Re: Hi, I’ve got plenty of questions… - Posted by Dan (MD)
Posted by Dan (MD) on May 31, 2003 at 21:28:00:
How many people do you talk to for each seller you find? I’ve bought 5 homes and looked at about 20
How many people do you talk to for each buyer that you find? 9 out of 10 want to buy, 1 out of 10 passes the credit check
What’s been the most effective way for you to locate sellers? Park Managers, word of mouth
What is the typical buy price? $900 - $2500 for single wides, $3300 to $5000 for doubles
What is the typical sell price? $7000 - $14000 for single wides, $22,000 - $28,000 for doubles
What are the typical terms on the sale? 12.75%, VERY LITTLE DOWN unfortunately, about $500 down $220-$320/ month for singles and $1500 down, $500-$600/month for the doubles
What is the typical time spread between buy and sell? 2 months…you gotta figure that in for the lot rent
what is the typical amount of time you invest to complete each sales cycle? I’ve been rebuilding too much lately, the last one took 3 weeks of nights and weekends, just to get it in sellable condition.
How many deals do you complete per year? 6 so for this year (only sold 4 of em so far)…part time only
What type of business entity do you use to complete your MH deals and why? I formed an LLC, in Maryland, I can file as an S Corp even though I’m an LLC…plus the paperwork is much easier…I paid a lawfirm to form it…$350 for the paperwork, $130 for the filing…ouch
What is the biggest challenge you face in completing MH deals? Finding credit worthy buyers.
What is the biggest mistake that you have ever made? Paying too much because I wanted to have another home
Hope this helps out