Posted by Robin (AZ) on April 23, 2003 at 13:28:24:
Hi,
I am in AZ also (I only work out of one park, in Tempe, for now). I was just wondering where your MH is at, and if you have had any luck selling it since you posted?
If you decide to move it, there are a number of smaller parks in Tempe, mostly on Apache Blvd and one on Lemon Street, that might take in such a small MH/Park Model. They seemed ot be mixed with owners and buyers. Not the nicest parks, but it’s an option. Good luck!
Desperate to Sell!!! - Posted by D
Posted by D on April 17, 2003 at 14:52:38:
OK- we bought this 1983 Park model home, fully furnished back in October. Been trying to sell the thing like crazy, and CANNOT get it to sell! We REALLY thought with snowbird season, the thing would sell QUICK! Come to find out NO ONE is buying! With all the costs, park rent, ads, etc- we have about $6k into it. It’s an ‘83, 10’x35’ 2 tip-outs, 1 br/1ba, fully furnished with storage room, etc in a POPULAR 55+ park.
We had some people come look at it, but determined it was too far away from the city for them. So, I checked into moving it and looks like it’d cost about $4k, then you have all the new park rent, fees, setup, etc. So we’d be into this thing at $10k HOPING to rent it out! I own DOW and have read it a couple times over now- 10k seems a little high price, unless we can get a ‘Lonnie Deal’ on it and make it work- we’d be happy with that. Otherwise, we’d be happy selling the thing at what we put into it ($6k).
My question is what you experienced guys think we should do? Do we move it into the city (where we can appeal to a higher spectrum of potential buyers/ages) and hope to do a lonnie deal with it? OR- do we keep placing ads in the paper, ebay, flyers, etc HOPING someone wants the thing at cost (keep in mind our cost goes up and up each time we try to sell it). Can someone help us out?
We’d PREFER to get some cashflow from the thing, but- not sure if it’s too hard to do after paying the expenses of moving the thing… Any thoughts/ideas??? I live in AZ…
THANKS!
D
Re: Desperate to Sell!!! - Posted by Phil Pelletier
Posted by Phil Pelletier on April 19, 2003 at 21:22:18:
Smart Lonnie dealers (I boldly include myself in this elite group) are learning all the time. Each deal they do teaches them something about the business. I cannot believe some of the deals I did when I first started out compared to the deals I can put together now. If you get VERY LUCKY and sell your home for $6,000, and you continue in the business, you will look back on that deal and be STUNNED at howmany red flags were flapping in your face ELIMINATING that home from you purchasing it in the first place. I mean no disrespect and I FULLY understand your plight as I am in the same boat on a home I am trying very hard to sell and I NEVER should have bought in the first place. As in your example, there were TOO MANY RED FLAGS waving in my face for me to see their warning! My example:
I bought a 2 bedroom/one bathroom older mobile that was 14x56 with a large porch and a nice cozy wood stove. The guy started at $7500 and quickly went to $5000 and I bought it for the princly sum of $1200. I thought I made a killing. Turns out 3 (and looking at 4) $408 rent payments later, the place is just to small to attrach anyone but people with damaged credit and the park will not let them buy the home (5 denials so far). I only have about $3200 into the home and I am trying to sell it on a contract for $6900 or just about anything I can. Can you see the problem you are in? You have a smaller home with fewer bedrooms and less living space. My advice to you is sell that thing for anything you can and make it a lesson learned to NEVER BUY A ONE BEDROOM HOME unless you have it sold the day you buy it (See Lonnie’s book about pre-advertising to line up people to buy). Also, NEVER BUY ANYTHING SMALLER THAN A 12’ wide home, again, unless you have it sold the day you buy it. Those 10’ footers are a nightmare to unload at almost any price.
Don’t mean to scare you, my man, but you are paying rent on a depreciating liability that will take a very specific buyer to actually effect a transaction. I am in the same boat and I would take $2500-3000 for my boat anchor of a place and call it a day and a lesson learned.
