MH in SoCal - Posted by Lihi CA

Posted by michael c on December 21, 2000 at 03:11:28:

i have often wrestled w/ the same basic question on yeilds and returns. the calculator results seem to be misleading even taking into account time value of money.

MH in SoCal - Posted by Lihi CA

Posted by Lihi CA on December 16, 2000 at 14:13:54:

I’ve heard the prices for MH are higher here in South CA.
There are ads all around for MH selling for $20K to $60K
Are theese the CA prices?
Didn’t get Lonnies book yet, can I just approach to PM requesting if there’s smthg for sale/rent in the park?



S. CA or any other market for that matter - Posted by Dirk Roach

Posted by Dirk Roach on December 16, 2000 at 16:11:24:

Hi Lihi,
Markets vary not only from local to local, but rather from street to street.
I’m in San Diego, and I can tell you that the average Lonnie type mobile going into runs you around 5 to 6k.
Which you sell for what the market will bear.
I have been consistently doing these deals here for over 2 years. With average yields in excess of 70%.
however like anything, some areas have more readily observable opportunities than others.
There is always money to made anywhere, it’s just how hard you want to look for it.
I’m glad that you mentioned that you ordered Lonnie’s books, as they are a great resource and teaching tool for the understanding of this particular niche market.
However once they point you in the right direction, I would suggest a comprehensive market analysis. Really that is the only way to determine what you are going to buy and sell these mobiles for.
And those are two base pieces of data that you are going to need to be successful in this biz.
Certainly I would talk to PM’s, they can give you an understanding and a pulse of what is happening in your market as they are there knee deep in it.
But don’t leave out other vital resources also. Such as Apartment rates, employment, neighborhood, crime etc.
It’s intergraded and all comes together forming the marketplace.
Hope that helps,

“Yield/Return” Question for Dirk - Posted by WayneMD

Posted by WayneMD on December 18, 2000 at 08:26:01:

Dirk – Forgive my ignorance, but does the term “yield” refer to the amount returned on principal per year or over the life of the note? For instance if you get a 70 per cent yield on a $1,000 two-year note, does that mean you are getting a return of $700 per year or $350 per year for two years?(I know, this is way oversimplified, but I hope you understand what I am getting at).