Using Deposits For Improvements ??? - Posted by Bruce

Posted by Dr. Craig Whisler on April 08, 2002 at 18:29:44:

…else. I am in Moreno Valley not Pasadena and have no interest in townhouses or condos. Sorry. Look for mobile land anywhere that it is zoned for such. Contact the local building and planning department for such info in your area of interest.

Regards, doc

Using Deposits For Improvements ??? - Posted by Bruce

Posted by Bruce on April 07, 2002 at 17:08:36:

I spoke to a very busy mover who does his own land home deals on the side… He told me he sets up the homes on his lots and begins showing the home without the land improvements are done…

When he finds a buyer he uses their deposit to improve the land… (With their permission of course)… Or he will subtract the improvement costs from the selling price and let the new buyers get them done… I think I like the second senario better…

He said the key to making this work is finding a nice lot and using your money on the cosmetics buyers like, rather than the improvements that you can’t see…

He says he can do 2 to 3 times the number of deals this way with the same amount of cash…

In my county they give you six months from the time you set up your home to get the improvements done… Seems like that would be plenty of time to find a buyer…

Doc and Jerry et all… Anybody ever try this approach to mobile/land deals… How did it work out… TIA… Bruce

E Tu Bruce ? - Posted by Dr. Craig Whisler CA

Posted by Dr. Craig Whisler CA on April 07, 2002 at 19:27:42:

Land and mobile combos are my thing here in CA, but I rent rather than resell.

This guy has some great and novel ideas and I believe they will all work as advertized. In fact I just might try one myself.

The only possible problem that comes to my mind if you are to use the sellers deposits to install the improvementws is that a large deposit would be required. It now costs about $10k-$12k for my lot improvements. I guess any time you can work on someone else’s nickle it is better than using your own. Even if you can only use their nickle when it costs 10 or 12 cents, a little is better than none.

The second senario may be more to your liking but I think it will be harder to sell to your customer. They won’t know anything about how to do this. How would you feel if you went to buy a new car and the dealer offered you a kit with all the parts for you to put together? I would do the improvments myself and add something extra for my time to their tab. You won’t need to really do anything. You will just hire subcontractors. It won’t take much of your time and you will learn a lot, besides getting paid extra for it.

You found a live one Bruce. Try it, you’ll like it.
I’d give this guy 5 stars.

Regards, doc

Re: E Tu Bruce ? - Posted by Glen SoCal

Posted by Glen SoCal on April 08, 2002 at 18:03:31:


I believe you live in the Pasadena area. It’s been a while since you posted me about buying townhouses/condos instead of houses for cash flow out here.

My question is, where do you locate land for mobile homes around here? I don’t need to know exactly of course, you could even head me the other way. I’m just curious about the general description of where.

Thanks, Glen

Improvement Cost Comparison ??? - Posted by Bruce

Posted by Bruce on April 07, 2002 at 22:41:56:

Doc-Improvement costs in North Florida are about 1/3 of what you quoted for California improvements… Which is not surprising as real estate costs are so much higher on the left coast… Here is the breakdown…

Well- $1000 to 1500 (depending on how deep they need to go)

Septic-1000 to 2000 (depending on if you go with a fiberglass or concrete tank) (Also if you use a traditional drainfield or the EZ Lay system)

Power Pole-$500 to $1000 (depending on how greedy your electrician wants to be)

Move on permit- $200

Home inspection- $60

Driveway-$300 (Around $300 per hundred feet)

I have already purchased the lot (1.16 acres for $1000 from a real motivated seller, but $1000 MH zoned 100 x 80 lots are common in this area)

Was wondering how these numbers compare in other parts of the country… Anybody ???

Doc & Jerry-Thanks for all the great info… Sounds like there is more than one way to skin a cat… Sorry Samantha… Just joking I have 3 of my own and 4 dalmatians… Pray for me…

Doc-Brutus was just misunderstood… :slight_smile: Bruce