MOBILE HOMES IN TX IS A BAD BET!
I was in the biz for years. I saw the slow times and the great times through the cycles that is inherent to the industry.
NEVER in my life have I ever seen anything like this. This "drop off" decline in overall MH sales is not part of a cycle.
With all of the Law changes it is unlikely that it will ever fully recover.
Here is a good clue for you. Pick up a local free paper (rack rag). Open up to the Manufactured housing/mobile home section of the paper. there may be one to three pages of classifieds.
(two years ago they had to have TWO papers in one. One HUGE section for mobile home and a little side paper that had the WHOLE rest of the paper in it.)
Now,...open up to the Real Estate Section and you will notice that it is cram full of classifieds.
What this tells me is that to get into ANY kind of investment into mobile homes would be financial suicide, especially if were talking multi unit purchases.
If you have no experience selling MH then you need to stay out of that game. You can get stuck with unsellable goods if you are not knowledgeable and careful.
You've been living on the wrong side of the deals. Not trying to talk you into anything, but the fact remains, used MH's are the least expensive type of housing you'll ever find. For a super primer on how, I strongly recommend Lonnie Scruggs book Deals on Wheels and its companion, Making Money with Mobile Homes. They Are real Eye openers.
Good Luck,
Shawn(OH)
What law changes are you referring to?[ Edited by bigcape on Date 12/19/2003 ]
You guys evidently are not doing business in Texas. The market is flooded with reposessions at a time when interest rates are very low.
Think about this for a moment: In a market where interest rates are around 9 to 12% there are a whole bunch of people (that have a fair credit rating) that can't really afford the payment on a 2100 sq ft brick home. Okay let's drop the average rate to 5.5 to 6.5%. Now you've lost your primary buyer to sticks and bricks.
The problem lies in the fact that with lower rates comes tighter buying practices by the lenders. Yes, they become more affordable than ever. NO, the average mobile home buyer will not qualify for a loan. The guy that DOES qualify, does not want a mobile home.
In todays market I can get a brick home for the same monthly payment as a DW mobile home on land. It's easier right now to qualify for site built than for MH.
I don't know about your area but in Texas the market is in real trouble.
There is no secondary market for lenders to be able to turn their loan portfolios, so, there is a limited amount of money. That, coupled with low interst rates and high and tight lending, makes it a rough ride.
People will always WANT mobile homes. The problem is that the ones that want them >>****Can't buy a stick of gum on credit****<<
I recently quit my job sellin mobile homes. I quit because I had a buyer with a 777 credit score, who had over 1 millon in cash and $500,000 in real estate, free and clear THAT GOT TURNED DOWN FLAT. The reason for the turn down is that this person had only 2 TL's and both were small. BUT this person had a thitrty year history and a financial statement that would knock your socks off.
I quit
Quote:
On 2003-12-19 21:38, bigcape wrote:
What law changes are you referring to?
[ Edited by bigcape on Date 12/19/2003 ]
Where to start......?
Well a couple of years ago the State of Texas in all of it's wisdom passed "House Bill 1869" which did a plethera of things (some of them good) but in a nutshell it made it impossible for you to purchase a MH separate from land if the land was in your name. Even if you own the land outright it had to be part of the transaction.
Traditionally, MHs were always a fast EZ cheaper route than site built. Suddenly, we found ourselves down at the Title company (usually on the back burner) trying to get our deals done and it was taking around 6 - 8 weeks. in times past you could do a deal in 3 days or less.
This past June, our fine Governor changed it up again. Now, you would not believe the obstacle course you have to survive to get a deal done.
I could go on for hours but I won't. Suffice it to say that things are pretty screwed up here.[ Edited by DannyB on Date 12/20/2003 ]
If there are a large amount of MH (repos for sale), then by the laws of supply and demand they can be had cheap. Somewhere out there you should be able to buy a $5,000.00 MH for $1500.00. I can then sell that MH for $5,000.00 at $1,000.00 down $250.00 per month. I now have a $500.00 investment, bringing me $250.00 per month. Their credit is bad, they won't pay! Great! When I take it back and sell it again with only $500 down, I will now have nothing invested and $$$ coming in. Get Lonnie Scruggs book. You are sitting on a gold mine. In any economy there are the eaters and the others who talk.
Be an eater.
Good Luck,
Shawn(OH)
I dunno;
I was contemplating developing my own trailer park so I could do live, on-site braodcasting after Jerry Springer goes off the air.
Yuck, yuck yuck,
C-
DannyB,
I hear your frustrations....
Yet I couldnt disagree with you more.
I recently moved from texas after living in the state for some 30 years.
Your depiction of the Mobile Home market is nothing less than a self described gold mine. NOT financial suicide.
Step outside the box.
You have totally missed the very meaning of "creative" in investing.
If you would like my 2 cents, on how you need to get on track and turn your thoughts of financial suicide into a golden rainbow leading to a pot of gold, email me, I will tell you exactly how to do it... The question is are you committed to doing what it takes? or are you just giving up and making excuses? The ball is in your court...a free million dollar education and the how to...all you have to do is step up to the plate...
DaveREI
I'd like that info also. If you don't mind PM it or email it to me. I'm never to smart to not take advise fropm others.
I was a general manager of a mobile home dealership here in Texas, so I fully understand the frustration you are feeling.
Now I am a realtor working with investors, many are ex-mobile home people also and working the MH repos. I own a couple myself.
I would love any additional imput that anyone has to offer. I will buy that recommended book.
Thanks
[addsig]