Mobile Home blue book
In one of the previous message groups, it was mentioned using the NADA for mobile homes to show a seller what the mobile home is worth when you put an offer out. $3000 I think was the value in the example +$100 for equity. So he says sure, here's the deed and you get the property. (I know, not quite that simple, but leads to the main question)
How do you sell this for 7k? I saw that as the suggested resell value and had no idea how you could do that? What if the new buyers come at you with that same book?
Also, are there any more books specializing in mobile home deals out there that ya'll can recommend?
Thanks!
Joshua Caine
nightwo1f
Fairly simple, you are advertising for no qualifying buyers, meaning they have no credit, little credit or bad credit.
When someone starts about the price or interest rates with me, I say "Oh, you want to do this deal the conventional way, let me go to my car and get a credit application plus about 4" of paperwork for the bank". This always end this conversation about what I am charging for the property or the intersest rate.
You pay for how good or bad your credit is the higher your FICO score the better interest rate you get, you help someone purchase that normally would not be able to purchase a home.
John $Cash$ Locke
So on this you're actually selling the financing rather than just the mobile home itself. You buy at 3K, and sell for 3.5k + financing? Say half down, and 2000 over 3-5 years + lot fees?
Thanks
Joshua Caine
Joshua,
It is done everyday, say you buy a new car if a person has shakey credit they do not pay what a person with great credit pays for the same car.
Remember it is only business, as much as we all like to help people, we need to separate business from our personal feelings.
I volunteer for the Society for the Prevention of Cruelty to Animals, I head up their vehicle donation program. My way of giving back to the community, I believe a person should give back, and not be just a taker, but I run my business as a business.
john $Cash$ Locke
Right, I understand that it's a business. I do want to help people out, but only after I'm profitable. Do well, then do good is a motto I've heard I took to heart.
I'm just wondering how much you'd mark it up and how much you'd finance something like that for now. 10, 20, 30% markup plus 2point over financing? Add in the lot fee +20 bucks admin fee? Or are my numbers way off?
Thanks for the answers John!
Joshua Caine
There is nothing wrong with marking up the 3k m/h to 7k.
As long as that is the market rate for your locallity.
If you really need to help out those less fortunate, let the m/h go for less and/or a lower apr.
Don't feel guilty for being in business and trying to make a profit.
If you do, then do or participate in something bigger that you. Be a Mentor to underpriviliged kids - serve at a homeless shelter or kitchen, or whatever appeals to you.
Me, I mentor at the local Y, and it feels great to give something back.
Harry
Also, keep in mind, a mobile home is more like a car than a house. It is considered personal property and is titled as such. It also has a WHOLESALE price and retail price listed in the NADA book (as a website).
I'd bet that any NADA back figure that an investor is showing is the wholesale price.
Roger
nighwolf:
here is the link to the NADA book on mobilehomes. Happy investing:
http://www3.nadaguides.com/Values/ManufHousingTwo.asp?UserID=53070CC709F32&DID=37656&wSec=7&wPg=1080
J