Posted by PatrickP (IL) on January 08, 2010 at 13:28:04:
Joe, good say. You’re so right on that. I once had a lady who wanted to rent one of my apartments quick. She offered to pay me double of the deposit I asked. Later I discovered that she was being evicted. Yes, the money she had came from screwing her prior landlord.
I am Done…The handwriting is on the wall… - Posted by Jackson
Posted by Jackson on November 21, 2009 at 20:03:38:
Let’s face it and not kid ourselves, other than the senior
mobile home residents, the family parks can only attack the very bottom of the barrel.
Sure there are some good people that live in a mobile home park, but the majorities are of low income, no pay, slow pay, unemployed,or fit in perfect on the Jerry Springer show.
If you want some really good comedy, I should record some of the people responding to my mobile home ads and put them on You Tube. What is funny is these are real people,
not a comedy routine.
I am sure I will get a response how your last three buyers were engineers and the others were hard working, but had some bad luck, a messy divorce, health problems, convicted of a crime they did not commit, well you know the story. I am sure you heard it a few times if you did a few Lonnie Deals.
With low FHA down payment and interest rates as well as the
glut of foreclosured homes, who in their right mind would buy an old mobile home?
Why live in a mobile home when you can have a real house for about the same monthly payment. The obvious result is the good mobile home buyers are giving back the mobile home to the seller (Lonnie Dealer) and then purchasing a home.
Running the numbers, with high unemployment, stick built homes priced at year 2000 level, government rebates to get into a a stick built home, doing Lonnie Deals no longer makes economic sense.
Okay, I sold a mobile home and made 87% on my money, better than cd’s, stock market, but run the numbers in about four months than tell me your actual return on your investment.
I am Done…The handwriting is on the wall. Do you see what I see or is just me?
Re: I am Done…The handwriting is on the wall - Posted by Sam
Posted by Sam on December 08, 2009 at 24:19:37:
I agree with you Jackson, after 9 deals, I also saw the handwriting on the wall.
My good customers purchased homes under FHA and gave me back my trailers, the no pay customers stayed and would not give me back my trailers without a lot of grief.
The real winners in all of this are the mhp owners, they got me, a sucker, to do all the work and guarantee the space rent.
Now I laugh how I had to beg the mhp owner to let me work in their mhp.
Maybe land/home deals are the way to go, but with house prices dropping so much the last year, I think the odds are just to hard to overcome.
Re: I am Done - Posted by Tony Colella
Posted by Tony Colella on November 24, 2009 at 17:27:15:
Jackson,
I learned the hard way some time ago to no longer try and convince anyone this game is for them. I have been told time and time again that I spent more time on that persons business than they did. My critics have been proven right on that account.
Is this a get rich quick game? Nope. I and most here have never approached it in such a manner.
Is it easy? Nope. Any time you deal with people, life is not easy.
Is the investment game changing? What isn’t in this economy.
One can rationalize why this won’t work or they can spend time adapting to make it work in this recession and beyond.
If its not for you, no problem. Since you gave it a try you have my respect. I am hoping that you find something that works even better for you.
Tony
Re: I am Done… - Posted by joe–ga
Posted by joe–ga on November 22, 2009 at 16:57:25:
thats all I buy, mobile homes on land.Thats all I WANT!.The typical mobile home purchaser couldnt walk in a bank and borrow $20 to eat lunch on, much less $60,000 for a stick built home.My buyers are epole who cant borrow from the bank, yet they are working people who need a home.I have clean, bug free , nice “mobile mansions” with clean or new carpet, new blinds on the windows,NICE!..They pay $3,000 dn, to $5,000 dn, mostly coming from a 401K plan they have at work,tax refunds, eect.Yea, I get them back after 18 to 24 months, but If oyu have $10K in the entire purchase,often less,Thats half paid for if they never make a payment.I have a legal system here where I can get them out if need be, but most have situations change and they offer to give them back in exchange for not foreclosing.Most are kept pretty clean, which I can go in, rehab it, and go again.Throw me some paper work on a stick built house where after 18 months, its already half paid for.Some poeple arent cut out for this type business,prehaps your one.I have made at least $6K profit on everyone I have ever sold.Some, $10K, my best ever sale, I profited $50K off it, but it took time I had rather have 5 mobile homes than 1 stick built house.There is alot more money in it, and they pay out faster.You MUST screen your tenants,but its nothing but a ATM machine if oyu know how to keep the money in it.I have been dealing with these homes on wheels for over 20 years.My dad got me interested in this and he never even knew it.He bought an acre of property once for 10 thousand, had it surveyed off and sold it as 2 1/2 acre lots.he profited 10 thousand in a few days work.After I saw that, I thought, I can do that!..and that was 1980…I cant complain, I have been blessed with these mobile mansions,yep, met some strange characters, but I have made alot of money also
before you quit - Posted by shawnsisco
Posted by shawnsisco on November 22, 2009 at 08:35:27:
Jackson, about a week ago on the on the other forum I posted a reply to question of where do you see the MH industry in 5-10-10 years from now. My opinion of the ?industry? is pretty gloomy (I sure hope I am wrong).
