NC...nothing under $6,500 in park..now what? - Posted by Bobby

Find cheaper movers… - Posted by JHyre in Ohio

Posted by JHyre in Ohio on October 18, 2000 at 08:35:33:

Lots of people around here want 3k to move, but others do a good job and settle for less. The price range I was talking about IS for 1990 or newer repos, though they usually need work. Avoids the old home issue.

John Hyre

Just FOUR? - Posted by JHyre in Ohio

Posted by JHyre in Ohio on October 18, 2000 at 08:23:17:

You need to hit more like forty! Get up and DO IT. This is not get rich quick…it takes time, effort and nurturing…and to he!! with rejection. I empathize with personal issues of health…but this business WILL take a certain amount of work regardless of family, job and other issues. If you persist, you will suceed. If you give up- for WHATEVER REASON- you accept rejection and lose. I sincerely hope that you chose the former option, all difficulty notwithstanding.

Good luck,

John Hyre

Re: Find cheaper movers… - Posted by Bobby

Posted by Bobby on October 18, 2000 at 08:56:48:

Hi John,

So is what you are saying is…you are doing Lonnie deals but the price ratio is higher, instead of buying $1,500 to $3,000 MH’s you are buying $8,000 to $12,000 Mh and selling them for $14,000 to $16,000. Believe me what I see for $6,000 around is is ready dor the scrap heap…a $3,000 Mh looks like it was in a Hurricane and most likely was around here.

Best,

Bobby

Re: Just FOUR? - Posted by Bobby

Posted by Bobby on October 18, 2000 at 08:26:19:

Hi John,

I won’t give up…health issue could be terminal…find out Novemeber 14th.

Best,

Bobby

Not quite… - Posted by JHyre in Ohio

Posted by JHyre in Ohio on October 19, 2000 at 10:25:08:

I currently do Lonnie Deals at about $1500 to $3500 a pop and sell on a note in lower-medium grade parks. I am CONTEMPLATING moving into the sort of parks you describe in addition…though I am still in the planning as opposed to ACTION stage with respect to such parks…but brought them up as a suggestion to you.

Specifcally, I have a friend who was complaing about paying $850/month rent for his apartment. I found him a 1996 2BR repo in EXCELLENT shape for $7000 in a very nice park where such homes regularly sell for $16,000 to $22,000 cash and charge $200 lot rent. I got him the price as a favor, for no profit on my part. He is now interested in investing, but wants cash instead of cash flow…so we are going to look for similar deals, albeit in a lower price range which will probably mean that some repairs must be performed. I anticipate few repos in most “nice” parks and therefore the need to move some in. Obviously, finding them in place is a much better deal and what I generally look for…and probably how you should start until you’ve a bit more experience under your belt. Moves don’t frighten me (though I am waryily respectful of what’s involved!) 'cause I’ve been through a few and have some idea what to expect.

John Hyre

Re: Just FOUR? - Posted by JHyre in Ohio

Posted by JHyre in Ohio on October 18, 2000 at 08:33:14:

Bobby,

I wish the absolute best of luck…sounds like you deserve it. Where most people would be utterly consumed by such a spectre, you are out seeking info to better yourself and DOING. My hat is off to you, sir.

John Hyre

Re: Not quite… - Posted by Bobby

Posted by Bobby on October 19, 2000 at 15:51:11:

Hi John,

I guess my question is this…If Lonnie deals work for a MH bought for $3,000 and sell for $6,000…why is it that most on this site are opposed to buying a MH at $6,000 and selling it for $8,000. If everything is in proportion to Lonnie deals…why is the very low scrap heap MH the only what this system works? I am missing something her…Is it that the people in the Lonnie price range are trapped into this range and the other people in the next level up, 6K to 8K have more choices than making a Lonnie deal…someone explain as there is not much in site here for evern 5K let alone for $1,500…I stopped and talk to a guy…by the way his Business card read, " Used mobile homes bought and sold" He could have been one of us as it was in Virgina I stopped…we would only come down $200 on a $4,995, 1993, 3bed 1ba. he did say we would have it moved to a park for me for $150 but set up fees and I know from all of you, I am not to move a MH at my stage of my investment career…Am I trying to make this to hard or what am I missing here…Do I run ads? without owning a Mh like in DOW book…I am completely lost here in all this. I need to start all over like it was my first day as what I hear on this forum is not what is like in the real world around my area…so how do I adust to these higher prices and not one will lower their prices at all.

Frustrated,

Bobby

frustrated - Posted by Karl (OH)

Posted by Karl (OH) on October 19, 2000 at 16:59:51:

Bobby,

I?m frustrated just trying to read your post. You?ve got to get your thoughts better organized.

To use your numbers, tell me which is better: Investing $3k and selling for $6k (profit of $3k), or investing $6k and selling for $8k (profit of $2k)?

Either one of the above deals is good. But if you only have $6k to start with, like a lot of new people do, better to do two deals that make a total of $6k profit, than one deal that only makes $2k. Right? It also spreads out your risk a little.

I bought a ?96 trailer for $10k. Its worth $19k. I also bought a ?71 for $1500 that I?ll sell for around $8k. Looking back I wish I would have taken that $10k and bought four or five cheapo homes instead of tying it all up in one trailer. A trailer that I?m having trouble selling, by the way. I can?t sell the cheapo?s quick enough. And they aren?t scrap heap trailers, they?re in nice condition. They?re just older and smaller.

If you read a lot of posts here, we talk about the legwork it takes to find good wholesale prices. Run an ad. Build a relationship with park managers to get good referrals. Work on your negotiating techniques. WORK ONLY WITH MOTIVATED SELLERS. (Another investor is probably not a very motivated seller). This all takes time. One of the last homes I bought the seller started at $6k, after 6 six weeks of discussion I bought his home for $2k.

Yes, its probably a good idea to start back a the beginning. Reread Deals on Wheels a couple more times. Lonnie covers everything that you?re asking about. The only reason we recommend spending as little as possible is because we know you don?t have to spend more to make a good profit. But do whatever you need to do to put a good deal together. Just because all the advertised homes in your area are over $6k doesn?t mean you can?t buy one of them for $2k if you apply the techniques we discuss here.

Take a deep breath and read DOW?s again tonight.

Karl Kleiner