mh values - Posted by brian

Posted by brian on October 09, 2003 at 07:17:52:

Advice taken…thank you.
Trying this in MA and rarely seeing any post from New England (with its lack of large MH parks and high prices)makes me wonder if Lonnie deals are doable. The low price MH are pretty much junkers/rehabbers and need to be moved. I would like to use my brain rather than my hands in this business, so rehab is not the first option as a newbie. I will stick with this. This site and your posts in particular inspire me. Thanks again.

mh values - Posted by brian

Posted by brian on October 08, 2003 at 14:58:16:

I’ve read both of Lonnie’s books. Other than talking to PM, sellers and dealers, are there any other ways to determine the market value of mobile homes? Comps are available for single families. If mobile homes are personal property, how do you determine value? Do real estate agents have comps for mobile homes? Very confused. Your respones would be greatly appreciated.

Now go out and kill something. - Posted by Dr. Craig Whisler CA NV

Posted by Dr. Craig Whisler CA NV on October 08, 2003 at 17:11:08:

We can’t teach you values.

You’re looking for a simple answer. The reason you can’t find it is that it doesn’t exist.

There are mobile home blue books just like for cars. They are used primarily by lenders, insurance companies, probate appraisers etc. They are totally useless for buying or determining value.

They can be very helpful as a sales tool to show prospective buyers what our mobiles may be worth when we are trying to resell them, at retail prices.

This issuse has come up dozens of times. There is no silver bullit answer. You already have all the information on determing value that you will ever get. Make the most of it. That is what the rest of us have had to do. What you seem to have failed to do is do your homework. That is why you still don’t know the values in your area, despite already having the best information we can give you.

You just need to pound the pavement. After you have looked at 50 mobiles for sale by private sellers and read this board for 6 months you should be your own expert on value.

Remember that private sellers usually want about 2-3 times what we, who are in the business, generally pay.

When discussing ‘value’ remember also that there are wholesale and retail values. It is confusing when you first start out because you talk to a few sellers and they want $25k + for their mobiles, then you read that investors on this board are buyihg similar ones for 3k-5k for.

I don’t even focus in on value. I’m not even sure its a good idea. I just look for something that I can sell for twice what I can buy it for. I mean if a mobile is valued at 3k and it is offered to me for 6k the question I ask myself is not what is it worth. I ask what I can sell it for. If I can sell it for 12k then what do I care if it is worth 3k or 6k? I don’t even need to know its value if I know what I can buy it for and that I can sell it for twice that amount. I just buy for 1 dollar, sell for 2 dollars and am satisfied with a 1% profit. Capish?

We are just playing a numbers game. We know that we have to make LOTS of offers to get any acceptances. 19 times out of 20 they refuse our lowball offers (at least at first). Those 20th ones, that are actually accepted, can make you rich over time.

The key to getting low offers accepted is in finding desperate or highly MOTIVATED sellers. If you are having no luck getting low prices then you are just talking to those 19 out of 20 sellers who are not desperate (yet).

Vacant mobiles that have been consuming space rent for a year or two tend to produce some really motivated sellers.

Park managers seem to be pretty well plugged into the whosale market. Go far out of your way to cultivate good relationships with PMs. Don’t be afraid to buy a few donuts and to privately offer them a referal fee of $100-$200 for each WHOLESALE deal that they refer to you that you actually buy.

There are only two really dificult things to master for all newbies. The first is in getting PMs to let you work in their parks and the second is in finding sellers who will sell to you at wholesale prices.

I often say that you rarely can find great deals. You don’t just find them, you have to MAKE THEM, out of ordinary deals, through skilled negotiation. Learn all you can about negotiation on this board and bide your time.

If you persist long enough you will eventually overcome both of these obstacles. It takes time and effort. I well understand the beginner’s frustration at trying to put their first deal together. I remembered how frustrating it was for me when I first started. I am reminded of the cartoon of the two vultures (or were they eagles?) sitting on a tree limb and one is saying to the other “I just want to go out and kill something”. That’s how agressive and impatient I felt when trying to make my first deal.

Value is a very hard subject to get a handle on but it is of critical importance. You have to buy low and sellers resist selling low as if their lives depended on it. Noone said this is an easy business. We said it is a profitable business, but you have to do your OWN homework. There are no shortcuts. The mere fact that you have made this post is a clear indication that you simply haven’t paid your dues yet, by putting in the required time and effort to learn values for yourself.

I guess you could say that this is something that we really can’t teach you.

Values are something that you just have to learn on your own.

Ok now Brian, go out and kill something.

Regards, doc