Hmmmm, I Have A Deal I Do Believe
Well, having just returned from what many of you here prompt eager guys like to do....that being to just get out there and do it, I think I may have found a couple of small deals (after a weeks worth of work).
Two MH's, both are asking $3k (and I'm going get them both for less), and both are free and clear of any incumbrances (yes I checked). Ones a senior community, the other a family. Both have nice exteriors, but need interior work (one, the senior owner, purchased all the materials to fix the unit, carpet, french doors, etc, but has he has no energy to make the repairs).
Both are FSBOs that have not advertised other than the sign in front of their properties. My thinking is two quick flips (pending approval of new owner by the park). With a little marketing, should be able to squeeze a profit, right? Rent is $460 on one and $480 on the other.
This sound good to you lads?
Your thoughts appreciated!
Franko
Just because you can buy something doesn't mean you should.
What is the purchase price on the mobiles?
How much work do they need ($$)?
How do you plan to finance your purchase?
What are the mobiles worth once you get them fixed up?
You're on the right track but we don't know enough to tell you if you have a good buy.
Many thanks for the reply, and all good questions. Both units want (but won't get) $3k. One older gentleman actually had no idea what to ask for (sad).
Anyway, I'm thinking I can pick them up for maybe $1-2k or thereabouts, a bit of fixing and some marketing, and I can flip them for $1-2k profit each maybe?
In one of the units, the owner had purchased new carpeting, french doors and cabinetts, but got injured and couldn't do the work, so they sit there. I'll need to assess the interior of this unit, but the exterior look absoluted fine to me (and I'm not the MH type). Looks like a great flipping op. Should I consider partial (50% financing) or should I just sell the darn think outright. It seems that holding these things is rather risky, given the managements control over the property.
I know there's probably a void in my knowledge base relative to MH's, but a friend of mine owns several parks, and over the years, I've gained a bit of insight, though not much.
Thank you, for your help!
Ooops, forgot to tell you. The purchase of these units will be self funded, so I plan to use cash, though not until they've left the premises.
Quote:
On 2004-11-13 18:28, franko6365 wrote:
Ooops, forgot to tell you. The purchase of these units will be self funded, so I plan to use cash, though not until they've left the premises.
This is what you SHOULD do...
Put options on both mobiles, find a buyer for whatever price you intend to sell for; therefore, you'll be lined up and squared away for completing the deal. What if your expectations flop?
Well, options sound good on paper, but I can't imagine any of my sellers considering it. They're not going to move out with an option in hand. They need cash.
The one purchase I made for $2k actually had folks with $3k checks in their hands trying to buy, but they couldn't pass park credit approval. We'll see. I'll give you a full report once sold.
Keep in mind that MH are not appreciating in value they only depreciate. If it is on a rented site and does not have property to go with it, your prospective buyers will probably not be able to get any financing on it. Just a thought! :-o
I don't have a problem with buyers finding financing. You provide the financing - that's where you make your money. The problem that I have is a 1-2k profit being construed as a deal. Have you read any of Lonnie's stuff on deals on wheels? It just seems like a lot of headache, management, fix up, park control, etc. just to make 1-2k. You can aquire many properties with 3k, have full control, and have a much higher profit margin than 1-2k. What are your goals? How many of these deals would you have to do to make a living or retire? How many hours do you have in your day? Projecting a 1-2k profit just doesn't leave much room for error or miscalculating. Not for me anyway.
Good Luck
Larry
Well, good questions. I guess I have a two pronged exit strategy.
1. A quick flip to another investor for $2k profit. Spoke with a gal who lives in the park today who brokers MHs in the park. She can't believe I was able to snap up the unit for the price I paid. The cheapest thing in there is $13K (it's a real nice family park in a great community). She was surprised she didn't know about the sellers (no sign in their window, just a classified).
2. I turn it into a Lonnie deal with a 48 month note at $208 per month and $500 down and sell the note off.
If I sell the note thought, I'm wondering what the discount on the note would be? Looking for cash to help make the transition to full time.
In my neck of the woods, the MH parks only allow owners to live in them, so renting them out is not an option.
here also MH's have almost doubled in value, in about a year, due to the housing market shooting up. Many about 100% in 3 years. So now people are desperate or in real need to buy somthing, so the price still climes
dont forget to figure the cost of your labor to fix up. that should be worth somthing. :-?
I'm here in South Florida, so we've experienced similar climbs in value. It's very hot here too (no pun intended).
We're about to see what happens. Concluded my deal today!
Quote:
On 2004-11-15 18:54, skimpel wrote:
Keep in mind that MH are not appreciating in value they only depreciate. If it is on a rented site and does not have property to go with it, your prospective buyers will probably not be able to get any financing on it. Just a thought! :-o
Sure they can get financing for it. As a matter of fact, a personal loan can cover a MH for $2K.