N.j Newbie Getting Involved In My First Modular Homes
hello
this is my first post and i am new to this informative website. i have a small vinyl siding business and i am now trying to get involved in modular homes.
i don't know much about it, basically, i'm just reading info on the internet.
my landlord said he is interested in real estate investments. he does mortgages and owns three house. he'll put down the $ and i take care of everything else.
i spoke with my friend whose been a real estate agent for 7 years full-time and he is also interested. he looked for some empty lots and found one on main st. in paterson. the owner an older lady he says is asking for $55,000.00 but he feel he can lower it. the building next to the lot is a three family. there are other lots for 40,000.00 or less he says but they're in drug infested areas.
i went to one of the drug areas in paterson, which i will say there are many and about four blocks long there is a developer putting up modular homes everywhere, they bought all the empty lots and probably put 25 homes. just 18 months ago this area was full of prostitutes and drugs and for awhile i would read on the newspaper which would constantly mention how they were cracking down in that specific area, go figure now look what happens, anyway. four blocks down the road there are empty lots and abandonded homes. i believe they'll start doing the same there also.
i spoke with the developer and he said, once i get the property he will install a two family modular home with a downstair garage, it will include everything, foundations and including the front sidewalks newly cemented because of requirements, everything will be taken care of, all the owner and tenants have to do is drive up and move in. no disrespect to anyone, he seemed so mobster like, smoking his thick cigar and rolling out his roll of hundreds while giving me his business card. he has this street wise manners, i'm connected, you know what i mean, nobody can get the job done here like me, my reputation, i know all the politicians and inspectors, get the job done. he warned me also how others will tell me they can do it cheaper but there are many add ons they won't mention and that's how they'll stick it to me. he's giving me everything up front. the cost $240,000.00. i believe they're penn lyon modulars, a nice economical home.
i don't know other builders like them and i am seeing their work and they're getting the job done.
i have a friend who i know is a reputeable building contractor, i'll talk to him also. does anyone know someone good in my area.
after investing 240,000 and paying for the lot for 50,000 can a profit be made for selling this in paterson, n.j. i have to present this to my investor.
i know i will eventually learn the process quickly however, i have to minimize all errors for this first project.
i know this is a lot, i just want to thank you in advance. thank you.
$300,000 for a duplex seems steep to me, but then again i don't know about the real estate market in Patterson NJ. That is up to you to learn. I have a builder that will build me a duplex for less than 100,000. Each side is 3 beds 1.5 baths. For a little extra he will build 2 full baths. I think Nationwide modular duplexes are only around $115,000. I think he is trying to rip you off.
Generally it is the land price that differs the price of homes around the country. BUilding materials are fairly static with +-10% nation wide.
Here is a rule of thumb, a modular costs $12 per linear foot for joining the marriage line up and then whatever the bid amount is to repair cracks etc. that aren't included. Generally on the 20 or so we have done 20-$25 a LF would cover everything. The pad/concrete is separate and could be figured at +- $300 a SY (though frequently I see it done for $250. A block foundation stem wall $1400-$2000 There are permits (plumbing and electrical, state permits often as well).
AN excellent modular (marlette) which is top of the line may run 100K-120K but I have never put in any that were more than 70-80K for a triple wide with a tip out.
I would say that 2oo+K seems outrageous!
Talk to a dealer in the area and see what their typical set up costs are. Additionally you can often buy used ones from them at a steep discount or reposessed ones from the factory etc.
Learn every aspect of this before you jump.
Randall
just to give you a description of the area. does anyone remember the movie "lean on me" about the high school prinicpal joe clark who carried a baseball bat in the hall ways. well, that is paterson n.j., it's what you call the inner cities, high crime, etc...
some areas are ok, and some areas you walk around with a bat
thank you for the response. i definetly will do my homework. i think some of you are from oregon and nc. down here in north jersey about 15 minutes from manhattan, the labor is expensive.
no experience in construction starts at 10 to 12 an hour. i would say 12 an hour. one year exp. carpenter makes 15 to 20 an hour and 2 to 3 years about 20 to 30 and more, but , minumim 20.
we have guys here who are good roofing and siding mechanics who take home 150 to 200 a day in cash because they don't have legal immigration status, they don't even speak english but they're incredible workers.
115,000 for a duplex sounds good but i wonder because it's in NORTH JERSEY, it cost more, but true 240,000 sound like a lot for just the home not including the land we have to buy.
rent in a decent part of paterson is 1000.00 a month for a 2 or 3 family and that's just paterson. next to clifton the same apartment would be 1200. and that's just i would say a lower middle class area. so it's pretty expensive here.
not even mentioning the 2 to 4 grand rents near by either.
The cost of the unit should be about the same no matter where you are. That is one of teh benefits of modular building. The minimal amount of work needed to prepare the site and set the house once it arrives is variable to your area, but no way should it be over $100,000.
Sounds like he's trying to take you for a ride.
$240K for a modular home in Paterson is too much. You may want to look into some of the foreclosures in Paterson, which are selling as low as $50k.
If this is going to be your first project you may want to start small and work your way up.
Mr. Fields