I was SO interested (and even asked to be considered) in your one year offer to work with someone in the mobile home business. There was one message on this forum by the person that was chosen and then nothing else. I feel that all the regulars must know the story but the rest of us do not. Can you share with us the outcome? I think it is fortunate that you did not chose me in that I have plodded along locally rehabbing and “Lonnie Dealing” several old mobile homes. My return on investment is VERY good compared to a bank CD. I wish to thank all you folks because without you I would have never considered buying a mobile home. I still remember my Realtor putting his head on my breakfast table and pounding his fist saying “NO NO NO” when I told him I was considering buying a mobile home. THANKS!
I was SO interested in your postings about the park that you offered to take over that was bleeding cash. If I remember correctly, you even ask for a significant monetary infusion to get the park back on track. Is there any news that you can share?
That is a great question and I am glad you brought it up. I planned to meet with Greg over a month ago. I have always been able to give Greg a call and chat for a while. he seemed to just disappear. I have been more involved over at another forum but for the last week I have been going back and forth on creating a similar post here. I know Greg was sick last year and I hope that isn’t what’s going on now…
I really hope you’re doing well Greg! My dad asked about you too! lol.
I was the person that was going to work with Greg. I believe I posted before about this, but I guess it’s possible I had a serious brain fart & just thought I did.
We had 99% of the details worked out & thought we were good to go when I made my first post about the deal. A few days after that a major monkey wrench was thrown into the works that stopped things cold. I’m not comfortable sharing any more detail than that other than to say that it was not anything that Greg or I caused or had any control over.
I can’t speak for Greg but I can say that I would be ecstatic if I had an opportunity to work with him in the future.
Well, I don’t know what to think! This has been a group that has stated many times that they will “tell it like it is”. All at once the main players have “gone”.
I am not trying to cause trouble. I still feel that I OWE all of you! In the last month I have purchased three mobile homes. I feel I can double my money by using the knowledge that you have willingly passed on. I THANK you.
I truly hope that everyone is OK! Thanks again for your sharing! I have tried to tell other folks about “tin cans that spit out money” but they just seem to nod their heads and keep on going back to the $8/hr JOB.
I think most of the older people just check in occasionally, but we are still here. I know I’ve been super busy in the last year.
Just wanted to let you know that telling other people about mobile homes can just be a waste of breath- it takes a special person to see beyond the $8/hour that feels secure. And that’s why we can do our deals I guess- not so much competition.
Anyway, congrats on your success. Keep talking to people about what you do- when they want the returns without the headaches they become good sources for private lenders.
Life is whats happening on my end. Little league baseball, family events, remodeling my home oh ya and then there is that thing called the MHP business that I dabble in. Business is great. We just brought in our first 2 new 16X80 homes to sell. The cards are still out on that. Darrel an addition on what Anne said - very few people will ever do anything to acheive financial freedom no matter what you show them or tell them. Congratulations on your efforts and success.
Debt finacing will be my greatest challenge in the up coming years. My turn around developement park needs about $1 mil more in capital to fill the remaining vacant lots. If we cant get the money we will have a nice profitable 85 space community and 60 other lots to grow grass on.
I have been plodding along with one Lonnie (sorta) deal after another. I just bought #20 and if everyone pays my net net each month is $3500.
I have recently looked at a five parks package in two small towns that are only 33% filled. I think they could be bought with a 9% cap just as they stand. There is a total of 221 lots with 73 occupied. The fill in cost would be tremendous. Also, there is the question of the demand for MHs. All lots are 50x100 so could accept a 16x80 I am told. This is not a “question” as such-------just turning it over in my mind.
I know you didnt pose a question about the 221 lot portfolio, but I feel the desire to respond anyway. 9% cap is not even close to a good deal for a 33% occupied package 15-20% cap would be more realistic. Now if the demand was high for MHs and you had stacks of money laying around making nothing the scenario would be different. Dave Reynolds from the MHP Store website posted a spreadsheet of very informative information outlining closed deals and at what cap rate they sold for in different quality parks. High vacancy is a horrible obstacle in this economic/banking environment, because capital is just not available to infill large communities. Look at all the beautiful large REO parks listed for sale these days. I am talking about communities with millions of dollars of capital improvements that are just sitting empty. Most of my research on these communities has lead directly to the fact they ran out of capital to infill with. Again I know you didnt ask a question, but because I am involved in a community that requires major capital to complete I felt the need to write.
I was secretly fishing for a comment from someone. I had already come to the conclusion that this thing was not something I should pursue. There ARE 15 or so MHs sitting idle that a Lonnie dealer could probably do OK on. They are to far away for me to tackle.
