Posted by Elton Allen on October 20, 1998 at 08:10:27:
Hi SRH,
Here is a couple of things that I would suggest. You are on the right track by searching, but remember you are looking for the motivated seller not the motivated buyer? When you purchase these properties you will be looking to re-sale them and do “owner financing” to make a profit. It looks from the few numbers that you have given that there would not be a profit margin at all. If you purchase this mobile home at the current price you will probably hurt yourself rather than improve your situation?
I would wait for the materials that you have ordered, because when Lonnies books arrive they will show you how to purchase MH’s with no money down, what to look for as far as price range, and they will also show you what the “bread and butter” MH’s are. They’ll also show you some very creative stategies as well. It really helps when you know what to look for and how to go about aquiring that “right” MH. The way that the MH business works is based on finding the right property at the right price in the right area, all of which are explained in Lonnies books. I hope that this helps a little.
Newbie needs advice - Mobile Homes - Posted by SRH (CA)
Posted by SRH (CA) on October 20, 1998 at 02:33:12:
I have read almost everything on this website, and have ordered “Deals on Wheels”, but I won’t get it for two weeks.
I was already out poking around, and found a man selling his mobile because they are moving to a new city. He stated that they originally were asking $10,000., and received an offer, but refused it because they were not quite ready to move. They are ready now, and he has lowered his asking price to $7,500. I took a quick peek at it, and it looked to be in pretty good shape. They state that it had a new roof recently done (still under warrantee), and it has a shed with a washer and dryer included. It’s a single wide 1964 Top Hat (?).
Should I wait till I get Lonnie’s books, and see how motivated this guy really is? Or, should I see what I can do with the help of all you wonderful people on this website?? Also, I have NO $ to work with. It was a stretch just to buy his book. (I have a 1 yr. old baby.) Any advice would be appreciated.
I have tried to get ahold of more info. locally, but the liabrarys and such do not seem to have any thing.
Also, the park that it is in is open to anyone. There are only four parks in the immediate area, and two of them I know for sure (possibly three) are seniors only. Is there drawbacks or benifits with going with one or the other? My first impression is to stay away from the senior parks because they are so picky. What do you all think?
Third times a charm! Sorry for the delay in responding. I thought I had posted one yesterday, but I must have accidently wiped it out. I didn’t realize how I did it, till I did it again just a few minutes ago. Oh well. Live and learn.
Thanks for all the great input. I am following your advice, and waiting for the book to arrive. However, I am still checking the paper just to get a feel for what is out there. I am also currently reading some books re: sales, and another by Wade Cook.
In reply to some of the questions that were posed, I was hoping for owner financing or a note. I don’t have the $ for an outright purchase right now, but I could possibly borrow a small amount, or perhaps find a partner. Know of any one in Sacramento or eastern outlying areas?
I guess the reason I was interested in this mobile, was because of it’s condition. Very good shape, and very clean. I would never have guessed that it was as old as it is. I also thought that if the man selling was willing to go down $2,500 on his price with out me even really asking for it, who knows how low he may have gone - especially if he’s already starting to make payments on a house elsewhere.
I did have another question. All most all of the mobile parks I have seen in this area have the mobiles packed in very tightly - like sardines. Is this how it is in most areas? Or, are these just bad parks?
I appreciate all of the responses I have received. Thank you all for taking time out of your busy schedules to answer this newbie’s questions.
Re: Newbie needs advice - Mobile Homes - Posted by Dirk Roach
Posted by Dirk Roach on October 21, 1998 at 19:59:06:
Hi SRH,
Well Upon first glance at your post this I can see were some might construe this as a dog deal. But I have a couple questions. Would the owner of the MH be willing to sell it to you on a note? Or would he be willing to give you an option?
Personally I think that $7500 is a bit high, but I don’t know what market your in.
I’m in the San Diego area, and the magic number here is around $3k (wholesale) and average retail around $8k to $12k. On the “classic Lonnie” deal. But like I said that is roughly the idea in my market, and of course yours could be very different.
I would wait for the Lonnie Boooks. You don’t want to wind up to your knees in it. Don’t think that this is the only deal that is going to come along. I have found here, that there are lot you just have to walk on if it just isn’t there.
Good luck and keep us informed about what you decide to do.
Re: Newbie needs advice - Mobile Homes - Posted by TIM (OH)
Posted by TIM (OH) on October 20, 1998 at 11:44:55:
Although I don’t want to stifle your progress, I would have to echo Elton’s advice and wait for Lonnie’s materials to arrive. It appears (to me) that you are wanting to jump on the first deal that comes along and seems somewhat negotiable. I could be wrong, but this is not the Lonnie Deal that I’m looking for unless you can buy for $2,500- 3,000 and resell for $6,000-8,000. Lonnie does not recommend buying mobile homes of that age because it creates a negative image in the minds of the buyers you are courting.
One final question…How do you intend to buy this mobile home for resale. Do you have an investor or family members with money that can invest with you? Or are you intending to arrange owner financing?
With regard to Senior Parks, I would not get involved in that situation because it significantly limits your market.