Well I happened on to a MHP owner who owns 3 or 4 parks. He has 4-5 MHs he would like to move out of 2 of his parks.
One is going to be developed for a SFH subdivision and the other he is wanting to move out older homes to make room for newer ones.
He is throwing numbers like $3,500 for these homes possibly some higjer lower as I believe some are 3/2 and 2/2 or some need more work than others.
Now Lonnie says try to keep from moving them. Understood. Cash flow is king though, so anyone have any creative ideas on how to say take on 4 homes, move them, repair them and sell them carrying the note?
The park I have selected to move the MHs to is in a GREAT neighborhood/city with an elementary school across the street and Luxury 2 story houses surrounding it.
I figure I can negotiate a discount for moving 4 MHs at once from the movers.
I am hoping that since the park has empty spaces they will let me move the homes in and maybe give me free rent for the first month to allow time to fix em up and get someone in??? Any other ideas for discounts or delays?
I want to see if maybe the seller will want to help a new REI lik eme get started and maybe let me pay to move the MHs and give him maybe 30% down if he will take a 2nd lien on the MHs for the difference payable on a promissory note or something? Ideas?
I plan to sell these MHs on 36 or 48 month notes at 9%-12% depending on how much they put down.
Guesstimates (per MH)
$2,000 Moving costs/inspections/elec hook up
$400 Lot rent (1 month)
$5,900 TOTAL COST
$10,000 Sale price with $233-$300/mo payments
What other important costs am I missing? Any worse case scenarios? Is this just not even worth the hassle?
What about repairs. When you move a MH, they always need some fix up and the older they are, the more repairs they tend to have. Also, if they were in excellent shape, the current owner would sell them at premium price.
Yeah I was looking at that and I did kinda leave out the whole repair work bit… Gee do I really gotta??? ;D Y eah I will be taking a look at what he has this weekend and estimate what repairs will need to be made to them to get them sellable at the premium dollar amount with financing.
Ofcourse these are not in excellent shape, I know it and the seller knows it. It was said to me that they were ‘fixer-uppers’ and he wanted about $3500, but since he has several of them I am wonder how flexible he will be on the price if I was to take all of them or atleast 3 or 4 at once.
The need to get them out of the park may be of more consequence to him than getting cash in his pocket.
Hi, ARamirez, Im interested in doing lonnie deals too. can you post us the result of this deal, im curious as to how fast you get a buyer and if you got what you want to sell it too. are you doing credit check and all those stuff? please keep us posted. thanks
Im happy for you and goodluck!
Well it seems he has more than I can handle. I am wondering how I might be able to help some other Lonnie Deal hunters and make a tiny profit on it as well as get some experience.
He has 35 mobile homes availble in two parks within 25 miles of each other. Ranging from mid 80’s to early 90’s. Price range is between $3500 - ???. He has several that are in a park hooked up and they can sit there for 2-3 months while I find a park for them. So can the few that are sitting in a storage area.
They have the equipment to move the homes so he is also willing to handle to moving side of things for $1,000 and he will give me a discount off of that if I buy more than one.
So now some other costs that I need to think about are ‘hook up’ expenses. I remember when I bought a MH long ago there was some costs for hooking up power and water and an inspection to verify that. Those costs were rolled in to my loan tho so I don’t know how much it cost.
And last but not least gotta find a decent Mobile Home Park that will take MHs that are older than 1996.