Posted by Phil Brown on October 11, 2005 at 20:53:48:
Yes, “Lets move on to something else.”
Lonnie/Tony /Scott Dealers-Auction N.C.,S.C.,GA - Posted by Phil-TX
Posted by Phil-TX on October 08, 2005 at 19:52:36:
For info go here:
http://www.hudsonandmarshall.com/auctionInfo.asp?auctionName=S.E.+Mobile+Home&auctionID=242
Re: Lonnie/Tony /Scott Dealers-Auction - Posted by Lyal
Posted by Lyal on October 09, 2005 at 10:45:48:
Phil, With all due respect, part of the allure for Lonnie and Tony/Scott deals is that you control the transaction from start to finish. Also, In most cases with the Land/Home deals, once you have your infrastructure in place, you don’t need any of your own money to complete the transaction.
With auctions, you have no contro. In most cases, you need to show up with a pocketful of money and compete against people who have no clue what they’re buying. They get caught up in “auction frenzy” and bid the homes up beyond all reason, sometimes higher than retail. In the last land/home auction I attended a few months ago, an older 14 x 80 Marshfield that had been stripped of appliances, needed roof and floor work with a garage on a small lot, went for $58,000!!!
Obviously there will be exceptions but I don’t think there are many deals to be found at auctions.
Lyal
Re: Lonnie/Tony /Scott Dealers-Auction - Posted by Phil-TX
Posted by Phil-TX on October 09, 2005 at 18:49:52:
Lyal,
Thanks for your response and concern. I guess I need not look for a deal at any real estate auction again. The Land/Home deal I was involved in that closed on October 1st must have been a fluke.
It was a 1999 Clayton Country Comfort DW, 1568sf on an acre of land. Net cost $34,133.53. This home will be retailed for around $68K-$72K after putting $5K max in it.
In addition to being someone being interested in buying Land/Home deals and doing other kinds of real estate investing, I can sell HUD property. This was a HUD home that was put under contract the Friday before hurricane Katrina hit. As you probably already know, HUD sells real estate thru a bid process or auction.
If I had used your advice about auctions, this deal would not have happened.
I respect your opinions Lyal, because I’ve read a lot of your posts as I have visited this board many times and have just recently begun to post here. But, in this case, I believe you are generalizing too much on this issue. Sure, properties get bid up by people that get caught up in “auction frenzy” but I think there are more people who frequent this board besides me that have been involved in good deals that were found at an auction.
I don’t know if there are any deals at the upcoming auction in the S.E. or not. I just wanted to let all who are doing deals in that area to have the information. Hopefully, they will know their market and can evaluate whether they bid or not and refrain from overpaying.
Just my $.02
Back to the subject… - Posted by Lyal
Posted by Lyal on October 10, 2005 at 21:27:20:
Phil,
As I mentioned in my previous reply, there are exceptions to every rule and that is what you have found. Great deal for you and I’m glad you found it. I’ve had some success myself with trustee sales, short sales etc but those are advanced plays.
My concern is that a large part of our audience here are novices they may get distracted by this tangent and head to an auction before they’re really able to know what a real deal looks like.
The emphasis here is on setting up a basic system where you can consistently find profitable opportunities as laid out by Lonnie and Tony. Mobile Homes 101 if you will.
Just to differentiate, buying at auction would be more appropriate for someone in the business for some time, who can recognize a killer deal has the ready cash to exploit the opportunity.
Lyal
Re: Back to the subject… - Posted by Phil-TX
Posted by Phil-TX on October 10, 2005 at 23:09:46:
Lyal,
“buying at auction would be more appropriate for someone in the business for some time, who can recognize a killer deal has the ready cash to exploit the opportunity.”
This is who the post was intended to reach.
What else would you like me to say or do? Perhaps the post should be removed before someone goes out and overpays for something!!?
Why are you making such a big deal of this? You could just as easily point out elsewhere on posts nearby that buying a MHP “would be more appropriate for someone in the business for some time, who can recognize a killer deal has the ready cash to exploit the opportunity.”
I am a little confused by your response to my post.
No offense taken and I hope none given.
Best Regards,
Phil
No big deal at all… - Posted by Lyal
Posted by Lyal on October 11, 2005 at 19:59:22:
Sorry Phil, but you’re over reacting.
My point was simple. Although we cover a lot of territory on the forum here it’s primarily about investing in Lonnie deals, land home deals and, small parks ala Tony and Scott.
It’s been my experience that auctions are not a good place to prospect for the above deals. If you have the time and find a gold nugget once in a while, great. Go for it. Lets move on to something else.
All the best, Lyal