All Forum Posts by: David Kauzlaric

I've been doing research on this and you can still do Lonnie-deals, LEGALLY. However, there is a set of rules/procedures/guidelines that you need to follow to be compliant with the new laws (SAFE Act & Dodd-Frank).

I highly suggest you look at @John Fedro program (Mobile Home Deal Maker Formula), he actively participates in this field and invests in mobile homes actively and currently. As such, his program goes into specifics on how to do seller-financing with the new laws and do it in a way that is compliant and LEGAL!

I have recently signed up for his program because I am in a similar boat and I highly recommend his program. His program will give you information and guidance on all of these areas.

I have tagged him to this post so John can chime in if he gets the time!

Thanks in advance for taking the time to respond :)

I thought about renting, but from what I have been reading it seems the best route is to do seller-financing because the tenants are long-term and naturally are vested because they're buying the property and will take better care of it.

Lets assume I get it for 2,000 and it's worth 6500 and I put 1500 into it. I have 3500 invested. I would sell it for 6500-7000. Charge a $500 downpayment and then charge $200 / mo for 36 months. I would end up making $7700 total and recouping initial investment in the first 14 months. Is this good, bad, too much, too cheap, etc? Is 14 months too long? I am just really trying to narrow this down so I know how to look for properties.

I am trying to figure out mostly how to evaluate what its worth if I paid cash, what I can get out of it, and what is the best route... rent or seller financing?

The mobile home market is average in my area. There are always people looking for cheap housing alternatives.

Okay so I am seriously interested in getting my feet wet in real estate investing. It seems like MHI is the way to go because of the low cost of entry and if things go bad, you're not out more than a few thousand and if done properly, a great way to generate a couple hundred bucks a month and get the process rolling.

I've been reading and studying everything I can for free. I am interested in buying, rehabing (if it needs it), then selling it via seller-financing.

The main questions I have are as follows:

Here is the listing: http://appleton.craigslist.org/reo/4305444560.html

1) SAFE Act & Frank-Dodd laws. I have done research but it's not clear. I CAN buy and re-sell this house via seller-financing but I need to make sure and use a MLO, perform proper credit checks and make sure they can properly afford the property, and I am not allowed to use a balloon system. Is this correct?

2) This mobile home is listed at $4,000. I am sure they'll go lower. How do I tell what to pay for this and what should I offer them? I was thinking ideally I would pay $2000 for it, not a penny more.

3) Lot rent is $285, seems reasonable. It's not a ******** area of town so it seemed like a good start.

4) Is this home too old? According to the listing they have done repairs and it's not a run-down ********.

5) Lets say they take $2,000 and you guys agree it seems like a good deal at $2,000..... and lets pretend I have to put $1,500 into it so I have $3,500 invested. How much realistically could I sell this for and how much would I charge for down payment and how long of a structure/interest rates/payments and is it legal to do seller financing or ?

Sorry for all the questions... just really need clarification. I am having trouble figuring out what is a good deal and what is not... how much to pay, how much its worth, etc.... and also if I can do seller financing on this.

Thanks in advance, I really appreciate everyones time.