HELP, I've never done MH's before (LONG) - Posted by Jim FL

Posted by Brad (KSA) on July 17, 2001 at 02:24:22:

Hey you guys in Oklahoma.
Watch out for John “Bones” Lowry–don’t do business with him.

HELP, I’ve never done MH’s before (LONG) - Posted by Jim FL

Posted by Jim FL on July 16, 2001 at 03:13:56:

Hello all,
Some of you may either know me, or remember my postings from the “Main board” here at CRE.
I am primarily a SFH investor, who recently relocated to Florida.
Before arriving here my wife and I had already planned on purchasing a course on MH’s. We knew that Florida would offer us great opportunities for deals, both in SFH’s and MH’s.
Since I already feel rather comfortable doing “Houses”, we decided to hold off on buying the MH course while we build a small inventory of SFH’s here. (Should have our first one this week, aside from the one we live in that is.)
NOTE: We have only been here 2 weeks, and just started marketing 3 days ago.
So, we got some temporary signs made up to get the word out about us, until our new advertising arrives, and gets placed up. (I am getting ready to BOMBARD this place with my “message”.)
And of course being the ever aggressive guerilla marketer, we got some calls already. (Not bad for two days of signs out there.)
One of which was a seller with a Mobil home.
He asked if I bought them?
I said, "Sure, if we feel there is a good deal to be had, and we can come to some terms."
Being rather clueless about these, I just played it by ear.
I asked as much as I could think of, and determined that we do have a motivated seller on our hands.
Problem is, I have no idea as to whether or not there is a deal here.
So, where else could I turn but here, right?
Here is what I know so far, and any guidance is appreciated;

Make: Redmond (or is it Redman?, there was background noise, hard to hear the seller.)
Year: 1977
Style: Double wide, with 2 baths, and 2 bedrooms.
Park: Allows rentals, and no restrictions for age etc. Will not check my credit if I am a “company”, which I am, and only want to know “Who?” is renting it. No hoops to jump thru here.
SHAPE: I drove out there tonight, and the home from the outside is nicely kept and appears to be in good shape, in a park that is kept up as well.

Sellers situation: Wants to move out of town ASAP , has found a house in another city, is approved already, without the sale of the MH, but wants some cash for closing on his new home.
He owes $10k on a note for the MH, was asking $17k for the MH. When I pushed him a bit, he admitted he "only needs $4k cash now, above the note to close the new house."
I believe I can get in here for less, and will certainly try if someone advises me there is a deal to be had.

Payments:
Note: $312.00/month (Note held by Mobil Home Lifestyles inc. Who is this, anyone dealt with them before?)
Lot Rent: $198/month, include water and sewer.

Seller states the home has a new “Heat/AC pump”, a new deck and attached screen room.
I have been to this park already, and it is in a nice area. There are many different types of people living here, retirees, families with kids, etc. I should be able to find someone with this wide a range of people who either wants to buy it or rent it.

I am checking the local market now to see if I can get above the payments and lot rent from a tenant or buyer.

What the heck do I do now?
The seller has been going to this other town where he wants to move to daily, and claims he is ready to “move the same day we buy”, if we want it.
He already said he is willing to allow me to take over his payments, as long as he gets, “some cash”. (see above for what he “Wants”, and claims to “need”.)

Basically, I am not looking to make a killing upfront, I just wanted to see if I can create some cash flow from this for a little while. My market research will tell me this.

Here is what I was thinking;
Perhaps get the seller to sell me the home for $2k cash, and take over his loan, then sell for whatever I can get down, and a payment from my tenant or buyer for more than I pay out to the note.
Even if I hold this, and keep it as a rental, I’m fine with laying out a little cash to get at least $200/mo in cash flow. Although IF I can avoid it, I would like to.
The first year alone would get back my initial investment, and after that it is all gravy. Assuming the market research reveals it will get this much per month.
I have been reading the paper, and even looked at some rental in this park, and so far it appears I can get more than the $300 something per month, that the payments are, plus cover the lot rent.

I just have NO IDEA “How?” to accomplish this, or if it is a good idea?
What paperwork do I need?
REMEMBER, I’ve NEVER done a MH in Florida?
What contract do I use? How do I get title if there is a loan on it now?
Man I am lost, I hate this, and yet, I’m intrigued.

I am going to order a course, NOW, but this will take some time to arrive, and I don’t want to miss out on a possible deal while waiting for it.

This seller called me twice yesterday, and three times today, so he is “Hot to trot” as they say.

Heck, even if there is someone from here who lives in my area, I’d be willing to share the deal with them, for a small piece of the pie (for me, you get the majority if interested. )and some education.
I am in Lakeland Florida.

Thanks in advance,
Jim FL

Re: HELP, I’ve never done MH’s before (LONG) - Posted by Chuck (AZ)

Posted by Chuck (AZ) on July 16, 2001 at 10:57:16:

Everything sounds good from here, congrats your on your way!

Assuming that your research checks out, get the house tied up on paper. Do a lease-option contract with the seller, with a right to sub-lease provision. Pay the $2k or whatever down (option money?), assume the payments, then sub-lease to your tenant/buyer.

You won’t be able to get the title until the seller’s mortgage is cleared… so be sure that all payments made are against the purchase, and not treated as rent. This goes for the sub-lease as well. So regardless of who’s actually paying it, they’ll all go toward the purchase of the home.

I’ll e-mail you the forms… they’ll need to be modified to the specifics I mentioned in MS Word.

Re: HELP, I’ve never done MH’s before (LONG) - Posted by Bobby White

Posted by Bobby White on July 16, 2001 at 19:58:37:

Hi Chuck,

You have become my third MH MHP guru. I am getting an expanded education thru your posts.
I would like to look at your MH lease option forms if they are different than Ernest Tew’s with " Get Rich Helping Others"
Keep the great posts coming.

Good Investing,
Bobby

Re: HELP, I’ve never done MH’s before (LONG) - Posted by Jeremy

Posted by Jeremy on July 16, 2001 at 13:17:17:

Chuck,

I was wondering if you could also email those lease-option forms. I am wanting to start doing deals sometime soon, not sure when though! I follow this
board quite a bit, and always enjoy reading your posts.
Thanks in advance.

Jeremy in Oklahoma

Re: HELP, I’ve never done MH’s before (LONG) - Posted by Chuck (AZ)

Posted by Chuck (AZ) on July 16, 2001 at 20:14:05:

Thanks bud!

Rather than e-mail these things 40,000 times (yea, I see where this is going), give me a day or two to get them downloadable so everyone can benefit.

I’ll post the link when it’s done.

Re: HELP, I’ve never done MH’s before (LONG) - Posted by kenboy

Posted by kenboy on July 16, 2001 at 20:04:57:

jeremy, I’m in oklahoma too (western) where are you?

Re: HELP, I’ve never done MH’s before (LONG) - Posted by Chuck (AZ)

Posted by Chuck (AZ) on July 16, 2001 at 15:41:16:

Thanks bud. The forms are enroute to you now. You can edit them in MS-Word as needed.