Selling mfg homes in parks
I have the opportunity to purchase a couple manufactured homes in parks, the parks will not allow me to rent them out but they will allow me to resell them instantly. 2 questions #1 I am looking for financing on both of these homes is 100% financing available at a higher rate and #2 I understand when a buyer buys it they will have a hard time financing it also since it was not seasoned with me. Any input would be greatly appreciated.
Thank you,
Julie
Hi John and everyone reading this post,
Even though I did not get the home mentioned above I did not let that get me down, I just purchased my first Mobile Home in a park for 6,000 and I am going to resell it for 14,000 -16,000 (that is the going rate for around here for this particular size) my question is I want to sell quickly, so I am going to offer financing as old Lonnie says to for a quick turnaround, then I would like to sell the note so I can get my money back both my investment and profit so I can do some more purchases and eventually I will want to hold on to the notes I do know that is where the money truley is. My question to anyone of you seasoned veterans is this the best and only way to go about getting some of my money out of the home? I thought about telling the new buyers (when I have them) that if they can find the lending in 30-45 days I will knock off a thousand or two. Any ideas or thoughts will be greatly appreciated,
Julie
SWGCo,
Julie, glad to meet you.
Mobile home depreciate very rapidly, so if you are not familiar with estimating value you can get in trouble very quickly.
The NADA book is used for looking up wholesale and retail values of mobile homes, however the seasoned mobile investor pays little attention to book value except for the retail side. You really must buy right when it comes to mobiles.
Along with my creative investing investing career I have been in the automoble business for many years and have purchased millions of dollars worth of autos at auction. It took me a long time and some bad deals to learn what to look for when bidding on autos. This will apply to mobile homes also.
You do not have to be concerned with the seasoning issue it does not apply to mobiles or automobiles.
Great investing but learn the trade first and not the hard way.
Welcome on board this board, a pleasure meeting you.
John $Cash$ Locke
Thank you John for your input on this, I did look up the home on NADA the repo company is asking 24,000 NADA says the retail value is 20,000 - 21,000 but low retail is 14,000 so I thought I would offer them 14,000 it is good shape nothing major needs to be done to the home and I figure for my first flip or rehab even if I made 3,000-4,000 that is 3,000 or 4,000 dollars more then I have today. By the way I do have 2 rental homes, 1 of them is a mfg home on 1/2 acre I have just not dealt with parks before.
Julie,
Send them a cashiers check for $6,000 with the proper paperwork stating cash the check, send me a free and clear title.
See what happens!
John $Cash$ Locke
I am a very gutsy person so I will do that all they can say is no, right. Thank you very much for giving me that little extra incouragement I needed to hear
Julie
Julie,
Your welcome, but you are right they can say no or counter offer. Nothing ventured nothing gained.
John $Cash$ Locke
Hi John,
just thought I would let you the home sold for 22,000 the company had 3 of them and all 3 sold for a couple thousand less then what they were asking for. What a great experience it was though to go through the process, it actually got us starting to look at lots and thinking we could move this homes on to lots and sell them for a lot more so I came out of this without a house but with great inspiration to move forward.
Thanks again,
Julie[ Edited by SWGCo on Date 04/21/2003 ]
Julie,
It sounds like you're doing just fine! You could offer a price of $16K, owner financing available with $2K down. The note would be for $14K at 12% for 5 years. Or, $14K if they have their own financing.
As for the owner-carry note for $14K, most investors want a yield in the 15% range (or better). A standard interest rate on a MH note is 12%. You could expect to discount the note down to roughly $13K to allow for this yield. But, hey! You stand to more than double your money on this deal. Great job!
Happy hunting. Let us know how it turns out.
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