All Forum Posts by: Christopher B.

@david tower

great stuff David, keep it coming. Like mentioned, one of the frustrating things here on BP is never finding out the ending of the story. Just from reading through your posts its clear that over the last 3 months or so your mindset has changed and you are gaining steam. Keep it up!

Good work guys! This is great for those getting started, wish it was around when I first started.

Sam Parkins Incredible information! Knocking them over the fence

"guard your cash like a mother bear." Hilarious and very true as I have money to invest but no longer am working a job that can generate working capital (just covering my bills as I focus on REI). The investment decisions I make now are very important as they HAVE to help me generate more working capital. I am leaning towards pulling back buying for a moment as I spend more time gaining market knowledge because of this fact.

Great negotiating tips as well, I've worked in sales a bit but will add this to my toolbox.

Question: I have found a buyers that is moving into my area and looking for a mobile home. I considered sending them pictures of the MH and offering it to them As-Is for $6k or $9k if I make all the needed repairs. Have you even done something like this and do you consider this a good tactic?

thanks for everything. I am going to save the many nuggets you've provided for later reference.

Oops.

@john Fedro I agree

@Sam Parkins Thanks for the response. I've been running some #'s and still like what I see in the mobile home business even though I wont be able to cash-out immediately. I went and looked at another mobile home today but have some hesitations (first-time buyer cold feet I guess). If any experienced MH investors care to throw their .2 cents I'd appreciate it.

Asking $5k

Offered $2500, stated they want $4k as they're moving to Cali.
Wont pay more than $3k

85 Clayton 14x60 (70?) title didn't say length and I didn't have a measure. Will have to get good at measuring just with my eyeball

No heat/air unit, power not hooked-up. Will need some paint (inside and out), maybe kitchen vinyl, fridge ($50 from a local apt complex), and few other small things. What I am worried about is it seems they attempted to "pretty" it and fix some issues but did a poor job. Not a huge deal because all small issues and paint isn't expensive. However, the ceiling in the master is bowed a bit and shows signs of water damage. I wonder if they tried to hide anything else and since I have little experience don't know what to look for.

What do heat/air units run and where do I get one for a mobile? Do you put used units in that can be located by contacting a local heat/air company? What does it cost to re-seal a roof as it looks a bit rough (dry) and the master ceiling leads me to believe there may be an issue?

Also, the doors and door handles didn't match. The counters were odd and 1 was out of level and the pantry doors were too short. I assumed this wasn't a huge issue in a $7-$10k home, am I right?

Pictures (from phone with no light in the house)
http://s1359.beta.photobucket.com/user/rowan52/media/Yellow%20Submarine%20MH/photo_zpsedc14561.jpg.html?sort=3&o=8

John Fedro I

Jon Holdman just proved why he's an expert and I am not.

I'm not exactly an expert in this arena, but to kick-off the responses do you have access to any private money?

If you have a local expert I'm sure they or someone they know has some cash that could possibly be put in the deal . If you can actually get the current tenants to lease option the house for $140k with a balloon in 5yrs this could be a decent deal, imo, to capture $30k -$40k in profit plus some monthly cash flow.

I'm curious to what the experts on here will say but I wonder if you can make it a condition, even if just verbal until everything is signed, that you will move on the deal when the current occupants sign your lease option for the $140-150k.

At that point you have your tenant-buyer and a non-refundable down payment. If they don't buy the house then they've paid the mortgage down for you to simply put on the market at retail and cash-out or go out and find another tenant-buyer.

If you can turn the house in 6-months, which I'd surprised unless their credit is simply border line at the moment, even better. Sounds like a good deal. However, check the comps because they wont be able to get any loans unless an appraisal supports it, obviously.

Sam Parkins Excellent response, again!

I like your model. I was worried that Lonnie deals were dead but this model seems to have riddled that. After this discussion I have taken more notice in my market and this is exactly how other investors in my area are selling on terms (lease to own).

I have another question though. I have some capital at my disposal right now. My original plan was flips and multi-unit's but I don't have enough capital for that currently am currently reviewing other investing strategies which is why I am here in the mobile homes investing forum.

To the point, have you had any success in flipping/wholesaling mobile homes for cash? I LOVE collecting monthly rent checks (own a duplex currently) and like your model, but I am also in need of capital. Basically I have to use my current capital to build more capital otherwise in the near future, otherwise I will create some monthly cash flow but end-up putting myself out of the game for 2,3, 5 years. Given the current market condition and the wealth of opportunities I really don't want to do that.

Sam Parkins great response, excellent information for me here.

The lease/option makes sense. How do you structure the terms though? I assume there has to be a balloon payment of some kind, otherwise you would simply be calling owner financing lease/options?

So a $7k trailer with $3k down, 7% ($179.09/month[limits to rates that can be provided?]) amortized over 2yrs with a balloon/option to buy after 12 months for the remaining balance of $1851?

Is that in the ballpark?

Sam Parkins thanks for the reply, lot of good info!

I passed on the 2/1, it was 48 miles away and just too much work for me in addition to its age.

Building a buyers database is something I'll have to begin doing.

I have a question for you that I asked on the main forum but nobody has answered. Due to the Safe Acts, etc is mobile investing as good as it was and what precautions should I take?

It seems owner-financing is out the window legally, but I am seeing lots of ads on craigslist, in parks, etc advertising terms and owner financing. I just don't want to back myself into a corner