All Forum Posts by: Jamey Jarrett

Thanks John---No the mobile home --there is one on the land but it is been pretty much gutted with a fire.I took pictures, but I didnt think anyone would care to see them. I would have to remove this one and put another there.

So it looks like you think I should pass--which is fine. So my initial goals are very modest--I would just like to generate an income of $1500 to $2000 a month.

So what do you suggest? What are some of the deals you see people do in my state? Are you suggesting like getting homes in parks and flipping them? Any advice would be greatly appreciated!

Thanks for the welcome Brandon!

Well we had our meeting today! Heres what he wants---- $3000 down---$250 payments a month and he wants to add a rate of 10%----He said he could come down to $14,000 since that is what Oakwood Homes said they would pay for it!

He was at $15,000 firm and I told him that I still had to deal with getting rid of the old one and then deal with the expense of the new one. He then agreed to come to $14,000. When we discussed monthly we started at $300 and I asked if he would go to $250 since he was adding the interest rate. He is heavy into mobile home investing. He just wants to sell this one because its not as close to his own home or any of his other properties. I learned alot just from talking with him. He is 71 and has been at this since the 80s. He owns a park, lots, rentals, etc. He says he likes to own the lot and sell the trailer to the occupant and still keep the lease. It said this tends to make for better tenants. Among many topics, he wanted to emphasize that renting isnt always easy--people leave in the middle of the night and in this case it was believed that the tenant purposely set the place on fire when the owner just spent thousands of dollars on it last summer remodeling it. Also, on the down payment I told him that I could give him $1000 cash and Im thinking maybe two more monthly payments of $1000 and then we go to the $250 payments. Also,I was thinking of asking if it was paid off in a year could we forgo any interest.

He said he once let a man tear a trailer down for the scrap and paid him an additional $300 for doing the rest. I know another man that did that once as well. I took pictures before he got there. I wish I could go ahead and post an ad on Craigslist to see if anyone would bite on that to go ahead and be rid of that problem and possible expense.

I asked about if I could actually move a new home there and he suggested I call Planning and Zoning and ask about that. Then call the Health dpt. Most of you all probably know , but for those of you who dont like me, you have to pay them $50 to come out and inspect that the septic system is still in good shape. I looked the address up again online and it was listed as RA3 zoning. I made the calls and the lady said it was fine to put a new mobile home there--single or double as long as it was 1976 or newer. The second office confirmed that I would have to pay the $50 fee. He said they were out there last summer but she said it is only good for six months.

He tried at least twice to get me to go ahead and go back to his house and make the two calls and then Im sure sign some kind of agreement. I told him I would need a week. He was a very nice guy btw.

One other thing he mentioned---he said you could put a 3br there and get it approved--we didnt go into detail but he mentioned putting up some drywall--maybe over the closet?? And telling the inspector that the room is to be used as an office or something like that. Anyone ever heard of this working? He said that they dont actually go by the amount of bathrooms but the amount of bedrooms to get approved.

So Im long winded on my every comment--but there are the details--should I do it? Anyone interested in buying it? Haha
Its a quick profit kind of deal but as I mentioned before at the least I will own a lot that has septic and land appreciates. I could use it to provide collateral.

One last thing--from our first conversation he said that he wished he had talked to me just a few months ago before the fire. He said the selling price then was like $23,000. So a 2/1 on a .37 acre. I think this gives me an idea of what the land/home package could sell for.

Thanks Carl!! Man I appreciate the "long" response!! You make some very, valid good points. I will mention the thought of subtracting the costs of demo, IMO a very good idea, to the owner tomorrow when we meet. Although Im pretty sure he wont go for it. He made the comment when I asked about the property value that it "was worth more to him" and then went into the septic tank, etc comment. And btw, the driveway is just a gravel one!! Haha So anyway, you and Denise have made me wonder if I can move another home in there--as I said this street has only 3 mobile homes and the surrounding neighborhoods are all app. 10yo or less apartments and stick built homes and town homes! I will definitely ask about that!

He seems like an older man that doesnt bend much. Also, when I looked the value up online I saw that his name had tons of other properties that were smaller in value. Im guessing he owns upwards of 20 or more mobile homes. Knowing this info, I think this affects how he will negotiate. He also told me he settled with the insurance company--so he doesnt have much to lose.

So, I dont know much about septic systems...I also had thought it would be much better to have 3br or larger...so how much would the cost be to replace it? But then again , regardless, the cost might offset my time and potential profit.

I might have to sit on this for a few months as I dont have alot of money to work with. I just thought the ability to own some land, the potential to use it as collateral or gain a line of credit from, and the future renting or selling of the property made sense. Am I wrong in this thought process or should I just be looking to make the quicker profit!! Also, I have read tons on real estate in the past and used to read constantly on mobile home deals on Creonline that talked alot about Lonnie deals. Today I have been looking at posts on this site for hours. I just think it is time to act and move forward with it some how!