Another comment please: The project has very low occupancy yet appears (without research) that it would pay for itself with current income. Would there not be room for a tremendous upside by filling even some of the already developed lots and getting some of the vacant trailers back into service.
Yes you would have tremendous upside, but at what cost. How much will you have to spend on each infill home. Debt financing or capital to buy homes is my concern. Plus the availability of homes is a problem we have in NC. Another thing about high vacancy is the cost to maintain the vacant lots or vacant homes. Plain and simple in my experience it is expensive to maintain open space and vacant lots. When I buy my next community it will be one with 85% plus occupancy. I dont want the infill headaches again unless something changes with mobile home conventional financing for park residence.
Without the “street dealer” to feed these large MHP’s a well-funded big time sales operation is required. From what I know of SD, cheap repos are hardly in abundance, so a new home biz model would be needed at least in part to fill such a project. Big upside yes, but only if a big and effective sales operation is in place.
I can’t help but wonder if a portion properties may be more valuable for other uses?
If so, maybe consolidate MHP operation onto a “right size” portion and sell off the rest.
It is 10pm and I have just arrived home (wife already in bed) from working with a promising prospect in the Lonnie deal business. He knows a lot about residential systems and is willing to learn. He seems to want to move above the $8/hr level which I think he now earns in the food service area. We were installing a shower and tub surround in a “garden” tub.
I bought this 14x70 for $5000 and will put another $1000 into fixing it up. I feel I will have no problem selling it for $12000 with no money down and monthly payments for 48 months at 12% or so interest rate.
I want to thank you guys for your input concerning the “low occupancy” parks that I looked at last week. I feel that these parks are very over priced at what they are asking considering the occupancy and location. I would NOT want to be the owner or the bank. I will watch them and will consider pursuing at a later date (maybe at half the present asking price).
If things change you can be assured that I will ask for you comments before I pull the trigger!
How many have you sold for nothing down and how well has that worked out. Traditional wisdom is: No skin in the game, no desire to take care of the home or care about payments.
There is no reason for you to remember but I think we met in NC at a Boot Camp.
I have now bought 20 old mobile homes two of which I sold for cash. One I had about $7500 invested and sold for $12000. The other I bought for $2000 then did about $1000 to upgrade and sold for $6300 in about one month.
I have sold four on contract for deed, all are still active but I have had to be flexible. All still want to own their trailers but most have been behind on payments (up to date at the present time). Three have experienced a divorce, change of jobs and low demand for yard work. One has lived up to his obligations.
The rest are rented except for a 12x60 (bought for $2300) that is just about ready to put on the market (should go for “net” $210). The renters come and go and are slow. I have had to sit down with two and tell them that it is just not working out and they have agreed to move. I had one young man promise that he wanted the trailer and could afford it-----moved in and paid only a token amount then moved out with no notice. The rest pay on or near the due date.
I may be working on my first true Lonnie Deal-------people are rentng but want to own-----we will see.
Good luck. I mean that sincerely, but we have found that once they get behind there is pretty much no chance they can again catch up - unless it is tax season. Of course, then the same ones have the same excuses the following month - their “wealth” has been spent!
We tried flexibility with a few people. It worked great for them (for awhile) but not so much for us. They promised something that they did not deliver, thus are no longer in our community. We have found our flexibility having a shorter and shorter piece of elastic! Cash buyers do not exist in our world; of course we are selling a newer product at premium prices, too.
Our manager recently had a newer tenant come to her and ask to have his payments reduced. He is in our lowest price bracket as it is - in one of the older units. The answer was a resounding NO. That has never worked for us either - within a few months of lowering payments to “work with them” the situation has not improved. This particular guy has half the park over routinely for barbeques with him providing the food. Think he should pay his lot rent and house payment first?
Thank you for your message. I posted the original message and got no concrete answer to my questions. I really would like (and feel I deserve) to know!
Again, I don’t want to cause trouble but I feel we as part (small as it may be) of this forum should not be left in the dark when two stories are HYPED to the max and then dropped with no follow up.
If you read the 3rd post in this thread you will have the exact same information that I shared with the “main players” and/or “regulars”. I can assure you that I have not disclosed any other details about why the deal fell apart.
I’ll repeat myself in case it wasn’t clear…the deal never took place due to external forces that were not under the control of either Greg or myself.
I was just so interested in both the situations. I did not mean to upset anyone. I truly hope everyone is OK. I will say a little prayer to that effect.