Posted by Chuck (AZ) on July 14, 2001 at 12:12:29:
I’d like to find a nice 40 footer… I’m converting 6 RV spaces over to mobiles. The lots are various sizes and it’s a bear finding nice used units that will fit.
Shame your not in Arizona… lol.
I wouldn’t give the dealer thing any thought unless you plan to do mobiles on a regular basis.
To make the note attractive, you’d want a slightly higher interest rate than normal, and a slightly longer term as well… based upon a slightly higher selling price of course.
$10k at 15% for 7 years would be acceptable to me as a note buyer, and I’d look at a partical on it as well as the full term (all things being equal). Other
note buyers may have a different opinion about this tho.
Sounds like her relationship with the PM isn’t very good. She may owe lot rent, or have been a problem tenant.
You need to talk to the PM before you do anything else on this deal… he may want the mobile moved or have a lein on it. Moving a DW could run into the thousands, a lein would hold up getting the title.
Get as much info as you can from the PM and post again.
Posted by Steve Bean on July 13, 2001 at 15:44:43:
Hi everyone,
I just had a lady call on my “We buy houses for cash” ad. She wants to sell her 24x40 doublewide Fuqua (they should change that name). She claims it is free and clear. She is current on the lot rent ($320) and says the MH needs minor repairs of roughly $1,500 max. She said she and hubby will do repairs. She has lived their for 13 years and is moving to join her family business roughly 100 miles away. Unfortunatley, I also live about 100 miles from the park. We developed a good rapport and I said that if I was to make an offer, it would be very low - maybe $2,500 including repairs. I don’t think she wants to pay the next lot rent. She claims that the park has zero vacancy, and that I should be able to easily sell the MH for $5,000 - $10,000 (assuming I provide financing). I have to independently verify all of this. I read Lonnie’s book some time ago “DOW”. I will look it over again. By the way, the town is Bend, Oregon and real estate prices/rents have been escalating dramatically over the last several years. I’d love some advice.
Posted by Steve Bean on July 14, 2001 at 08:11:52:
Thanks Chuck.
I plan on seeing this MH over this weekend. It seems like a 20X40 is quite small, although it does have 2 bedrooms and 1 bath.
If I pursue this deal, should I be sensitive to the Oregon dealer issue? I doubt if I will be doing more of these, as it isn’t my primary focus in investing. Also, any thoughts on structuring the note in order to make it attractive to a note buyer? I like the idea of flipping this thing quick and enjoying a small profit.
She mentioned that she has a tenuous relationship with the park owners (she doesn’t even deal with the PM). She want’s me to wait until we are farther along with our deal before I contact the park owners. Apparently, the park has virtually no amenities yet it is in a very good location. How would you proceed with getting an understanding of the demand for this MH and the park itself? Run an ad?