To be able to find a lender that will even look at financing a manufactured home as an investment is hard to find! Conforming and government guidelines only allow for owner occupied and vacation home financing for manufactured homes. Therefore you need to find a lender that will portfolio the loan.
From the information you stated, it sounds like a program that 21st mortgage use to offer, however they typically only charged 2 points. Google them to get the website and ask if they still finance investment properties.
In Florida, we have seen our share of Morphidite...MH-/Stick homes. For the most part, they are not eligabile for mortages, since they are illegal structures.
You can buy & rent. You can buy & sell carrying paper. But you really have to STEAL it in order to justify the problems in finding a cash buyer.
[addsig]
Faulky
Nice post. Thanks a bunch. I purchased a mobile home about a month ago. Not sure if I want to fix and rent or fix and sell. Came with 4 acres. Thinking about splitting land, writing up a shared well agreement, selling mobile and two acres and see what I can do with the other two acres. Anyway, good post.
Now on to my question. A little background first. I purchased two mobile home lots at a tax sale couple of years ago. Just got title (Collectors deed) about a month ago. One lot, almost an acre, had a mobile home on it and guy was buying the home from someone. OK with me, mobiles are personal property so it didn’t come with land. Cheaper for him to pay me the $150 month rent than to move the home. Second lot is empty as of now but has the metal tie down thingy’s where a home had been so believe it may have septic, sure hope so. Will check it out when I get time.
Now the Question. I read the restrictions and by-laws for the mobile park and it always refers to the fact that things must be done according to the “sellers” wishes or approval. So how would this work if I purchased the lots from the county collector, and not the person who put in the park. The “seller” to me, the entity I got the deed from, is the county collector, not the developer. The collector “seller to me” cares less about what goes on in the park. Besides, I notice there are a lot of items in the restrictions and by-laws that are not being followed. How do the restrictions and by-laws affect me? You have any thoughts or insights on this. JohnLocke, you have any input. Anyone else.
JohnMerchant -- Let me see if I can clear my post up a bit.
You wrote “Your post is somewhat confusing because you speak of buying 2 MHs on land...same lot? Different lots?
1. First MH I talked about is a separate issue. It was a foreclosure sold by HUD and does not come into play in my question. It was a different parcel of land with MH on it. I bought both the land and MH from HUD. Several miles from the two lots purchased at tax sale. Guess I should not have even mentioned it. ( counting this one would make a total of three parcels of land)
2. In my question I tried to say I purchased two separate lots at the tax sale. I did not purchase any MH’s at tax sale. Lot #10 had a MH on it, but it was taxed as personal property as it belonged to person living in it and therefore it did not sell at the tax sale. I only purchased the lot, not the MH at the tax sale.
3. The second lot # 3 was an empty lot which I also purchased at tax sale.
4. Now another mistake I made in my original post was that although I thought this was a mobile home park, as there are only mobile homes there – no stick built houses, I discovered this property is called a subdivision and not a MH park. I’m sure this will change all answers.
5. But the question still remains. The recorded by laws and restrictions tells what a person can and can not do and must get “sellers” permission to do whatever. My question is “if I bought the two lots at tax sale from the county collector (not the developer) is the collector the “seller” or is the original person putting in the subdivision still considered the seller”.
Here is part of original post that I have reworded. -- I read the restrictions and by-laws for the subdivision and it always refers to the fact that things must be done according to the “sellers” wishes or approval. So how would this work if I purchased the lots from the county collector, and not the person/developer who put in the subdivision. The “seller” to me, the entity I got the deed from, is the county collector, not the developer. The collector “seller to me” cares less about what goes on in the subdivision. Besides, I notice there are a lot of items in the restrictions and by-laws that are not being followed. How do the restrictions and by-laws affect me?
Note. Just found out today (11-25-08) that the bank has foreclosed on most of the lots and they are going to auction them off in about 2 weeks. What will this do to the restrictions and bylaws?
If there is any way to get your hands on the original promissory note and copy of the title you may be able to find out if the whole package ( the land and the mobile) were considered as security for the loan or if just the land was the security. This should all go back to how the loan was originally written and not what the seller or the person living in the home says. If the title has been given up then there is no question that the whole thing was considered real property. You can do a title search at the DMV in most states. This should answer most of your questions but, I would also try to get my hands on the loan and security documents.....
The best description I have heard is that a mobile home is transported to the site on wheels and is built on a metal frame.
A modular/manufactured home is built on site with typical frame construction, though various panels or modules may have been factory assembled.
[addsig]
Thanks all for this input. After a manufactured home is fixed to a foundatin, does it appreciate/depreciate like a regular frame home? Or do they just continue to depreciate like a car?
Also, what target market is interested in these properties? How would I market this effectively to attract potential renters/buyers? For example is it cost, location (other manufactured homes in the area), maintenance free, condition, no HOA ... etc that buyers find attractive about these homes?
