What do you think of paying people to move homes into a community? What I would like to do is to pay $1,000 towards move in expenses for anyone who brings a home into my community. It could be for moving or set up or even skirting for all I care. As long as the people and their home check out, I think I would be better off doing this rather than trying to find homes to move in and then sell.
Any and all opinions are welcome.
Rolf
Rolf.
I have been paid $1500 for moving a used home into a park close to me. I bought this home while it was on a private lot and I moved it to the park of my buyers choice. This particular park paid 1500 for used homes to be moved in and 2000 for new homes. This was paid to dealers and such. I did not know about this until I was reading a post here on Creonline and someone mentioned parks paying this. So I asked the Manager and he said Oh yes the park sure does pay. so I got paid. If I had not asked he apprently was not going to offer.
I also own a park now,(did not then) and would rather buy a repo and move into my park and make the Lonnie Deal profit and the lot rent increase. If I had lots of spaces to fill I would offer cash, but just a few, I figure I will come out the same or most likely way better doing the Repo moving Lonnie Deals my self. I have had a new home and a used home moved into my park by individuals deciding to move in to our park, was not asked about paying and was not offering. Even if asked I would have declined. I only had 8 spaces to fill and pulled all my own Lonnie deals in and only have one more and will be full.
This is just what I do. But paying does have its rewards.
Mark C Tx
Rolf, I think you have a good idea.
Some other things to consider:
In your letter to home owners in other parks you could offer a referral to those who send a homeowner dirt tenant to your park.
You could offer to carry the note, after a $500 down, on the move and make some extra money on your money.
Or, you could simply offer a new big screen flat panel (about $1200) for new resident homeowners. That could be a big draw for you.
I saw Costco had a pair, one large and one small, flat panel Magnavox HDTV for $1200 at the Costco website. I think a small in the bedroom, large in family room would be a fantastic incentive. Especially if you promoted it for a move with the income tax return check.
I’d pull together a check list about the schools in your area, the features of country living and city access. and how they would outweigh the extra time getting to work/gas. (don’t I remember your park is about 20 miles outside the city?)
I think there are lots of incentives you could use to get people to invest that tax return in a move to your area.
Not a pro here, just thinking out loud.
Melissa
Rolf,
I think that’s a great idea. Here’s a couple things to think about.
In Ohio mobile homes in parks can only be set up now by state licensed installers (or personally by the homeowner). Plan reviews must be completed by the park for each lot with the state. And permits must be purchased and lots and homes inspected per the new OHMC regulations. A real PITA. So you’re going to want to directly coordinate all move ins, versus giving a buyer money and hoping that they can figure it out on their own. You might already be familiar with all that, but I thought I’d mention it.
You could also offer free rent for any move ins, perhaps enough to offset the move. Or you could pay for the move, and let the tenant pay you back monthly with lot rent until the cost is reimbursed.
If you do this, I would recommend finding a good licensed mover who also installs the homes, and only letting that mover bring homes in (if you’re the one writing the check).
Karl
Rolf,
I’ve argued this as a valid infill method for some time! (I believe we even spoke about it) to date I’ve yet to purchase a property big enough to support the idea but here’s my reasoning…
Current infill strategy: Buy home move in and LD off in order to collect lot rent for years…
Cost of home let’s say 5k (cost are going up and double this in some areas)
Rehab Cost 2k
Cost of move and setup to code 3k
Total invested 10k Sold on a higher end Lonnie Note for 15k 1k down netting $250 a month a 12.75% brings the term to 84 months. Yield 29.82% and a potential profit of 12k. Not bad plus you get lets say 200 a month in lot rent so your real total profit is 37.8k and a realized effective return of 62.21% not counting the cost of the land which you pay for wether it’s empty or full.
Instead lets say we used 9k to move and set 3 homes that are paid for by some one else while filling 3 lots and collecting rents of 200 per pad for a total of $600 per month, taken across the same 84 months that results in a yield of 85.43% on your money and a total profit of 50.4k. All the while not having to deal with collecting on sub-prime notes, I love our Lonnie notes but I’m starting to understand why people like collecting money just on the dirt…
The only kink I can see in the game plan is the with a Lonnie note setup you are pretty much assured that you are going to collect payments for a long while as the home can’t be moved while you have a mortgage. Assisting in bringing in homes that are clear and free leaves the slight opportunity for the home to relocate on you at a later date when it might not be best for you.
Tear it apart folks! I truly believe this is a valid infill strategy and will lead to more choices for the home owners in your area and a general overall happier lot rent tenant.
Best wishes,
Ryan Needler
WOW!
Thanks for all the great responses and information. I’m doing placemat advertising in a couple of local restaurants (high class dining for this area) and this is where I will start getting the word out.
The problem I am having right now is that my infrastructure upgrade costs are eating up available cash. Ohio has just relaxed some of its Draconian rules about pad extension but it may only be temporary. My pads are small so I am extending all I can to 15’ X 67’ and replacing the underground water valves at the same time. One valve I pulled up was leaking easily a gallon a minute - you could have taken a shower under it. It just seems to me more prudent to solve these problems now rather than spend all my money on moving homes in. The bigger pads also seem to be be desirable for people to have under their homes vs. dirt so I’m hoping this will help me get people in.
Thanks again for all the info and I’ll take any other suggestions you have.
Rolf