Thinking of buying a forclosuer


#1

I am not a dealer or anything with mobile homes or manufacture homes but I looking at buying one. You guys seem to be the ones to ask.

The one I am looking at is being foreclosed soon, it


#2

questions, but you really don’t give us much info to help you answer them:

  1. Where is the home located?

  2. how much land goes with it?

  3. How is the land zoned? Can another mobile be placed there?

  4. Is this investment property? Or will you live there?

  5. How will you fund?

Greentree in florida is very likely to take 40-50% off loan basis to clear these off their books. Unlike repo homes, these L/H foreclosures are expensive to hold. Property taxes, insurance, utilities are all on Greentree.

New folks to this forum can get get good advise…but none of us are mind readers…this is not meant as a dis, it is the absolute truth.

The reason I ask about funding is usually preliminary title insurance is already in place and they are ready to close in under 10 days…it is good to have funds in place prior to placing a bid.

Good Luck,

Greg


#3

Greg thanks for the interest.

  1. The home is in Nebraska,

  2. It’s about a quarter of an acre

  3. I think its zone farm/recreational and no there is not enough room for another place.

  4. Yes, investment, will rent it out and then use it as retirement home in 15 yrs.

  5. We will pay cash

I just want to clarify that this home is a manufacture home and it


#4
  1. I do not know the nebraska market …at all.

  2. I love 1/4 acre lots…perfect for one home.

  3. Mobiles ok to place there? A Compliant property?

  4. what will a home like this rent for in this market?

  5. Quick and easy

In Florida, a defaulted 80K loan package will sell for 40-50K. It would need to rent for 850 per month in my market to work. Property taxes, insurance, vacancy, repair would be 3-4K per year. work the numbers backwards and 10,200 gross rents less 4K expenses equals 6K NOI…on 40K investment I would be not that happy with this amount of yield, but plenty of investors are.

Leveraged you would get much better yield, with more risk.

I have bought several L/H’s from Greentree but I flipped them for 20 -25K cash profit…they did not make good choices usually for a hold strategy.

Just my 2 cents,

Greg


#5

Greg,

question 3, I don’t think another mobile home would fit. The house that is there sits almost in the middle of the property; they would be right on top of each other.

  1. The rent for that area would probably run about around $600. a month, but taxes and utilities are low. I don’t know about insurance yet and I don’t think repairs would that big of a cost because house is only about 4 years old.

Do you think it would be a good investment?

What would you top price be?

How should I approach them?

Thanks Quint


#6

I have found there is always a very real cost in repairs on rental units regardless of age…

Typically, a tenant moves out after 1 year, we will need to patch and paint walls (approx 400) replace 2-3 blinds, put up some molding.

About 1/2 of our rentals are all laminate flooring so the cost of carpet cleaning or replacement is eliminated. As units become empty we convert them to laminate.

This past year we spent an average of 2610 per unit in repairs…this includes appliances, cleaning, simple repairs. We had a 4/2 doublewide get torn up with tenants that were in the unit for 6 months that cost us 9K in repair. Windows, cabinets in the kitchen, tub enclosure, holes in walls and ceiling, paint. 9K in one unit!!

greentree has to get three bids on all homes before they can sell here in Florida. They don’t short sell here…ever. Call them and place a bid for 1/2 of basis if these numbers work for you.

Without knowing your market I can’t really say how much you should bid. with rentals averaging 600 for a d/w 4 year old home, I would try to low ball an offer…maybe 31K all they can say is no and counter.

Good Luck,

Greg


#7

thanks you have give me some good advice, I appriciate it. I will tell you how it turns out


#8

Is there a place where I can look at what Green Tree has on thier

books as far as foreclosures?

Im moving to NC soon and would be interested in seeing if there is

anything available to get into…

Thanks in advance!


#9

GREENTREE REPOS

=ALABAMA 800-940-3581

=ARIZONA 800-328-8214

=ARKANSAS 800-576-1021

=CALIFORNIA 800-365-0089

=COLORADO 800-525-8799

=FLORIDA 800-874-1159

=GEORGIA 800-874-1159

=IDAHO 800-392-4276

=INDIANA 800-532-7768

=MICHIGAN 800-444-1968

=MINNESOTA 877-245-6267

=MISSISSIPPI 800-874-0793

=MISSOURI 800-392-4276

=MONTANA 800-548-2632

=NEVADA 800-365-0089

=NEW HAMPSHIRE 800-992-1018

=OHIO 800-686-6600

=OKLAHOMA 800-333-4482

=OREGON 800-562-2510

=SOUTH CAROLINA 800-922-0010

=TENNESSEE 800-234-7101

=TEXAS 800-772-5361

=TEXAS 800-292-7413

=VIRGINIA 800-669-2178

=VIRGINIA 800-234-7101

=WASHINGTON 800-562-2510

=WISCONSIN 877-245-6267

If you have not established a relationship with these folks before, it can be a bit discouraging to initiate contact at first. To be a sucessful bidder there I suggest you take the time to make contact with your area rep and try to get e-mail address for this one person. A cell phone number is better yet!

some things that have worked well for me:

  1. Be honest with them

  2. Don’t try to cheat them with low ball numbers…they quickly tire of the same peeps giving stupid bids like 1K for a mac daddy 2001 28X68 Skyline home. To deter you from this, they don’t return calls or e-mails.

  3. Fund quickly, at the end of the month is when you get the best deals…wire funds the same day you receive contract for home.

4.As Tony tirelessly points out, try to establish a personal relationship with your Bank rep…Greentree IS a Bank…kinda.

  1. A common occurarance here in florida is vandalizing of repo homes…broke windows, fridges gone, doors kicked. Maybe offer to screw up some ply over smashed windows for a decent price. (We put up 2 3/4 inch plywood over a sliding glass door someone broke with brick in November,invoiced the local Tampa office…we got our 150 invoice paid in April) This act has gotten us several homes at rock bottom prices. The home was 4 miles from our office but 140 miles from THEIR office. They now call us to do simple repairs that can save them thousands in damage.

good luck,

Greg