Loon mentioned a $5000 deal. Is this the typical price range for these manufactured home deals?. Property is located in California and the purchase would include the Land, property and all associated rights just like real property.
I guess I am trying to determine if the property could appreciate again once the market recovers.
The property in question is not a mobile home. It is not in a Mobile Home Park. it is on its own foundation, in its own lot, has its own parcel number ... etc. It is real property and not mobile home which is considered personal property.
The house is located on a street with a mix of similar manufactured homes and the next subdivision over is filled with site built homes. Again, this is not a typical MH park or anything, it is a normal subdivision of nice manufactured homes anchored to foundations. there are no "tin cans" here.
In my research, I have found that lots of people hear "manufactured" and immediately think tin can (as above). How does one make the distinction and is there truly a distinction in this case?
Many types of structures are built in the factory and designed for long-term residential use. In the case of manufactured and modular homes, units are built in a factory, transported to the site and installed. In panelized and pre-cut homes, essentially flat subassemblies (factory-built panels or factory-cut building materials) are transported to the site and assembled.
I know I am replying to very old post but I got this here and feel like reading this. There are still many people getting confuse in manufacturing and buying mobile homes and when they consult to any agent they find it really hard getting up to the decision. But after knowing this I find it worth explaining this to my clients.
I would try to give the mobile home FREE to a handyman who can rehab them for about 4 to 5k. & have a cheap place to live or allow him to sell for a profit., or even rent out, per your approval of renter.. You get the lot rent...WIN/WIN..
I like the first post and think that should be your first plan of attack but, I would offer it for only $100 so that the buyer has some investment right out of the gate. I would offer it to an investor or someone else that lives in the park or one of thier handy friends that needs a cheap place to live. Why take out a home when they are so expensive to bring in and cheap to rehab from the ground up?
As a second approach I would find the closest farms and offer them to the farmers for free as storage, shicken sheds, whatever....
[addsig]
I think one can be quite updated with some mobile homes that are not that much older. Finding mobile homes some time tedious but it can be not that tough.
You might want to check out this web site.
http://www.lifestylesunlimited.com/
I was looking into this organization, but iI am currently back in Missouri.
Jim
To be able to find a lender that will even look at financing a manufactured home as an investment is hard to find! Conforming and government guidelines only allow for owner occupied and vacation home financing for manufactured homes. Therefore you need to find a lender that will portfolio the loan.
From the information you stated, it sounds like a program that 21st mortgage use to offer, however they typically only charged 2 points. Google them to get the website and ask if they still finance investment properties.
In Florida, we have seen our share of Morphidite...MH-/Stick homes. For the most part, they are not eligabile for mortages, since they are illegal structures.
You can buy & rent. You can buy & sell carrying paper. But you really have to STEAL it in order to justify the problems in finding a cash buyer.
[addsig]
Pass on it. No lender will fund. Cut off date is 1976.
Arseknow,
Glad to meet you.
In your agreement with the seller, on the note you are signing does it say anything about, if units are sold the note becomes due and payable?
This is where the conditions of the note would be located.
John $Cash$ Locke
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thanks for your input John it is very much appreciated
Faulky
Nice post. Thanks a bunch. I purchased a mobile home about a month ago. Not sure if I want to fix and rent or fix and sell. Came with 4 acres. Thinking about splitting land, writing up a shared well agreement, selling mobile and two acres and see what I can do with the other two acres. Anyway, good post.
Now on to my question. A little background first. I purchased two mobile home lots at a tax sale couple of years ago. Just got title (Collectors deed) about a month ago. One lot, almost an acre, had a mobile home on it and guy was buying the home from someone. OK with me, mobiles are personal property so it didn’t come with land. Cheaper for him to pay me the $150 month rent than to move the home. Second lot is empty as of now but has the metal tie down thingy’s where a home had been so believe it may have septic, sure hope so. Will check it out when I get time.
Now the Question. I read the restrictions and by-laws for the mobile park and it always refers to the fact that things must be done according to the “sellers” wishes or approval. So how would this work if I purchased the lots from the county collector, and not the person who put in the park. The “seller” to me, the entity I got the deed from, is the county collector, not the developer. The collector “seller to me” cares less about what goes on in the park. Besides, I notice there are a lot of items in the restrictions and by-laws that are not being followed. How do the restrictions and by-laws affect me? You have any thoughts or insights on this. JohnLocke, you have any input. Anyone else.
JohnMerchant -- Let me see if I can clear my post up a bit.
You wrote “Your post is somewhat confusing because you speak of buying 2 MHs on land...same lot? Different lots?
1. First MH I talked about is a separate issue. It was a foreclosure sold by HUD and does not come into play in my question. It was a different parcel of land with MH on it. I bought both the land and MH from HUD. Several miles from the two lots purchased at tax sale. Guess I should not have even mentioned it. ( counting this one would make a total of three parcels of land)
2. In my question I tried to say I purchased two separate lots at the tax sale. I did not purchase any MH’s at tax sale. Lot #10 had a MH on it, but it was taxed as personal property as it belonged to person living in it and therefore it did not sell at the tax sale. I only purchased the lot, not the MH at the tax sale.
