers but you will quickly realize that you don’t have to. You simply need to make offers on a few deals that give the seller (repo lender) what they need to save face, on the terms that make you money. With that mindset, what is lost?
You, the investor, will take a “non-performing asset” (for them)and make it a “performing asset” (for you) and pay a price that is close to wholesale (or less) to do so.
To make these offes simple, pick a figure that makes you money and that appeals to you enough that you are willing to solve the lenders problems at that price (or terms). Every buyer has a price. Even a non-interested investor will say, “well for $x,xxx, I would buy.” If that is the case, then bid what that price is for you.
Forget your concerns of what might insult the lender. You are no longer dealing with an emotionally attached owner. Just bid what makes the deal work for you (with some margin for error built in). Don’t be affraid to offend but also don’t expect to win them all. Again, you only need to win some of them.
If they ask $10k, but $2k works for you then offer $2k. Don’t expect to win them all, but if you win some then you are on your way. Trust me, you will win some. Maybe not on those terms, but you will win. I once bought two homes in a park for $500 total, only because I was willing to do so. Not all will work out that way. I may not have offered the owners that much but I had no problem offering the lenders that much.
Play the game and enjoy,