To the points that you have made about the only viable MH resident market being the bottom of the barrel types, I don?t think we are there ? yet. Certainly, a scroungy mobile home in a scroungy MHP will be acceptable to scroungy residents; to the exclusion of all other groups. But the same can be said about scroungy site built houses in scroungy neighborhoods. If your point is that profitably dealing with this type of clientele is hopeless, I beg to differ. Hard work, great systems, diligence and tenacity are required, but every town has successful buy-here-pay-here car lots and rto furniture operations, their methods have been systematized and are quantifiable, so profits can be earned dealing with the low-end.
As for the more stable resident base, you have correctly pointed out the huge negative impact that government interference has had on our business. All of the no money down, 30 yr mortgage + cash payment from gov with fire sale prices makes for some great ad copy that would have our potential buyers asking themselves; why buy the MH. The answers as to why buy the MH are those that we must present to our customers: 1st ? a paid for home is not too far in the future with our type housing. 2nd ? it doesn?t cost nearly so much to maintain the MH. 3rd taxes are much lower. It costs real money to pay the taxes, insurance, and make all the needed repairs and upgrades on conventional housing-and those bills and breakdowns always come at the worst time.
Just making the payments (or worse) with no paid for home in sight is where this group of homebuyers will find themselves on the .gov plan. In the past, the idea of equity build up through price appreciation was considered a given ? it ain?t so now, and there is no reason to believe that will return for a long, long time. This is an important selling point that must be made to prospects - the security that will come with a paid for house. Yeah, I know that many won?t reach the goal-that is not the point. The point is that idea of the security is what we are selling (along with a place to live now that has affordable payments).
These are tough economic times, it is not just our segment apartments, commercial, hotel, are all struggling.
Comment and a few tips. - Posted by MikeT/nc
Posted by MikeT/nc on November 22, 2009 at 07:18:12:
Jackson, You must be from eastern NC. I thought when I was farming I dealt with the bottom of the barrel. But most of my renters seem to be coming from UNDER the barrel. On a more pleasant note if you want some cheap molding here’s what I do. At lowes you can get whats called furrowing strips for about .87 for an 8ft. piece. I then set my table saw at about a 35 degree angle and rip them down the middle. You then have a nice piece of shoe molding for less than .50 cents. Also if you are going to do rehabbing work do yourself a favor and buy a set of Hitachi Lithium Ion cordless tools. Can’t wear them out and a charge last forever. Can’t wait till I graduate up to all Land Homes. I seem to be able to get a lot nicer tenants in those. Some actually pay the rent…
Re: before you quit - Posted by Celeste-fl
Posted by Celeste-fl on November 22, 2009 at 09:47:52:
How do you feel about mobiles on land? I used to love them, but one of the neighborhoods I’m in is starting to change.
Re: before you quit - Posted by shawnsisco
Posted by shawnsisco on November 22, 2009 at 16:40:15:
Celeste, I read your post below about the declining neighborhood that your property is located in, that is a tough situation to deal with. I recall Greg Meade posting over a year ago about some real nice sfrs being rented for $600 month ? these same houses had been $1800 per month houses a year previous. I think a lot of the problems you are seeing is due to rookie landlords screening their customers based only the prospects ability to pay this months rent. Obviously, these landlords won?t survive long like this, but the damage they do to the surrounding neighborhoods will certainly stamp down property values and probably turn some formerly marginal decent neighborhoods into war zones. I think this is currently happening in all types of housing neighborhoods, the fact that the house happens to be a MH is only a factor insomuch as the prices were already low, so when the rookies lowered their prices and standards they became viable housing options for the dregs.
Re: before you quit - Posted by joe–ga
Posted by joe–ga on November 22, 2009 at 18:16:22:
I have noticed if someone has quick ready cash, and needs a place quick, they are being evicted and the money they have actually was what they screwed out of their prior land lord.
Re: before you quit - Posted by Dr. B (OH)
Posted by Dr. B (OH) on November 22, 2009 at 16:49:19:
Ditto Shawn.
See my post below.
Thanks for the call the other day. All is well.
Steve