Do MH buyers use offer to purchase form? - Posted by TomR-IN

Real Estate Investing Mobile Homes & Mobile Home Parks
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Posted by Chuck (AZ) on July 14, 2001 at 13:41:33:

You need to re-think this whole thing.

What size is this “lot”? If it’s not at least an acre it’s way over priced (regardless of the market), and to be honest at that price it should be close to 3 acres… as it’s rural, not in the city.

I’m big on “buying the dirt” whenever possible, but don’t overpay for it.

Repo’s are priced all over the place, and usually can be had for less. $10k is PROBABLY high for that age,
it depends upon various factors. $6/7k would be more in-line with retail. Wholesale would be $5k, maybe less… and we’re talking no-repo here.

The next issue with this concerns renting… do you really want to be a landlord? Probably not.

As to the cost of moving a home, that also depends upon various factors. I have a fellow here in Tucson who’ll move one within the city limits (no permits required - just hook and drop) for $200. Dealers make a killing on this one.

Now let’s look at your numbers…

$13,000 for “the lot”
$5,500 for improvements to “the lot”
$10,000 for the mobile

$28,500

Just for comparison… that same money you could buy 5 mobiles (in parks) at $5k each.

You’d have $3,500 left over and could probably get a 6th home for that if you shopped a bit, but we’ll use 5 for our example.

Now let’s say you sell them on contract for $8K each, $500 down, 12.75% interest, for 36 months (balance $7,500). The payment would be $251.85/mo. on each mobile, for a total monthly income of $1,259.25

The earned interest on these 5 notes would be $7,824.45
The cash down payments would total $2,500
The profit on the principal would be $12,500

So on a $25k investment you make a total profit of $22,824.45

You saved $3,500 up front… so that’s $26,324.45 total profit.

You didn’t overpay for the lot, therefore you made no improvements to it, you bought 5 mobiles instead of 1 and had money left over, you didn’t become a landlord.

The WHOLE point of INVESTING in INCOME-PRODUCING property is to get the most bang for your buck. It’s called cash-flow.

I trust I’ve made my point.

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Do MH buyers use offer to purchase form? - Posted by TomR-IN

Posted by TomR-IN on July 10, 2001 at 11:27:33:

Do most of you buying mobile homes use a standard real estate purchase offer contract? I have an offer to purchase form approved by my attorney that I have used for single family homes, etc. Will this suffice?

I have a hot lead on a mobile home but don’t know if real estate purchase offers are used or what. Do most of you just go in with cash in your pocket and hand it over on the spot and they give you the title? Or do you tie it up with a contract? I assume, since no land is involved there is no closing. Is it basically the same process as buying a used car??? I am in INDIANA.

I will assume a purchase will happen as follows:

  1. Negotiate all cash price with seller face to face.
  2. Hand over cash on the spot in exchange for title.
  3. Take title to Bureau of Motor vehicles. Get mobile home re-titled in your name (buyer) and pay sales tax.
  4. You are now the proud owner of a tin can! Place ad looking for buyer.

Does this seem to be a likely scenario? Please, if anyone notices holes in my plan, don’t hesitate to critique me to death. I want to leave no stone unturned!

Thanks in advance for your help and insight.

Anybody willing to fax me a copy of their mobile home offer to purchase (if you use one?) so I can compare it to mine?

FAX (219)-522-4696

Thanks

TomR-IN

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Re: Do MH buyers use offer to purchase form? - Posted by Chuck (AZ)

Posted by Chuck (AZ) on July 12, 2001 at 13:48:43:

I faxed you a couple of these yesterday Tom, just looking for confirmation of reciept.

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Re: Do MH buyers use offer to purchase form? - Posted by Chuck (AZ)

Posted by Chuck (AZ) on July 10, 2001 at 13:34:33:

Tom,

All you need here is a “Bill of Sale” that outlines the transaction and a complete description of the item sold/purchased (mobile home w/VIN number). Take that and the title to the BMV. I can send you one if you need it.

You’d want to use a “Offer to Purchase” if you were buying it on terms/payments (lease/flip).

(BTW - I’m originally from the Columbus area).

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Re: Do MH buyers use offer to purchase form? - Posted by dan

Posted by dan on July 10, 2001 at 12:35:16:

I’m in a similar situation. I was planning on handling it the same way, except I was going to run my ad before I actually purchase the home. This way I can hopefully find a buyer who is ready as soon as I am. Also, I may be able to find a buyer for the deal I haven’t found yet. Now, I don’t have alot of experience, but all my knowledge comes from this website and “Deals on Wheels”. “Deals on Wheels” is a very informative book by Lonnie Scruggs that is available on this website. I highly recommend it.

Hope that helps,
dan

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Re: Do MH buyers use offer to purchase form? - Posted by TomR-IN

Posted by TomR-IN on July 13, 2001 at 09:25:12:

Thanks a lot Chuck. I did receive your fax and really appreciate you taking time to help out someone that you don’t know from Adam.

Many Thanks

TomR - IN

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Re: Need Input on Opportunity - Posted by Lynn P.

Posted by Lynn P. on July 14, 2001 at 24:27:41:

I am hoping to purchase an available lot for $13,000 (not in a park).The cost to sink a well is around $2,500, and septic tank $2,000 -$3000. I am just now looking for an appropriate 3 bdrm MH to put on the lot, but the price a repo dealer quotes me (includes moving, setting up, skirting, etc) for an '85 14x70 seemed high at $10,000. My real estate agent stated that her company finances mobile home purchases as long as the property is included. If I can get this put together for around $30,000 or less, and rent the MH for $450-$500 per month, could I view this as a good investment, clearing what appears to be about $150-$200 per month for a long-term rental or am I missing some major pieces? The lot is in a no-flood zone, in a nice mobile home area. Also, when I see mobile homes for sale in the paper, can I assume they can be moved if they are in a park? I know I can get a better deal that way. The repo man stated, “It costs up to $5,000 to move a home” to justify why his price was good. Should I look elsewhere for what I need? Needless to say, I’m just starting out, need a lot of guidance so as not to make a big mistake. Thanks for any feedback on my situation.