All Forum Posts by: Dustin M.

My mom and I do some of the work like cleaning, painting, etc. However, we mainly hired handy men to most of the work. I have a list of ten or so handy people at the moment who all work wonderfully. We do 20-30% of the work while the handy men do the rest.

If I do end up getting the mobile homes I was thinking that I could try to sell some "as is" while handy men are working on repairing the other mobile homes. So far they have been trustworthy so I think they could work on the homes while I am away on work. I would then stop by during lunch and after to work to review their work.

Hi,

I am still fairly new to mobile home investing (only have two mobile home notes at the moment). I recently flipped (my 3rd so far) a HUD foreclosure so I'm ready to invest the money I made out of the deal. I am going to use some of the money to invest in another SFR and the rest will go towards mobile homes.

I contacted the park owner that I worked with before and it sounds like he has 7 vacant homes in his park that he wants sold immediately. I have a list of thirty people looking to purchase mobile homes. The park owner has told me that he would give me two months free lot rent on any homes I purchase in his park. Do you think I should offer to buy all of the vacant mobile homes if I can get a good enough deal on them? I'm pretty sure I could negotiate a deal where I would get a few extra months of lot rent in case I can't sell them all quickly enough.

I work full time and am doing real estate investing part time. I have a list of handy men that could work on the homes while I'm at work. Do you think I should go for it and take the plunge or slow down and work on 1 or 2 mobile homes at a time?

FYI Lot rent is $240 a month purchase prices of the homes will be around $1000 to $3000 a piece and they could be resold for $5,000 to $12,000 a piece.

I'll have to use some of these suggestions. I was already calling people ahead of time to limit the number of no shows.

However, in the future I'll make sure to have applications / contracts available that they can sign on the spot. I'll also have to use the suggestion of telling people that I'm the manager / hired to sell the property. This way people would be more likely to tell you the truth when they really aren't interested in the property.

Just wondering if this happens to everyone else.

Had a guy walk through one of the houses we recently fixed up and are trying to flip. Says he loves it and will take the house. He said he needed to get $1000 out of his IRA to pay for the ernest money. This was on Tuesday. I've tried to call him every day this week and he never answers his phone and hasn't tried to call me back.

Every house we have tried to flip it seems like we need at least six people who definitely want to buy the place before we actually get a single person to give us any money for the home. Is there something that we are doing wrong or is it just the way people are and this happens throughout the rest of the country.

My mom has the same problem trying to get some of her houses rented out. She gets around fifty phone calls from people wanting to rent it and around 15 will say they will be there on Saturday to look at it. When Saturday comes she is lucky to get three people to take a look at it.

Anyone have any suggestions on getting people to keep their promises?

If you really wanted to be precise you would need to calculate the tax benefits of mortgage interest deductions and also inflation when comparing a all cash offer vs financing offer?

I bet the answer would be solving some sort of multi-variable differential equation with the interest rate of the financing, your cap rate, tax bracket that you are in, inflation rate, ... (probably missing 5 other things lol).

In other words it is probably way to hard to solve :)

To be perfectly honest I think the owners just want a quick cashout on the property. I don't think they will want to do owner financing.

Well that stinks lol. Ok guess I'll have to lower my offer price and raise the interest rate to match the minimum allowed by IRS.

Still if anyone has a formula they use to do the calculation between all cash and owner financed deals can you share it, it would be very helpful to me (and I'm sure others).

Thanks

Hi Guys,

Had a quick question that I hope someone can answer. I found a duplex worth around $75,000 (ARV) that might make a good rental property. Rents are $400 and $600. The place needs around $5000 in repairs. The owners are trying to sell the place for $70,000

I was thinking of making a all cash offer of $35,000 and see where it goes from there.

However, I was thinking I might have a better chance of getting the offer accepted if I make a 0% interest owner financed offer at (or near) their full asking price. Does anyone have a formula that they use to compare their owner financed offers with their all cash offers? I'm not exactly sure how long the 0% interest loan should be so it is somewhat equivalent to the all cash offer.

I tried using the N, I, PMT, FV calculations that Lonnie Scruggs uses in his mobile home books for sale (they are great by the way buy them). However, I'm not sure if this is the right way to go about doing this.

If anyone has a formula they want to share that helps in this conversion between all cash / owner financing offers I would appreciate it.

Thanks,

I just got into doing mobile home investing, bought two for $4,500. Sold them for $4,500 a piece ($500 down payment, around $150 a month in payments). If they make all of their payments I should collect over $9,000 in two and a half years.

I'm sure this is something that you could replicate with $2000 or less in your area. I also recommend the books by Lonnie Scruggs and reading the posts in the mobile home investing section of bigger pockets.

Good Luck,

Dustin Michaels