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Hi,
I have been scouring around looking for deals and found three mobile home deals. All three are with the same guy who is getting out of his positions in these places.
1. 1989 double wide, metal on metal, no leaks but needs lot of work inside he said. Asking $3800 but I got him to accept $1800 if I paid cash in the next few weeks. It is in a park and the lot rent is $200.00
2. 1992 Horton double wide Mobile Home on One Acre Lot asking $16,000.00 He said he has been getting $700/month on it. It is already set up for water. Needs carpet and paint. I could probably get him down more if I buy this and the first one.
3. Mobile home park: 3 double wides, 5 single wides 5.5 acres. Will owner finance with 10% down at 8% rent. I need to get more info on this one- like how much the rents are (can’t believe I forgot to ask this!) owner’s utilities, any extra lots or will county allow? Please let me know what else I should ask. There is a guy at my local reia who is looking for parks and I think I could wholesale this to him if it made sense. This investor has been through mobilehome U so if anyone else has- please let me know what info I should find out in order to make this deal easy for him to analyze.
Thanks!
KathleenCongratulations, Kathleen!
You have come across a lucrative opportunity. I do not know any other technical questions that you can ask, but one pertinent one would be, why is he getting out of his positions in the first place? Another would be to get an idea of what he is looking to get out of this.
I hope this helps.
Again, congratulations!
Sincerely,
Daveall sound like great opportunities.
On #3 – 10% of what? What is the asking price?
Get a contract first – subject to inspection – then figure it out later. Don’t let these slip past you. You can always renegotiate later.
For the park, you will want to know what the lot rent is and what’s included. Is each lot individually metered. If there an on-site manager?
Is it city sewer or on site sewer? What is the water source?go for it!
great- thanks for the encouragement!
I am going to see them all on Thursday. He is getting out of some of his businesses as he is in his late 70’s. He is reluctant to retire as he is a real tradesman. He also told me about two daycare centers and a cattle farm he has that he may want to sell!
On the park- he is asking $210K. He owns all the trailers and the land and gets “around” $5K/month. He pays water and garbage, tenants pay electric. They are all on septic tanks. Now he is saying he may not want to sell this one for another year- but I will make an offer anyway and keep in touch for next year if he’s firm.On the first deal- it is a single wide- not a double wide. I still think its a deal as its hard to find anything that cheap.
I’ll let you know what happens.
Thanks,
KathleenKathleen,
Also find out what Real Estate taxes are. If you get to a point of a signed contract you will want to see his books and his tax returns both. Is the park full or are their vacancies? Does he have signed rental agreements on all? Are all rents current? Don’t scare him off with these questions until you have a signed agreement. Also what do the utilities run? Look at the roads in the park. More than likely you are responsible for them. If you get to the point of a signed agreement talk to all tenants and see if they have any gripes or complaints. Is there any deferred maintenance on any units?
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