All Forum Posts by: Patrick Sears

Hello, I am looking at a 1985 single-wide MH 14'x72' on a perimeter brick wall foundation in a deeded lot MH subdivision (real property). Needs a lot of work and might make more sense just to get a late-model repo towed in. I was wondering what it might cost to have the foundation increased to accept a 16' wide x 72' instead, since there are so many of those out there now. Also, what land mines should I look out for when setting a new home on an existing foundation? I know there is the possibility of size variations between manufacturers; are there ways to adjust for minor size differences when setting on a perimeter foundation? Thanks!

Thanks for the replies!

Ryan, yes 21st Mortgage is nationwide.  But they do the homes; I would think park financing would be easy nowadays (assuming it is stabilized) .  If you have empty spaces, they can help with that too.

Chase, yes I was talking about land/home deals. But more specifically, finding a lender that does cash-out refi's up to 65-70% LTV of ARV. I talked to someone at 21st who confirmed they did refis but only to 50% of the ORGINAL PURCHASE PRICE. So in other words, if I bought a fixer on land for $20k, put another $20k in it, and then it appraised for $70k, they would only give me 50% of the original $20k ! Since this is so ridiculous, I am planning on calling back in a couple of weeks to try and ask someone else, just in case this person didn't understand...

As a real estate agent in a rural part of VA, do you see a difference in single wide vs dbl wide in resale and ability to finance? Singlewides are cheaper to set-up, fix-up and purchase generally, and they rent for almost as much. Thoughts?

Also, it seems like mobiles in land (or in parks for that matter) aren't nearly as popular in Virginia as they are in the Carolinas and other Southern states.  Don't see anywhere near the number of for sales here as say, in South Carolina.  Do you agree?

Hello,

so If I decided to either rehab or develop a mobile home on land and hold for a rental, and refinance it to pull cash out, what lenders are doing this?  I believe 21st Mortage is doing it-anyone else?  I looked at Triad's website but they didn't seem to really talk about it.  

Thanks!

@Jim Johnson Thanks! I don't mind adding value to the deal by acting as the buyers' "loan officer" throughout the process. That could even be part of my marketing. If I did enough of them with 21st or Triad, and consistently brought them lower-income but still decent, on-time paying buyers I could build-up some goodwill with the lenders that might come in handy down the road for bigger projects.

@Jim Johnson Have you used 21st Mortgage in the past for your deals? How was the process? Smooth and quick? Or did they play the usual deal-killing lender games?

@Andy Mirza Yeah the more I think about it the more I think it could turn out to be a bigger headache than it is worth. It might be worth it for a very high-priced area and home (assuming it is even legal) but for your average small deal, probably not.

@Chris Seveney Yeah, I thought that might be an issue depending upon the (nanny) state.

Thanks Frank for the reply!

Yeah, I heard they would do it for park owners, but they were also doing it for "developers" for land/home deals.  Commodore only had a minimum of 2 units to buy to qualify for their developer pricing.  I had a Virginia MH dealers license at the time, too.

Thanks for the link, Bob!

LOL.  I actually just re-listened to your podcast on BP this morning on my way to work!  I was raised in Everett and used to take the Edmonds-Kingston ferry often.  My sister lives in Chimacum.

Is your friend still putting mobile homes on land and renting them out?

Hello, Curious if anyone has sold a home with owner-financing and designed the deal to keep a portion of the ownership of the house along with the new home owners? I'm talking about staying on the title with them, and keeping a partial equity position in order to keep the home more affordable to them via a lower purchase price or smaller down payment. I can definetly see this being of value of high price areas like Seattle or SF. I guess this would be a "residential partnership" I'm talking about consumer end-users, not investors. Overtly high-priced RE isn't a problem where I am, but I thought this might be a good way to share in the appreciation of the house while still selling (vs. renting) as a business model. No landlord headaches (main argument against buy-and-hold) and no giving up of future appreciation potential and a portion of tax benefits (main argument against selling on terms). I vacillate back and forth between buy & hold rentals vs flipping w/owner-finance; why not just do both...? I also figure that if I am on the title with the buyers, I might have a stronger hand in court if they decide to quit paying. Maybe? Yes? No? Any Dodd-Frank or other nanny-state nonsense legal land-mines to look out for here? Thanks!