Posted by Auctioneer on July 23, 2011 at 04:44:16:
I suppose you have another YouTube video to share with me, LOL… That floating tile was pretty funny!!!
Mobile home investing - Posted by chuck
Posted by chuck on July 06, 2011 at 17:23:36:
2 part question. 1) I can no longer find used mobile
homes in my area @ a reasonable price and I can buy new
MH’s @ $500.00 over wholesale. Avg price and set up
comes to $32,500 per unit. I own the park. What would
you suggest? 2) Any suggestions for financing?
Thinking outside the Wobbly Box - Posted by Auctioneer
Posted by Auctioneer on July 07, 2011 at 20:53:11:
I read this post the other day and it keeps going around and around in my brain. My first thought is no way do I want to have 32,500 invested per unit but then times are not what they used to be. I remember some 20 years ago buying small dbl wides from the factory…24 x 40 and we had about 20 - 25k in those.
And then I realize that I recently purchased an 87 model 14x70 2/1 that was in relative good condition and moved it on my lot. I now have 15,000 in it not including the land and I only paid $1400 for it. So even if it were free I’d have too much in it. Of course I put a new pkg 2 ton heat pump on it that cost me $1400 plus labor which was probably a mistake…
I’m like you, not sure what the answer is??? What I used to like about the MH business was that I didn’t need financing, invest 8k and sell it on time for 12k at 10% and collect lot rent for life. But the game has changed. Hek, I’ve checked into solar panels instead of putting MH on the lots. With tax incentives and the premium rates of green energy I come out about the same and don’t have to deal with renters, maintenance, septics, etc.
Re: Mobile home investing - Posted by Shawn Sisco
Posted by Shawn Sisco on July 07, 2011 at 10:11:07:
You bring up a great topic for discussion among MHP owners. I too have seen the cost of used MH?s rise in my area, and have bought some new homes to infill. As to your question about financing: Local Banks, Private Money, or your money have been your options. Floorplan Lending is still very tight and really would only serve to purchase MH?s from Manufacturers ? Floorplan must be paid before home is occupied.
Legacy Homes Ft.Worth TX offers some rental house financing and some retail financing options on their homes. 21st mortgage offers a rental financing program for Park Owners buying Clayton products.
Those are about the only options that I know of. If you learn of other avenues- please share your findings.
I would advise that you get your dealership licensing stuff in order and that you attend the MH industry trade shows in order to stay in the loop on this project, you simply must wring out every dollar of costs that you possibly can, and while a local dealer may not have much mark-up ? they may handle a product line that is too expensive to start with.
Not much has been posted about these topics on this forum as most here operate in ways that allow them to utilize cheaper MH?s.
Re: Mobile home investing - Posted by BB
Posted by BB on July 06, 2011 at 19:31:20:
Where are you located?
Re: Thinking outside the Wobbly Box - Posted by Gary
Posted by Gary on July 19, 2011 at 23:21:50:
Auctioneer, can you direct me to more information on the solar panel option. Thanks
Re: Thinking outside the Wobbly Box - Posted by Brenda (OH)
Posted by Brenda (OH) on July 11, 2011 at 10:49:29:
can you put wind generators above the solar panels?
Re: Mobile home investing - Posted by chuck
Posted by chuck on July 06, 2011 at 20:55:52:
Slidell, La
Re: Thinking outside the Wobbly Box - Posted by Auctioneer
Posted by Auctioneer on July 23, 2011 at 04:22:18:
Gary, my apology for the delayed response. I’ve been away for three weeks. The landscape has changed since I last posted about solar panels. It would appear that the 30% tax credit is not likely to be extended beyond the end of 2011. Projects approved and underway will qualify. Worse news is the Premium being offered by a 10 yr contract will likely be changed as early as next month. I’m just guessing that it will be cut in half. I’m in the TVA district which is currently paying $0.12 over the going rate. If rates increase the buy rate also increases plus the premium for a guaranteed 10 yrs.
Unfortunately, without both these incentives the financial motivation is just not there. Personally, I’m not a fan of Gov’t subsidized programs but if it is being offered and it makes sense for me then I’m going to try it. If you are in a position to act pretty quick, it may still be feasable. Although the the time for for DD is cut dangerously short. I will shoot you an email with my contact info.