I’m staying in #14 in Sun Valley. Randy, the owner, shot down my net lease offer. I think I might be able to get the first motgage holder to accept less than full amount for his mortgage. Perhaps I can use private investors to over-finance the park and allow me to stick some mini-storage and a laundry onsite. [sigh] Nothing good comes easy.
Look for my ad in the local paper for my phone number. After all; I do: buy, sell, and finance used mobile homes!
TX investors-Chad, CharlesK, DonR, EricC… - Posted by Lynda Hamid
Posted by Lynda Hamid on July 20, 2001 at 10:04:30:
Guys-what’s the straight story? I’ve gotten 3 different answers from my San Antonio “authorities” on the need for and extent of a TX license to buy/sell MHs. One said I need a dealers license after the second sale; one said as a married female in TX I could not even buy any real estate unless my husband’s signature was on it (which I know isn’t true because I already own 2 SFH without it); one said I needed to take a course of several weeks, take a test and pay fees annually (that’s a real estate license, isn’t it?)
What do I need, and how do I get it? Thanks! L
My husband and I own a mobile home transport and installation company. He took the course in Austin. It’s 3 days and doesn’t cost that much. Then you have your bond and insurance(we use a good company out of around the Houston area). You have to pay for your bond and insurance and license renewal each year, but for the kind of money you can make, it’s worth it.
Lynda,
I too have experienced frustration with the state on various issues. When I first called the state they told me everything I needed to do in order to be legal: take a 3 day course through the state in Austin, get bonded and have liability insurance, and pay the annual dues. This seems to be the general requirements. As far as specific requirements are concerned you will probably get different answers from different people each time you call. In this case I just document who I am talking to and who their supervisor is. I know it’s very frustrating but at least you are trying to go about it the right way. Call Austin again, register for the next classes, request that they mail you the laws/policy (it’s free), read through it and if you have any other questions let me know. I’ll do what I can to help. As far as the bonding goes don’t panic when you get an annual quote that is high. The first company I called told me in order for them to set up the bonding with me it would cost $5000 per year. When I got up off the floor I called several others and finally found an independent agent who would bond me for $250/year. Go to the independent agents. They want and need your business more than the big companies do. Any other questions, let me know. If I can’t answer them I know of at least 10 other people who can. If you have any general questions that aren’t specific to Texas there are some people here who really know what their doing and have been doing this for a long time. Last thing and I’ll shut up. If, in the future, you are in a big hurry to get the title transfered (and you will be) then when you call and request that they send you the laws ask them to also send you the paperwork for the forms that are specific to a 48 hr. title transfer request. It will cost you $75 but it will be there the next day. Good Luck Sorry I took so long to reply. I’ve been out of town. Chad TX
Re: TX investors-Chad, CharlesK, DonR, EricC… - Posted by Jim - HouTX
Posted by Jim - HouTX on July 20, 2001 at 12:08:42:
Linda, I’m trying to find out too…here’s a link I found today…I’ve been busy at the J-O-B so haven’t had a chance to look yet. If you find out before I, please email me would you?
Charles,
Are you doing Lonnie deals right now. If so, who did you get your bond/liability ins. with and if you don’t mind me asking, what is the cost. Chad
The short answer: No. The long answer follows.
Over the next few days I'll be moving from Dallas to Stephenville. I purchased a SFH near the college and did my first rehab. I've got a nice lady willing to pay rent starting August 1st. No advertising, she walked by and 'fell in love' with it. I went over budget on the rehab, but it has increased my self-confidence, so I don't feel bad. $300 positive cash flow helps a lot too.
I saw an article here on CRE written by Lonnie and ordered his books. While I was waiting for them to arrive I finished Stephen Cook's course on flipping homes. I'm about half-way through Lonnie's second book and figure I'll place ads in the local newspapers as soon as I settle in Stephenville. I'll be renting a MH.
I am currently negotiating with the owner of 3 lots with 2 vandalized and abandoned MH on them. I figure I can sweep them out, slap a front door on each and sell them as fixer-uppers on a note, then get some lot rent. I'm certain I can them buy pretty cheap. Probably less than 18k for the caboodle. The owner seems to know the same negotiating tricks I know. Currently we seem to be waiting each other out. He doesn't have the lots up for sale, though. I saw the homes and looked him up through the tax rolls. I'm willing to negotiate, I'm sure he'll name a reasonable price. :)
The MHP I'm moving into is up for sale (300k) and I'm in negotiations to purchase it. The current owner is motivated, but I'm not :). I plan to follow the advice of others and net lease (w/ option) the park, pre-paying the first years lease and asking for a monthly credit for the down payment. The owner really wants to get away from the daily management and I get the impression his wife is contributing a lot of her time too. The lease should allow me to get a better handle on the what the expenses and real income of the place as the owners are operating on a cash accounting. Keeping 2 sets of books and not really keeping 1 set (wink, wink). I plan to incorporate the park and keep accurate records. This will increase the marketability of the park and I believe I will come out a hero to the owner. With the lease he'll feel more confident he won't be getting the park back in a few years.
I believe I can separate the rental MH titles from the lease. The first lien holder has approved this in the past. He and the owner are very close. This will allow for up to 16 Lonnie deals in my own park. The park owner likes to rehab trailers for fun [shrug] (to each his own). So I should have a supply of rehabbed homes from a seller who is realistic about what I am willing to pay for them. This should fill that third lot above.
Just to keep my plate full and to get to know the locals, I have worked out a financing option with the handyman who worked on the rehab above. I'll finance home repairs for homeowners who need repairs, but need monthly payments. He'll originate the notes and I'll buy them from him. This should allow him to seek more jobs and keep about 5-10k earning 24% return for me. I figure I can create a mailing list from the homeowners and offer more financing and prospect for leads for homes for sale.
Charles,
Sounds like you’ve really done your homework. You will be very pleased with the business opportunities in Stephenville. I lived there for 4 years while going to school. There are plenty of buyers coming through. Good Luck even though it sounds like you don’t need it. I have some friends still living there and go up to visit every once in awhile. I would like to stop in and see you once you get settled in. Let me know when you get there. Chad TX
