Is anyone here by chance , as a mobile home park, buying homes direct from the manufacturer without using the cash program but just buying the homes outright? If so , what is your minimum order size? Also how does it work with delivery, are the homes being placed directly on the lots and is the transporter from the mfgr also doing the install or is that getting contracted out? Will they place it on the actual lot or do you have your own transporter put it in there. I guess then if the manufacturer delivers onto the lot, who then is doing the actual install?
Additional follow up question. Within the 1 year warranty period, if there is an issue, do you handle the repair as the retailer and does the manufacturer reimburse you for the cost on that? Any info as to how the warranty issues are handled with the park being the retailer would be appreciated.
Thanks in advance for anyone who is willing to share input.
I’ve bought three homes from Tru all cash.
I hired a local installer to prep the lots. Tru then delivered the homes straight to the lot. Then the installer came back and tied the home down, leveled it, hooked up utilities, etc.
We had an exhaust fan go out 11 months in. We notified Tru, and they sent someone out two days later and got it fixed.
Also, fun fact, the warranty generally runs from the date of occupancy or sale, not delivery.
I believe several manufacturers have programs available for MHP owners for cash buys.
With Legacy (Fort Worth & Commerce), MHP owners can buy homes at wholesale cost; however, there are a few requirements. The minimum number of homes that can be bought for cash is 2. The reason behind this is so as not to undercut the independent retailers that we have floorplanning arrangements with.
Regarding install and warranty - the delivery and installation can be coordinated by the factory; however, with an RBI license, it is usually more cost effective for a park owner to coordinate their own freight and install (just ask your park rep if you’re concerned about bids you’ve received or need a few referrals, we’re happy to help you).
The warranty in our case begins at the date of delivery. We offer both service requests (where contractors or employees from the factory come service the home) and bill backs (you get a local contractor estimate approved and Legacy reimburses you for the work once completed). In most cases, my clients use bill backs for items that are more straightforward simply because it is more convenient on their end.
If you have any additional questions, feel free to reach out to me at firstname.lastname@example.org. Our homes are also available under the CASH program as well and I have done several park deals for Legacy homes within the CASH framework.
Thanks John , appreciate the response
Be careful with Legacy Homes. I bought two homes from them paying cash. They delivered them to Northern Colorado and there were major structural problems with both of them. Local installers would not touch them because they did not want the liability. Six months of calls to Legacy were ignored. Legacy ignored my bill back request (I had to get the amount approved before spending money for bill back) After calling the State of Colorado and complaining, they finally sent a crew up with a “saws all” and a jack,. They cut all of my floor joists and sistered in new wood. They jacked the house up by the perimeter wall, lifting the frame 2" above the foundation, leaving it that way. The floors continued to buckle. I was forced to buy one of the houses back, because the new owner was threatening to sue me. I still own the house an am forced to rent it. There were at least two other houses shipped into Colorado at the same time with the same problem. Like I said be careful with Legacy.
I now buy houses from another manufacturer. If you talk to them directly and buy a couple of houses at a time, they will work with you.
What homes did you start buying after that?
Champion Homes. Look for manufacturers that are close to you as shipping costs eat up a lot of money. I had a guy tell me that he could sell me a great house built in Indiana, but it would cost almost $10,000 to ship it to Colorado. He was trying to be competitive with a local house that I paid $3000 to ship. In my mind, the extra $7000 came out of the quality of the house. The cost of fuel came from somewhere.
Another way to find deals on houses is to partner up with a local house dealer. Let him use your houses as models while you are looking for buyers. You paying for the houses frees up his cost of putting houses on his sales lot. It is not quite as cheap as buying direct, but the dealer might end up selling one of your houses, or provide a house and owner for one of your vacant lots. The dealer has incentives to sell more houses from the manufactures. Selling you an extra ten houses a year may put him in a better price bracket.
Every deal has to be win-win for both parties to continue the deal.