Buying Foreclosures, REOs. Short Sales, FSBO, MLS and More

BUY RIGHT! IT’S THAT SIMPLE. YOU MAKE YOUR MONEY IN REAL ESTATE WHEN YOU PURCHASE THE PROPERTY.

I know this isn’t brain surgery here, but it’s so simple that many people miss it. They think that the property will go up exponentially in the future, and therefore paying today’s market value won’t hurt them. But that’s a mentality that will set you up with a bunch of rental properties that you don’t make any money on, and have to sacrifice time and resources to maintain. It just isn’t worth it.

Even if you find a mobile home and are going to purchase it you may need to get qualified by the Park.

The manager may require you to show a credit report as well proof of income and an employment history. Even though you may be purchasing the home the park may need rental history or home ownership history as well as personal references and even a possible background check.

This type of information may be required if you are purchasing a home as well required again for someone you are selling the home or renting it to a tenant. Keep this in mind when purchase a mobile home.

When you are looking for mobile homes you may be looking for inforamtion on the internet. There is a greate site at www.mhvillage.com. This site has a lot of what I have mentioned in my other posts. You will find information about:

Selling mobile homes
Finding mobile homes
Finding mobile homes Parks
Finding mobile home Brokers
Determining the value of the mobile home
Finding finance (this can be hard to come by)
Finding insurance specific to the mobile home
Other mobile home sites that can give you even more information

Before you can speak to a bank about a certain property you will need an Authorization to Release before the bank can talk to you. I have included an Authorization for convienience.

AUTHORIZATION TO RELEASE
MORTGAGE LOAN INFORMATION

Date________________________
Lender Fax # ________________________________
Lender Address______________________________
______________________________
______________________________
Account or Loan # ___________________________
Lender Telephone # __________________________
Borrower(s) ________________________________

When dealing in real estate, whether it is conventional real estate or notes you may worry if someone will go around you and complete the deal without you (circumvention). To keep this from happening you can use a non-circumvent agreement. I have added one below. I know it will be a little choppy but should give a good idea of what one will look like. If you use this contract I do suggest you consult with a lawyer.

Non-Circumvention, Non-Disclosure And Confidentiality Agreement

Just like a car the older a mobile home the more problems it will have.

I would suggest purchasing mobile homes that are newer that 1980. In 1980 HUD came out with their updated mobile home requirements which means the homes are built better. Most parks and financing companies will not deal with homes that are older than 1980 also.

The older homes had inadequate wiring only 2x2 studs in the wall which were spread wider than today’s mobiles, aluminum wiring and other less than adequate constructions.

Park Managers can be one of the greatest ways of finding mobiles homes. Park managers can also be a fantastic way of finding mobile home notes as well.

Most mobile home park managers that understand business will have tenants sign a first right of refusal so the manager can purchase a tenants mobile home if they leave. In addition, mobile homes managers / parks that sell mobile homes will take seller financed notes because the financing for mobile homes are hard to get and usually require seller financing to complete a transaction.

Realtors can be a good opportunity of finding mobile homes. You will find a good realtor that understands mobile homes. You can use the questions that I have brought up before to qualify the Realtor. You can look for good Realtors to qualify by looking for the Realtor signs in the parks. Also looking up mobile homes in your MLS you will find Realtors that list the mobile homes. These people should understand mobile homes. Call them. Qualify them and enjoy the fruits of the time they can give you.

When you look for mobile homes you should treat them just as a SFR. A great way of finding deals is working with the FSBO's. Motivation is going to be key just like the SFR.

Drive the parks looking for "For Sale" signs then call them when you are in front of the home. Often the owners will show you in if they are they. You can build report and possibly get a good deal there.
Look for signs of motivation such as unkempt lawns or the mobile home itself.

When you purchase mobile homes you may have to move the home to another location so keep in Mind the Cost for Moving the Home:

You will possibly pay for:
- Moving the home
- Disconnect & reconnect utilities
- Setting up and leveling the home
- Attach skirting
- Average cost $3,000 within 50 miles