You’re getting pretty close, Rolf. I’ve been doing Lonnie deals for about 4 years and have only ever moved ONE home. There’s just no need to. Look at it from a lonnie dealer’s perspective . . . why go to the trouble, hassle & extra expense to move a home when there are PLENTY of GREAT deals to be had and you DON’T have to move them at all?! Seriously, think about that from the lonnie dealer’s perspective. Why would you do it?
Having said that, I plan to be moving some homes around this summer and here’s why:
In my area I get calls from cash buyers in the $10,000-$25,000 range. It seems the demographic that has ready cash is also the demographic that also has farm property or a lake lot they want to move the home to. Given that part of my agreement with the parks I’ve been working with is that I won’t move homes out, I’ve had to turn down cash sales where I would’ve made an instant $5-10,000 profit. So I will be buying homes in parks where the park refuses to work together and making those available to be moved.
I will also be moving some of these homes INTO my “pet” parks to help them fill up empty spaces. This is a good deal for them for obvious reasons. Here’s the MINIMUM I ask in return:
a) no lot rent until sold
b) no lot rent on ANY other home I own in the park until sold, even if it was already there when I bought it. This will allow me to increase the amount of inventory I can hold for sale (and thereby increase my sales volume and cashflow as well) without a great increase in hold costs. These are 300 & 600 space parks so this opens up a lot of other opportunity.
c) It would be great if they were also willing to pay for the move and, in fact, there are several parks here in the KC area offering $5-7,000 to move a home in, and reduced lot rent for a certain time period. I’m not in your area but if I were, given the size of your park, I would prefer to have you pay for the move as opposed to no lot rent on existing homes already in your park that I might buy.
So take your ideas 1-6 above, add a cash move-in incentive and I’d do it! For the right lonnie dealer you could even offer that cash incentive in the form of free lot rent for a year for his buyer and let him collect that directly from the home buyer, in addition to his monthly home payment.