Posted by David S on December 26, 1998 at 20:23:16:
These type books are only good when talking with a lender or prospective purchaser. The only way to find out value is by doing your homework; visit dealers and get the ‘tour’ of used homes; go to all the parks and look at anything that is ‘for sale’ regardless of condition; use the classified ads for your education by actually going to some of the mh’s listed and talk with the seller. find out why they are selling, problems with the home, neighborhood, etc etc.
This is a great business! The only way to learn about it is to hit the streets and arm yourself with the knowledge of your market… not some book written in another world.
Posted by Rodney (AZ) on December 23, 1998 at 19:46:52:
I’m getting ready to take the plunge into MH investing, via Lonnie deals. I’ve ordered and studied both of Lonnie’s books. I think I know what to do (operative word here is “think”). I’ve come to understand that there is a “blue book” of sorts to help determine value of the older MHs. If so, where does one obtain that info?
On a related note, any other advice for a newbie is appreciated. I have secured a $25,000 loan with which to begin my business. I am particularly interested in any advice from folks that have knowledge of the market in the Phoenix area.
Posted by Dirk Roach on December 23, 1998 at 22:29:47:
Tim is Right on target here! The blue book will only give you a warped image of value.
The park is the Key. I have found this to be the case. Rodney you need to get out and do some reconnaissance. Talk to everyone, and find out as much as you can.
I also agree with Tim in that although the 25k is great, don’t rely on it. It seems to me that people who start out with a big “nest egg” fall into rehabing these mobiles and various other avenues which may be a appropriate from time to time, but not necessary in every deal.
If you act like you have no money then you won’t be paying to much and you will pick and choose the best deal.
Just a couple thoughts in agreement with Tim,
Dirk
Posted by Jen(NE) on December 23, 1998 at 21:59:02:
Try www.nadaguides.com --They have mobile homes you can query the value on. You can also buy the books (I believe $95/year). Also, double check with used mobile home dealers or park managers in the area. They can also give some insight as to what particular mobile homes have sold for.
Posted by Tim (OH) on December 23, 1998 at 21:10:53:
I spoke to a lender in my area that specializes in mobile home lending. They told me that although the blue book for mobile home values may be of some help, older mobile homes and the areas that they are located in coupled with their condition, etc. have more to do with the values than any published values. Spend some time looking at mobile homes for sale and negotiating prices to get a feel for their value. Also place an ad saying that you have a mobile home for sale with owner financing. When the prospects call find out how much down and how much per month they can afford.
That will give you an idea what you can sell for.
Although it is helpful that you have a nest egg to invest with, I would advise buying and selling like you have “no money at all”. It’s too easy to pay too much and part with too much cash when it’s easily available.
www.nadaguides.com I subscribed for a year and I’m glad I did. Really study the guide and figure out exactly how to use it to determine the fair market value of the homes based on condition etc. Then you knock off 25% to get the wholesale value.