You can advertise it at $3900 cash or owner contract. If they pay cash, take the $2100 loss and move on to buying a better home to recover your loss. If they take the contract, charge them $8900 and tell them you won’t charge them interest if they put $2,000 down. Get creative. If they give you $2,000 down (unusual where I live but maybe not where you live), you will only be financing $6900 over 1-2 years, so your return will be OK, but more important, you will stop the rent payment bleeding and reverse the negative cash flow.
Sorry to be the one to tell you, but I am faced with the same situation, so I thought I would co-miserate (spelling?) a little.
It does get better. I can’t believe I paid $4500 for my first place. It was a 1975, two bed,two bath with a small shop and a leaky roof. I put $1500 into it and gladly sold it for $6,000 cash. After a little experience, my latest deal was a 1980 3bed/2bath with a fenced yard for $500 and she will pay the rent through June, just so she can leave NOW and get away from her ex-husband. Motivation is the key to buying these places. If you can’t sell it, don’t buy it. I have learned that the hardest way possible.
Phil Pelletier
Re: Desperate to Sell!!! - Posted by Jay
Posted by Jay on April 18, 2003 at 24:51:41:
Why not leave it where it is, and offer it as a Lonnie deal? It’d be better/easier to sell at $6,000, even if you have to finance it- at least you won’t have to waste $4,000 just to move it, and then offer at a higher price, AND sell exactly the same way. Good luck.
Re: Desperate to Sell!!! - Posted by Bryan-SactoCA
Posted by Bryan-SactoCA on April 27, 2003 at 18:36:43:
The question then becomes how do you know if a certain place will sell, and how long will it take to sell it? It seems to me that most MH transactions take place away from the local classifieds except for MH’s in 55+ parks which are simply impossible to sell (ads run week after week). All of the parks which have let me in have all older 2br MH’s-the fancy parks with 3br’s already have several brokers working in them. I don’t know how these homes get sold and resold-under the table to avoid HCD taxes I guess. But there must be some sort of market, maybe young single people who want to own a stick built house in the future but don’t have the big downpayment.
Re: Desperate to Sell!!! - Posted by D
Posted by D on April 18, 2003 at 12:45:14:
true true- I guess the problem is trying to get a buyer for the lonnie deal. Any suggestions? I’ve tried placing ads before- with no prevail and a high price tag…
THANKS!
D
Re: Desperate to Sell!!! - Posted by Chuck
Posted by Chuck on April 18, 2003 at 14:07:56:
Sounds like you’ve got a “Park Model RV”… not a mobile home. It’s that’s true, your using principals that apply to “apples” on a “orange”.
The RV Park industry is undergoing some fundumential changes, shifting focus to meet new customer demands… who are becoming more transient. Buying a home is no longer in-style, and staying in one park for the entire season is becoming less common.
Park Model RV? - Posted by Bryan-SactoCA
Posted by Bryan-SactoCA on April 24, 2003 at 23:27:16:
What’s the difference between a regular old RV (travel trailer) and a Park Model RV? All the parks I’ve been to that have “RV Spaces” have regular old (REALLY old, in some cases) travel trailers in the RV spaces.
Re: Desperate to Sell!!! - Posted by D
Posted by D on April 18, 2003 at 14:41:01:
Wow- I guess you’re right. So- what do you reccommend? I just placed a new ad in the ‘Manufactured Homes’ section today- 1br Will Finance or Rent’ blah blah blah… Like I said before- we just want our $6k out of it. Any suggestions you can give now? I truely appreciate it…
Thanks
D
Re: Park Model RV? - Posted by Chuck
Posted by Chuck on April 25, 2003 at 24:59:05:
The newer park models have pitched/shingled roof’s and resemble a downsized mobile home, about 30’ long. The older units have one or more slide-out’s and look more like a travel trailer.
Re: Desperate to Sell!!! - Posted by Chuck
Posted by Chuck on April 18, 2003 at 14:55:51:
You could offer a cash price and a finance price, along with the rent option. Then duplicate the ad in the RV section. Be sure you mentioned the age requirement, and define the home as a “park model” in both ads.
Re: Desperate to Sell!!! - Posted by D
Posted by D on April 18, 2003 at 18:37:00:
Placed an ad today- 1br Will Finance or Rent- comes out on sunday- we’ll see what happens. THANKS!
D