Posted by Dave(Al) on September 07, 2006 at 15:05:49:
I wouldn’t go to Talladega Co. to invest. The area your in is the closest area with restaurants, stores, good schools, etc. anyway. You should be able to do well very close to home.
Newbie Questions from a long-time lurker (longish) - Posted by Scot (AL)
Posted by Scot (AL) on September 06, 2006 at 11:34:49:
I recently sold my small business in Tennessee and moved back to my home town in Alabama. Although I still work a full time job, I find myself with a lot more free time now to pursue other money making ventures. I have long lurked on this forum, read both of Lonnie’s books (very informative!) and I am ready to GOTC!
The area that I am in is next to a large lake and there are many marinas there with MH lots (6 within a mile or 2 of my house!). Some of the homes are occupied year round while others are weekenders. Most of the homes appear to be older (late 70s early 80s) with pretty high asking prices, $12k-18k. Yes, I realize these are just asking prices, but they do seem to be pretty high for the units involved as similar units away from the lake are much cheaper.
Questions:
-
Do you guys find it typical for MHs near “resort” or recreational areas to have higher selling prices compared to others? I.E. does location matter for MH values like for houses?
-
Are there any special pitfalls or opportunities when dealing in area like this?
-
Since most of the homes will be older than 1990, in AL there are no titles involved. How do you guys secure your loans on these with no title? File a lien on it at the courthouse?
Thanks in advance! =)
Re: Newbie Questions from a long-time lurker - Posted by Dave(Al)
Posted by Dave(Al) on September 07, 2006 at 09:32:04:
What lake? There are huge differences in the demographics around the lakes.
If you are near the Honda plant I would think you
could sell anything. Coosa County on the other hand is almost deserted.
The marinas vary a lot too. I worked with a guy who also was handyman at a park on Lay Lake that the Bham Ski Club hung out at in the summer. They usually let them go back at the end of season. Don’t have any details as I wasn’t that interested then.
Most of the weekenders I know personally on the river are not typical Lonnie customers. Many own a business or have very good jobs. That said they might be good customers for as is all cash deals but
not till spring.
Location, location, location… - Posted by Dr. B. (OH)
Posted by Dr. B. (OH) on September 06, 2006 at 20:11:03:
Scot
Although none of the parks I work in are in a resort type area, I find location to be very important. If you are a gazillion miles away from gainful employment or entertainment, prices are lower. If the park is ugly, prices are lower. If the park is just as nice as others but surrounded by a crummy community, prices are lower.
That being said, you just revealed an opportunity in your post “…they do seem to be pretty high for the units involved as similar units away from the lake are much cheaper” How 'bout buying the much cheaper ones, even cheaper through Lonnie’s methods and moving them to the high rent district. I’ve often thought of doing this with houses but they are not on wheels like MoHos.
Happy Trail(er)s,
Steve
Re: Newbie Questions from a long-time lurker - Posted by Scot (AL)
Posted by Scot (AL) on September 07, 2006 at 10:55:05:
The lake is Logan Martin and I am on the Pell City side. You do raise a good point about working the Talladega side for the Honda plant though.
Re: Newbie Questions from a long-time lurker - Posted by Dave(AL)
Posted by Dave(AL) on September 07, 2006 at 13:01:33:
Your side is a very nice area. I would think the location would increase the value some as it is close enough to jobs for Lonnie customers and weekenders too. What are lot rents? Being close to the water is only good spring and summer.
You’ll have to learn your market but it has good demographics even if far from the water.
Re: Newbie Questions from a long-time lurker - Posted by James (Ala)
Posted by James (Ala) on September 07, 2006 at 11:53:27:
I would think the Honda workers make more money than most of the “LD buyers” around here. How does that affect the equation? Does it make DW’s more viable for Lonnie-ing than on, say, the Pell City side?
James (Ala)
Re: Newbie Questions from a long-time lurker - Posted by Scot (AL)
Posted by Scot (AL) on September 07, 2006 at 15:57:16:
From the ones I have checked, lot rents are very cheap (around $100 a month), so it won’t kill me if I have to hang on to one for a bit. I have only checked two, so I’m not sure if this is typical of these kinds of parks here, but I bet it is. I did find a park where the lots are owned and those lots are very expensive to buy (60kish on the water.) Not sure I’ll be doing much there.
One thing to consider from the weekender point of view is that some of these people aren’t recreational skiers/boaters but fishermen who will go out year round, weather and lake conditions permitting. Don’t know of that’s a realistic factor, but it’s a thought.
Re: Newbie Questions from a long-time lurker - Posted by Scot (AL)
Posted by Scot (AL) on September 08, 2006 at 16:56:03:
{I would think the Honda workers make more money than most of the “LD buyers” around here. How does that affect the equation? Does it make DW’s more viable for Lonnie-ing than on, say, the Pell City side?
}
Probably so, but that doesn’t mean that their spending habits are any better. =)