I look online on Craigslist everyday like its my life depends on it!! Haha I do currently buy and resell certain items on there. Just today I made $750 in cash profit that I just bought on Friday!! So, I look at real estate here in NC at anything under $20,000 but really hoping for and paying more attention to homes for $10,000 and under. And yes, they are there all the time!!! I have seen motivated sellers and a lot of trailers for sale that have to be moved! Ive even seen a guy who will sell you a mobile and includes the price of setup and delivery in his "decent" prices. He finances I think as well.

So bottom line... with your old house example.. are you suggesting that I just walk away as I will be putting to much money into it just to get it to the point of renting or selling?

Also, Im not familiar with the term Skinny deals. I Googled it also and saw nothing. Im guessing you are talking about the profit margins are low and with unexpected costs--profits could be nothing??

Thanks Bryan!! I will do that! Glad to see someone on here that is not that far away!

Thank you Denise----You have some very good advice. I never thought about the Grandfather clause!! Oh , and I am sure the home will need to be removed soon. I was thinking yesterday that the city would come along any day__haha prob as soon as I was to put it into contract!!-- Also we discussed the removal. I am with you on the Craigslist ad--Ive seen people here offer them for free for people to tear down to get scrap money on metal, etc. It is highly burnt on one end of the trailer--more of the bedroom---whereas the kitchen area is fine--thats a good idea to see if anyone might just take it--but Im not sure they would.

So I know I have that option. I know I could tear it down myself. He mentioned I could rent a dumpster and rent a machine or I could hire someone to bust it up with heavy equipment and put it in the dumpster. He even mentioned a place you can haul it away to for free not too far away!

Thanks for your response!!

Hey guys,

I just joined Bigger pockets. I started following the site on Facebook maybe a week ago! I am located in North Carolina. I am looking to get into real estate and think that mobile homes would be a great place to start. I currently have a job but not a lot of cash!

Real estate wise--I dont know a lot! After some failed attempts to buy my own personal home and later a relationship breakup a deal fell into my lap. I could move into an apt that I would pay a high rent and continue to live nice or I could put some money down on a trailer and a full acre of land. I went for the latter as I wanted my chance to own something and use Dave Ramsey principles and "Live like no other, so one day I could live like no other"! (Or however that goes!) So I put a couple of thousand down and started living here and fixing the place--which was in terrible shape--another post in itself!!
It is not in my name yet but it should be soon! We agreed on a purchase price of app $17,000 that had a tax value of app $44,000! Once this is in my name I know there are a variety of ways I could go!!

OK--now my new opportunity--- I was riding around, which I do from time to time, and had spotted a trailer sitting on some land. More recently I noticed there was obviously a fire there. I pulled in one day and saw that the place was gutted and their was no chance of a rehab. So I drove by another day, its not too far from where I live, and I saw a man out there. I decided to go talk to him and see if there was a chance for me to get a deal. So he wasnt the owner but he gave me the number of the owner and I called him and left a message. We spoke later that night.

The owner wanted $15,000 for .37 of an acre that really is in a good area. This road is near some very nice newer apartments and some newer neighborhoods. There are only a total of 3 trailers on the little road this one is on! So I looked the tax value up online and it is $10,238--land only and more with a trailer. I told him I was interested but I dint have $15,000 and would he be willing to finance it if I put a down payment down. He said maybe and I told him I would call him in a few weeks.

So he called me back yesterday and we decided to meet at the site on Monday and discuss things. I reminded him I didnt have the cash amount and would need to finance and he said he would but we didnt discuss numbers. I guess we will do that Monday. He mentioned someone else was interested--actually Oakwood Mobile Homes. I know he just got his insurance money and he's ready to let it move. Also I think its going to be my responsibility to remove the trailer. BTW, I did ask him thinking that he had more resources that he could put a newer trailer there and he could then let me buy the place. He kinda interrupted me , so I think that was a No Go.

Anyway, Sorry so long, I think I should go for it---just to get me in the game--to have something!! I thought I would offer him something low like $500 to $1000 cash and like $300 payments till paid or put a two year cap on it--where at the end I have to have paid it completely off. When I can, I clear the old home off and put another used one there--It can only be a 2 bedroom he said as the septic tank and system can only support that size. On the point of purchase price--I told him the land was worth only $10,000 but he reminded me that the place has the septic tank , a drive way, and has been graded. I know it could rent easily for $500 a month or I could try to resell it on a lease option expecting like a $1500 down payment.

So what do yall think???