Posted by Kevin (GA) on July 21, 2001 at 06:04:18:
Brandon,
Isn’t it funny how all the older and cheap MH’s that I see or hear about are brown?
Any, I’m no expert here. But, I would suggest purchasing Lonnie’s book Deal On Wheels. It is full of very insightful information on how to proceed. There are so many issues to look into that it would be very difficult to cover in a simple post.
I have been a real estate appraiser for years, and let me tell you, I’m just now beginning to learn how to think like an investor. Mh’s seem like the best way to start because of the low exposure to loss. I have found Lonnie’s book to be very, very helpful. You’ll want to read it twice because it is so full of information. It’s an easy read too.
While you’re waiting for the book, I would start out by seeing what condition the MH is in. How much to pretty it up (paint, cpt, etc…) Can it stay on the lot? Do you need a dealer’s license to do this where you live? Business License? What’s the market-is there a lot of vacant mh’s for sale in the area? what’s the rent for the lot? What are the MH’s renting for?
You see, there are so many things to think about and learn and the book will really help. The most important thing to know in my mind is to start learning the market.
POSSIBLE first MH transaction, please advise…? - Posted by Brandon Treat
Posted by Brandon Treat on July 20, 2001 at 21:05:25:
Hello to all, some may recognize my name from the main news group where I’ve posted now and again over the last year or so, though I haven’t in a while… In any case my current situation is that I’ve been thinking about the possibilities of getting into mobile homes as part of my low-end beginner budget getting going in real estate. I’ve been reading the posts about them on this mobile home specific board for a month or so now and have found some very valuable information for which I thank everyone who contributes on a daily basis, and has led to my seriously considering trying to get actively involved in the local mobile home market.
My question comes here, I have seen a couple mobile homes in decent parks around with price tags from 8 to 15 thousand and have thought maybe if I lowballed an offer and they needed it bad enough I could work something out but today I noticed a trailer in a park that wasn’t the most beautiful but the ‘for sale’ sign in the window said “$1500 OBO” obviously piquing my interest. The trailer itself was brown and ugly and seemingly fairly old, but at that price as long as the place wasn’t about to just fall over I ought to be able to make at least a few bucks here and get some much needed experience under my belt shouldn’t I? And most importantly, I’m wondering what are the most important questions to ask over the phone or in person when dealing with mobile homes? I know for the most part you basically just want to find out, as you would with any property, if you’re dealing with one of those wonderful yet elusive ‘motivated sellers’ whom make up my dreams so often now. When dealing with mobile homes should I try to find out year and model numbers? Obviously rooms are important but what are the trailer specific things I need to watch out for?
Also any advice in general in regards to getting a start in mobile home investing would be sincerely appreciated.
Sorry for the length, Thanx for taking the time to read.
Kevin is right. Education first Brandon. If you aren’t sure of what questions to ask, a few posts are not enough to really help you. You need the total experience and wisdom Lonnie includes in his books Deals On Wheels and Making Money With Mobile Homes. Each book sells for about $30 here at this site. This small investment will put you in the driver’s seat. Lonnie will teach you what to say and WHY.
Motivated Sellers are not so elusive. People need to sell for a variety of reasons. Mobile home owners are no different. In fact, they have few options when selling and may be even easier to motivate (so long as they acknowledge reality). Many times your first call may yield very little but when you use Lonnie’s “walk-away” technique, you will likely receive a phone call at the end of the month (lot rent due) and things will have changed considerably.
You may have found a deal or you may have found a nightmare for $1500. Lonnie will teach you how to inspect the home and the park to cover your bases so as to be able to make that determination.
Don’t get caught in the cycle of seeking cheap homes. Learn to use Lonnie’s system to locate motivated sellers, not homes. They are out there. You just need to learn how to let them know you are out there too.