JAN JUMPS IN-DOUBLEWIDE DEAL-FSBO

Why do you have until 10/21? I would wait it out until the owner gets a little 'more' motivated and you get pick it up for a bigger discount. Read Lonnie Scruggs "Deals on Wheels" book, if you already haven't. Mobile's are GREAT cash boxes!!

E

They are going away for 3 weeks and the 3 renters that I have are getting impatient. How do you feel about an HML deal or should I approach them to hold financing??

Most mobile home sellers want cash, at least the ones I've approached that's why I wait them out, they eventually drop the price. Try to find other's for your 'impatient' renters to keep them happy. But I would wait this one out, but that's me and I'm CHEAP!!! LOL! I just can't see paying that much for a mobile when houses are almost as cheap...

More for me to think about. That's why I go to my inner circle for the low down...Jan

I am always here to give you the lowdown my friend. I LOVE mobile homes, I'm glad you're also focusing on them. They can make you a nice little income each month, so you're on the right track!

I will keep you in the loop for sure. Man I love this business!!!...Jan

I love this business too!!! Just keep in mind, the less you have in the deal the less risk it is to you. Just in case the buyer can't make payments YOU'RE not stuck with them before repossessing/foreclosing on them. Then you can just do it all over again with a new buyer!
That's my rule of thumb.

(Hi, Lena )
Sorry I'm a little late checking in. lol

Jan, first I want to say COOL! that you are getting serious. I know I read that a couple of deals you've had to let go. But I think this is the first one you wrote about in here, and that shows me you're getting more serious (Am I right or am I right? LOL)
Anyway, I'd go with Lena on this. Sounds like she's got some experience in this area, and that supercedes any advice I could give you.

I'm a tad bit confused on the ARV amount ($47,000?) and the 70% you'd be asking fom a HML ($32,900?). Would you still need rehab money? Anyway, don't let me deter you, but give yourself time to think about this. I think, like Lena said, it could get better if you wait. Don't feel pressured to make an immediate offer. If it was the deal of a lifetime I might not say that, but I think you've got some room.

Again, Jan, congrats on stepping out and I'll be praying for wisdom for you.
You're a great guy and I wish you the BEST!

your friend,

Rina

P.S. I forgot to say, run this by the coaches, too, Jan. They'll give you some great options!

I'm going to call the coaching line tonight. I have bee pondering this deal so much, I had a dream about it last night. My whole problem would be the HML money. You see there is no rehab to be done to this doublewide, so now I think I am stuck unless they will hold the mortgage. I don't want to put anything down at all, and with the banks being so tight to lend money. Your thoughts are always welcome, that's why I go to you cbr and Elena..Jan

I have been looking on craigslist regularly and I have been seeing alot of mobile homes listed. Some are only 7k in great areas.

Since I am only doing assignments at this time can I assign a mobile home? Let's say I find one for 7k and want to assign it for 9k or more can I do it? The ones that I have found have said "must be pre approved by park for sale" what does that mean?

They seem to be great rental opportunities.
Again... I am still learning!

If you keep watching that ad you will notice that most likely it won't sell....unless it is a really nice newer mobile home with some land.
Most likely they will end up having to owner finance it. Now if it is on some land that doesn't belong to them you will have to have the MH moved which is not good. I have seen several mobile homes just fall apart while they are being moved down the street. I personally wouldn't buy a MH that has to be moved. They are not built very well and not much to them behind the walls. Mobile homes decline in value tremendously. Just make them a owner finance offer and put yourself a renter in there. There is good positive cash flow in MH that can stay stationary.

So basically find a mobile home owner finance, rent it and collect the cash flow? It sounds to easy like everyone should be doing it including the owner of the mobile home. How much rent could someone get for a mobile home?

I need to know these things because I literally live in mobile home heaven. There are mobile home parks everywhere here. If I can cash in some how let me at em!!

Carol, mobile homes are good cash flows with the right plan and the right strategy, but underdstand that mobile home value do not appreciate. I have a friend who's making a good living investing in trailer parks, but he also realize that soon or later he's going to have to buy new mobile homes and sell the old ones. You do what's best for you and what works in your area. Knowing what people are paying for rent in your area and understanding the market (mobile homes) in your neighborhood. Good luck and happy investing!

Lloyd

This particular doublewide is 14 years old and in good shape as DW's go. it does need a new roof though, because the pitch on their roofs is not a good match for the weather we have up here in upstate NY. I did a walk thru Saturday and the owner is a REI also. I was throwing some REI talk at him Saturday and I believe he know's where I am going with this deal. There are a bunch of lenders out there for MH and DW's purchases, both for new and used and they only ask for 5% down which is easy to get around. The problem is they don't do investor purchases which could get sticky. I have 3 renters right now waiting to get in to this DW and each would pay $270.00 per month each. Since there is only a lot rent of 270.00 per month and no taxes, cash flow could be nice. But I know this is a long term buy and hold, and I am ok with that. It is a start. hope this answers some questions for you...Jan

I have a friend with two mobile homes that she bought without the land, because that's how they were sold. However, near to her own home she has extra lot space where she houses these two homes. Her intention is to do some renovations, connect water and sewerage supply and rent them out. She realizes that unlike the other properties she has, the mobile homes will not last a long time. She says that it will bring in enough income to offset the purchase prices and put a considerable amount of money in her pocket. Therefore, for cash flow, it is a good investment. Good Luck and God Bless.

Sandra

The best way to make money on mobile homes is to finance your buyers. Then you can re-sell it for more money, don't have to fix a thing and if they default you do it all over again. That's the ONLY way to do it. Buy at a discount and resell it to folks that can't afford a big house payment, they're happy, you're happy and you can do it in parks or on land. That's why I often say mobile homes are CA$H boxes!!