Amount Paid Vs. What to Sell For


#1

Hey Folks,

This is my first Post but I wanted to thank all of you for being so open with your knowledge and info. I have been very impressed as I’ve read through these threads.

Here is my question (and I will probably give away my naivety and maybe even slight stupidity). I just bought a 2000 Schultz Manor Hill 28X44 3/2 for $15,000. My first question, was that a good deal and how do I determine current value on this home and my second question is how do I determine how much to sell this home for.

Thanks in advance for taking the time.

Paul

Lindon, UT


#2

Is the home on a rented lot or did the purchase include the land?


#3

I own the Park that it sits in so it was the home only.


#4

Paul,

Welcome to the forum and thanks for posting about your deal. I have a personal friend who lives in a Schultz home and it is drop-dead gorgeous. They are certainly top-of-the-line manufactured homes.

Speaking from a Southeast market angle, we could easily sell that home in our parks for $34,900 with $3,000 down. The Utah market may be even better than that.

Most park owners don’t use “blue books” to determine sales price, down payment and monthly payment. Instead, we get to know our local market and sell accordingly.

Our goal on the repo homes is to at least double our initial investment on the sales side. In this case, you would be exceeding that goal and as Lonnie often says, “It’s good enough”.

Let us know how it turns out.

Steve


#5

If you’ve read Lonnie’s latest book, use some of his ideas. Show the home and ask what they can afford to put down and how much they would feel comfortable paying monthly. You should know in your head just what you want to make. If I buy a home, I always try to double what I paid in cash, but this does not mean that I have to sell a 15,000.00 home for 30,000.00. You could sell it for 22,000.00 and with the right interest rate, easily get over thirty thousand for it. Play with the interest rate and with the price until you and the customer are both happy. You could sell it for thirty four thousand with no interest rate whatsoever. The bottom line is that you need to reach your number, it really doesn’t matter how you get there…


#6

Thank you so much for all of your input.

The Park is actually in Northern Indiana. Any idea how the market is up there? I’ve got a huge in-fill project on my hands (120 pads with 108 still to fill) with no experience (Baptism by Fire I guess huh:)

Two more questions in this vein: 1) How many years do you typically want to create your notes for? 2) What are your best marketing channels for advertising and does anybody have some ads they’ve used that have worked well?

Thanks again for all of your help.

Paul