All Forum Posts by: Terry Drake

The knowledge you would obtain by reading the book now is far more valuable then the $35 write off. Especially considering the time and energy you are putting forth in searching parks and looking for deals. JMHO

6 months us just my rule of thumb or preference (6 months is pretty attainable if you stick within the budget $2-3k) Have you read Lonnie's books? He does a good job of explaining the difference between ROI on a 2-3k home vs spending 5-6k on a home. If you can get in and get out of deals under 3k you will find that not only do you hit the black ink quicker but it also leaves you with more capital to complete multiple deals.

BTW You're very welcome. I'm glad you have found some of my post to be helpful!

It's a decent park, not a 4 store but it's not run down either. All the homes in here are mostly early 70's models and 2/1's.

I don't go for a % so much as I figure out how soon I want to make my money back. I like to stick around 6 months if I can. So for this one I figured I could get about 2k down and payments of $250/month would get me back my money in about 6 months.

When you start spending 4k or more on a deal it takes longer to get your money back which means if they quit paying, or trash the place you are still upside down when you have to take it back putting you even further in the hole.

Thank you. I didn't put anything into it, bought it as is.

Originally I paid $500 for it when it looked like this:

Sold it a few weeks later for $3500. He did everything you see then sold it back to me for 3k because he had bought a single family and had to get out.

It sounds like you would be buying the home from another investor doing what you're doing and if that's the case you can be pretty sure that he's not going to leave much/any margin for you. You want to get your money back out of the deal and start making a profit ASAP. $8k is a big number to swallow and could take a longer to get your money back then I would like to wait.

Although if this MH is real property meaning that you own the land underneath too I would say that's probably a good deal.

A few things I would like to point out...

- The only thing less desirable then an old 2/1 is a 1/1.

- A < 60' trailer is considered to be 'short' (70' is ideal and I won't buy anything under 12' wide)

- YOU could have remodeled this home yourself for less than 2k labor and materials (paint, flooring, new carpet, laminate flooring, ect).

- Nobody likes a small bedroom. (small bedroom isn't a deal breaker but it's certainly not a selling point).

Keep in mind I'm not familiar with your market but it sounds like 8k is where you are going to want to sell at in which case my max offer would be 3k.

Here is a picture of a home I just bought back for 3k. It's a 1972 12'x60 2/1.

Currently listed at $8900 financed or $7400 cash.

Regardless of whether you plan to buy the home or not you should definitely go take a look at it. It will put you one MH closer to your comfort zone. I used to put my hands on any home just to get the feel for talking with the people, asking questions, and inspecting the home.

I have the titles transferred in to the new owner's name immediately. This way I'm no longer liable for the home (or lot rent). If someone trips and gets hurt, it will come back on you if you are the owner and you will be sued. When I have the title transferred in their name, I also put a lien on the home, then I keep the title until the home is paid.

As far as getting the home back in case of a repossession, from what I understand it's tougher to evict someone then it is to get the title back if you have a lien on it.

I would never let the buyer hold on to the title because all they would have to do is initial the 'lien release' portion of the title with your initials and they could sell the home.

I'll throw something else out there that has worked pretty well for me. I found a lady here locally that does all the title work for me. When I sell a MH I have the buyer fill out a POA and I make copies of their DL's. Then I take the title, POA, and copies of their DL to see Esther (title lady). She goes to the DMV, transfers title, and places the lien on the home all for $35. It is so great to not have to go to the DMV and take a number, then wait for an hour only then to deal with the cranky 20 somethings who just started working there. About a week later I receive the new title, and registration in the mailbox.

She also will take care of the entire eviction process for $125 (plus filing fees). I think I love her!

Hey Terry, welcome to the business! I would start with reading Lonnie's books (sounds as though you have). Then I would read through the different threads here and anything else you can get your hands on. Nothing gives you confidence like knowledge. There is a lot of good Q & A here, and of course you can ask as many questions as you want. There are more then a few active investors who would be happy to help you.

James, to be honest it has been business as usual. I'm sure I'll get scolded by some for not heading the SAFE act but who's to know that I am holding a note anyways? To involve a mortgage broker or lender to write up the deal for a 4k note with fees from a few hundred up to $500 is crazy IMO.

I think as long as you are doing business ethically and adhering to your state's usury limit (18% here in FL) you should be ok but I'm certainly not an attorney. So you might want to consult one before taking my advice or following my lead.

With that being said, I would be interested to hear what some of the other 'Lonnie' dealers are doing as well.

Citizens. They didn't ask so I didn't bring it up.

Edit: I should mention that I was talking about mobile homes, not single family.

Definitely aluminum. One of my rentals has it, and a lot of my 'Lonnie' deals have had it.