mobile home investing problems
anyone familiar with Lonnie deals may be able to help me out here. As Lonnie suggests in his book Deals On Wheels,I have been to all the local park managers and explained to them that I would like to do business in their parks and would guarentee their lot rents but have been turned down repeatedly. I decided to go to the new mh dealers and see what they had on their lots that were in decent condition that was a trade-in or repo. Found alot of good deals. Thought I would buy from the dealers and resell for a profit and take a note back for 12.5 or 13 percent. Of course the home is still on the dealer's lot and not in the park. If my buyer wants me to move it to a park of their choice, I could finance this into the note also. Will this work or am I stepping into a problem? Any help would be appreciated. (this type of deal takes me out of the loop with pm's and my buyer only has to deal with them).
huntin1,
Glad to meet you.
I guess that part wasn't covered in the book.
First do not buy from dealers, find people who are in trouble. This is relatively easy, an ad in the local papers should do this.
You will find that the lenders, will short sale mobiles at drastic reductions. Example $35K owed, $11K purchased from lender.
Always shoot mobile lenders like Greentree low ball offfers, they will discount at the drop of a hat. If you purchase a mobile this way then check on putting it in a park.
My dealings with Park Managers is that they go to some school that trains them to be placed on 'Pedestals' above the rest of us. The smart ones know the lenders discount heavy so they are the ones buying or have someone they contact to buy the mobile. Of course they are compensated for there gesture of good will.
What I have said here maybe is not covered in most books, but you might be the person they contact when they hear of someone in trouble, understand. Then you can build a repoir with them. You will then have plenty of deals.
Welcome on board this board, keep posting you will be suprised how much you can learn here at TCI.
John $Cash$ Locke