BiggerPockets

I have been calling on ads on craig's list. The only motivated sellers that I have been able to find have run down old trailers. Definitely not "Lonnie Deals". Lonnie says that he finds homes that are no older than 20 years and need minimal work and then sells them for double what he has in. 20 years old or newer and need minimal repair?! I have not found this. I went to a mobile last night thinking that this would be the one because the seller was asking only $4,000 for a 16x80, 1986 (still too old for Lonnie) and it was "move in ready". He needs to sell by the 10th of June because he's moving to a double wide. I got there and it was a dump. I wouldn't pay more than $1,000 for and they wouldn't take less than $3,750. They called me this morning to ask what I thought of the place. I told them they were asking to much for the amount of work it needed. Then, they called back this afternoon and I missed their call. I don't think I'll call them back, though. I don't want to seem motivated and they didn't leave me a message. Everyone that I make my offers to looks at me like I'm crazy. Are there Lonnie deals out there any more? Are there other ways to find deals other than craig's list? I have also talked to park managers, left my card with them, offered referral fees, driven through parks and written down numbers from for sale signs. I've been at this for a month. Seems like I should've find something by now. Does anyone have any words of encouragement? BTW, I'm in Oklahoma City. Anyone doing deals here?

I'm not very familiar with costs to repair mobile homes. However, I've renovated a few single family homes. But, I still don't know enough to price a rehab. However, the work that I see that needed to be done is two bathrooms needed a complete remodel. They are full baths, but are small. They need bathtub surrounds, tile on the floors, mirrors, fixtures, texture/paint. Paint throughout the house and carpet throughout. Needs a thorough cleaning. And, the front porch is an eye sore. They used some time of sheet metal to construct it and then painted over it. It could use a brand new wood porch. The back porch needs to be torn down as well and a new one built. The roof and ceiling look good. The roof has a cool seal on it. (I think that's a good thing, right?) The outdoor condensing unit looks good, but the interior unit looks ancient. The sellers said it works. They said the HWT is new, but it was in a closet with a bunch of stuff in front so I never got to see it. The kitchen cabinets are really old and not very attractive, but I may be able to get by. So, after all the rehab, I think it will probably be worth $8-$9k.

I'll keep up with John Fedro's blog. Looks really good. Thanks!!

Lindsey, I have a rehab estimate template, but the costs for each item are not in there as costs can range from city to city, state to state and strategy to strategy (rehab to rent vs rehab to flip vs SFR's vs mobile homes). It is not yet available on the BP Store, but I think it will be soon. Stay tuned for updates from Josh our fearless leader on that.

Lindsey, CHEER UP!! You are already winning! You are out there playin the game and not just watching from the sidelines. Babe Ruth did not knock everyone out of the park from day one.
I would keep doin what you are doin, but I would really fine tune your approach. You need to have a strong canned presentation that includes a lot of questions that they already know the answers to. Help them see how much it is gonna cost them in holding cost with the park.
You can do it. just take lots of notes and fine tune your pitch.You may wanna try listening to tony Robbins, mastering the influence. He really goes into the psychology of the sale. Good luck!!!!! :mrgreen:

Lindsey, Lonnie's books are more of a guide then a rule book. I've bought and sold MH from 1970 to 1996 being the newest and have made money on all of them. It's not a bad idea to look at all the homes in your price range regardless of age. It will be a good learning experience no matter what and a lot of older homes have been remodeled in the past.

Lindsey T,

You are out in the trenches looking at homes and making offers. As long as you keep that up you'll be closing deals in no time. Like Rob said, "You're already winning"... you just haven't realized the profit.

When making offers to mobile home sellers it's all about building relationships. Always every time you make offers (as an investor) to mh sellers they SHOULD say NO. (my advice) This should be expected or you probably paid too high. If the sellers are asking to much thats OK; 1. you make new friends, 2. show them how you can solve their problems, 3. show them their alternatives, 4. keep in touch with them when they initially say no, 5. follow up and renegotiate (may take 2 or 3 negotiations), 6. then once the seller(s) have seen they have little other options they will call you back. This is definitely a numbers game.

If the prices are too high try offering an owner financed offer so you can come closer to the sales price in their heads. As long as it's still a WINNING deal for you too!

In my opinion don't worry so much about the age of a home as long as it's in good/decent condition. When Lonnie talks about homes 20 years or newer I believe he's referring to homes built prior to 1974 when Hud made stricter building codes for mobile homes (changing the name to manufactured homes).

BTW You made me bust out laughing (in a good why) with that last comment, "I've learned that just because a seller says that is their final price, it doesn't always mean that." Sellers Lie! I won't believe it. Lol ;)

Keep up the great work, John

P.s. Concerning repairs: Remember to look at your subject mh through the eyes of your typical mh buyer. My advice: you should not be upgrading the home, but simply correcting most of the blemishes that most Tenant-buyers will not like.

Here are a couple of photos of the outside:

Lindsey,

Please keep us informed on how you're doing with the purchase and sale of mobile homes in the OKC area. My wife and I are in Midwest City and are just getting started in the real estate investment area ourselves. We're hoping to do some wholesale deals and are also looking at pre foreclosures, REOs and mobile homes.

Mike and Lorri

Lindsey,

Looks like a good deal. I'm also working with mobile homes. I am fortunate to have found a MHP owner who wants to fill the empty lots he has. 6 in a 73 lot MHP. I bought my first MH from him 3 weeks ago. He buys the MH's at auction, sets them up in his park, totally rehabs and finds a tenant. After he has done all that, I buy the MH. The last I bought for $15,500. He paid $7300 at auction. I estimated that after buying it, moving it, setting it up, and rehabbing it and finding a tenant. He had about $13,000. At this point I am pleased with the deal. The rent is $600 a month and the lot fee is $195. He is working on another one which I will buy in a couple of weeks. I'm using a self directed IRA to fund my deals. After I get a little more experience, I will consider starting from the beginning to make a little more money. My goal is to have 6 mobile homes owned and rented by the end of the year.

I'm intrigued by the profit potential of this low entry cost RE industry. Wow, I need to read more about MH rentals. Thanks for the video Josh!