3. The second lot # 3 was an empty lot which I also purchased at tax sale.
4. Now another mistake I made in my original post was that although I thought this was a mobile home park, as there are only mobile homes there – no stick built houses, I discovered this property is called a subdivision and not a MH park. I’m sure this will change all answers.
5. But the question still remains. The recorded by laws and restrictions tells what a person can and can not do and must get “sellers” permission to do whatever. My question is “if I bought the two lots at tax sale from the county collector (not the developer) is the collector the “seller” or is the original person putting in the subdivision still considered the seller”.
Here is part of original post that I have reworded. -- I read the restrictions and by-laws for the subdivision and it always refers to the fact that things must be done according to the “sellers” wishes or approval. So how would this work if I purchased the lots from the county collector, and not the person/developer who put in the subdivision. The “seller” to me, the entity I got the deed from, is the county collector, not the developer. The collector “seller to me” cares less about what goes on in the subdivision. Besides, I notice there are a lot of items in the restrictions and by-laws that are not being followed. How do the restrictions and by-laws affect me?
Note. Just found out today (11-25-08) that the bank has foreclosed on most of the lots and they are going to auction them off in about 2 weeks. What will this do to the restrictions and bylaws?
Sure hope I have made this clearer.
If there is any way to get your hands on the original promissory note and copy of the title you may be able to find out if the whole package ( the land and the mobile) were considered as security for the loan or if just the land was the security. This should all go back to how the loan was originally written and not what the seller or the person living in the home says. If the title has been given up then there is no question that the whole thing was considered real property. You can do a title search at the DMV in most states. This should answer most of your questions but, I would also try to get my hands on the loan and security documents.....
How do you estimate the value of a mobile home before making a deal?
[addsig]
The best description I have heard is that a mobile home is transported to the site on wheels and is built on a metal frame.
A modular/manufactured home is built on site with typical frame construction, though various panels or modules may have been factory assembled.
[addsig]
Thanks all for this input. After a manufactured home is fixed to a foundatin, does it appreciate/depreciate like a regular frame home? Or do they just continue to depreciate like a car?
Also, what target market is interested in these properties? How would I market this effectively to attract potential renters/buyers? For example is it cost, location (other manufactured homes in the area), maintenance free, condition, no HOA ... etc that buyers find attractive about these homes?
Loon mentioned a $5000 deal. Is this the typical price range for these manufactured home deals?. Property is located in California and the purchase would include the Land, property and all associated rights just like real property.
I guess I am trying to determine if the property could appreciate again once the market recovers.
Thanks.
JS.
Again, thanks for all the replys.
The property in question is not a mobile home. It is not in a Mobile Home Park. it is on its own foundation, in its own lot, has its own parcel number ... etc. It is real property and not mobile home which is considered personal property.
The house is located on a street with a mix of similar manufactured homes and the next subdivision over is filled with site built homes. Again, this is not a typical MH park or anything, it is a normal subdivision of nice manufactured homes anchored to foundations. there are no "tin cans" here.
In my research, I have found that lots of people hear "manufactured" and immediately think tin can (as above). How does one make the distinction and is there truly a distinction in this case?
JS.
Many types of structures are built in the factory and designed for long-term residential use. In the case of manufactured and modular homes, units are built in a factory, transported to the site and installed. In panelized and pre-cut homes, essentially flat subassemblies (factory-built panels or factory-cut building materials) are transported to the site and assembled.
I know I am replying to very old post but I got this here and feel like reading this. There are still many people getting confuse in manufacturing and buying mobile homes and when they consult to any agent they find it really hard getting up to the decision. But after knowing this I find it worth explaining this to my clients.
I would try to give the mobile home FREE to a handyman who can rehab them for about 4 to 5k. & have a cheap place to live or allow him to sell for a profit., or even rent out, per your approval of renter.. You get the lot rent...WIN/WIN..
I like the first post and think that should be your first plan of attack but, I would offer it for only $100 so that the buyer has some investment right out of the gate. I would offer it to an investor or someone else that lives in the park or one of thier handy friends that needs a cheap place to live. Why take out a home when they are so expensive to bring in and cheap to rehab from the ground up?
As a second approach I would find the closest farms and offer them to the farmers for free as storage, shicken sheds, whatever....
[addsig]
We sold a property with a Double Wide MH ....but, per contract, we had to remove the DW within 10 days of closing.
We advertised "Free Double Wide" on Craigslist and had 18 people visiting the site, one of which put $1,000.00 down as earnest money to remove the DW.
He performed and got his $$ back. Win-win.
[addsig]
I think one can be quite updated with some mobile homes that are not that much older. Finding mobile homes some time tedious but it can be not that tough.