First Mobile Deal in the works!

First Mobile Deal in the works!

Real Estate Investor · North Central Arkansas · Member since 2009 · 509 posts · 178 votes

So I took a look at an old Mobile home that I had been talking with a seller about, but before I went out there I called the office and spoke with the park manager to see what their criteria was (thanks Cole). The manager was very cool and had no problem with my business plan so I told her I will stop into the office and introduce myself when I get out there today.

I drove through the park and noticed it was very clean and full, both good signs. The seller back peddled and wanted $2000.00 but I held firm on my offer for $1500 and requested that she leave the fridge and the A/C unit. She said she had to think about it and that she would get back to me...I was disappointed but I was not going to budge on my offer. I got in the car, did a lap through the rest of the park and stopped in the office to introduce myself to the manager. While talking with her, she told me that they had a Mobile that they just acquired and would like to sell for $1500.00, I told her I was interested and would come back (the office was actually closed so I did not want to keep her).

Just as I was leaving the office, my phone rang and the seller told me she would accept my offer of $1500...with that news I drove around the corner, go the contract signed and left. I put this deal under contract for $0.00 with 100% of the funds held in escrow until the home is vacant and inspected. I know I don't have to open escrow for a mobile but I felt it was a good step to secure the deal and let the seller feel comfortable about signing a contract with no deposit.

Thank you all for your help in answering my questions as well as posting all the solid info for me to study up on. Without you guys I would not have even considered the Mobile Home business.

Jeff

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Real Estate Investor · Tampa, FL · Member since 2009 · 73 posts · 27 votes
16y

Jeff,

Do you use bandit signs for your homes when selling them? They work GREAT in my area! I used them a lot when I was buying and selling L/H deals. The problem was they were around $6.50 a piece at Lowes for a blank sign with a stake. Currently I buy signs in bulk but back when marketing dough was tight those signs killed me!!

I eventually found a cheaper way( I still do this when a rental goes empty or I only need a few signs). I would go to Wal-Mart and in the school supply section they sell blank "foamboard." In my area they have it in all different colors. I now buy the bright yellow foamboard for about $2.66 a board, It is a rectangular shape. If you buy 10 boards you will spend about $27. Then go over to Lowes or Home Depot and get Surveyor stakes. I think they cost about $5 for 20. If you take a box cutter you can cut the foamboard in half and make 20 signs for $26. This is the cheapest way I have found to make homemade bandit signs and the black marker on yellow board really pops. If you put all 20 out you should get flooded with calls! If I am selling a property at $250/month and the lot rent is $300/month and I want $1000 down I will have the sign read as follows:

3/2 Singlewide For Sale!!!
WILL FINANCE! Family Park
$550/month!! Just $1k Down
8 1 3 - X X X - X X X X

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  • Real Estate Investor · Member since 2009 · 260 posts · 119 votes
    16y

    Jeff, I have found nothing but lookie loos on craigs list. My local shopper has generated as many calls as craigs list (avg 5 or 6/day) but seem to be more motivated. The other day I got the idea to put my bandit signs in front of the walmart super center. I figure they always have tons of traffic! A guy called this morning from the walmart sign bought it today for 4k (owner financed)!

    You're right about on the job training, I learned that central AC/soft spots are more important then I thought and people don't like soft spots, whatever the reason!

    Cole, Thanks for the cheap bandit sign advice! I was trying to figure out a cheaper way out than $5/sign. How does the foam board hold up to the wind/rain?

  • Real Estate Investor · Tampa, FL · Member since 2009 · 73 posts · 27 votes
    16y

    Terry,

    Nice to hear you got your place sold! Was that the 2/1?

    The foamboard holds up very well in the rain and wind. My signs seem to get pulled, on average, around 5-7 days. They hold up very well for atleast that long. I feel you on the $5 signs, it really starts to add up! Especially when your business is $1500 homes!

  • Real Estate Investor · North Central Arkansas · Member since 2009 · 509 posts · 178 votes
    16y

    Great advice guys. Terry, Glad to hear your deal is closed, I'll have to put some signs out at the WalMart down the road from there. I have not used Bandit signs on this home.

    This home was a lesson for me and a good intro into Mobiles. I had assumed too much, one thing being age of the home (i thought it didn't matter) and another was curb appeal. I honestly didn't think the curb appeal for a home that cost $4-5k made any difference....boy was I wrong. People are pretty picky and are looking for a MUCH nicer home then I have to offer at the moment. I assumed (never a good starting point) that none of that would matter because of the price and the terms I am offering.

    Long story short, I have a new cash buyer that I'm waiting to see if she gets approved. In the mean time I think I'll put a sign at the WalMart and see if I can start a bidding war =).

    Jeff

  • Real Estate Investor · Member since 2009 · 260 posts · 119 votes
    16y

    Do you have pictures we can see?

  • Real Estate Investor · Member since 2009 · 260 posts · 119 votes
    16y

    Jeff, we're you able to back out of the contract or are you stuck with it until you sell it? I will tell you that almost all the traffic I received on craig's list were tire kickers! I didn't have many (if any) quality leads from CL but once I advertised in the shopper and put up the bandit signs I was getting 5-6 calls a day of motivated buyers!

    You might also try some different incentives such as no down payment, or no payments until the next month. Honestly, even if you don't make as much as you wanted to and can walk away with what you've learned it would be worth it! Just get rid of it! :D

  • Real Estate Investor · North Central Arkansas · Member since 2009 · 509 posts · 178 votes
    16y
    Originally posted by Terry Drake:
    Jeff, we're you able to back out of the contract or are you stuck with it until you sell it? I will tell you that almost all the traffic I received on craig's list were tire kickers! I didn't have many (if any) quality leads from CL but once I advertised in the shopper and put up the bandit signs I was getting 5-6 calls a day of motivated buyers!

    You might also try some different incentives such as no down payment, or no payments until the next month. Honestly, even if you don't make as much as you wanted to and can walk away with what you've learned it would be worth it! Just get rid of it! :D

    Terry,

    I actually close this deal tomorrow. I agree about the lesson learned, you can't put a price tag on that...the cool thing is I will still walk away with $845.00 profit. I can't remember making money on something with a valuable lesson attached....usually those are the deals you loose your butt on...Praise the Lord for that.

    The Manager, who was ok with me buying and selling this home initially became a problem and started telling my buyers that the home was already sold, when it was NOT sold. She had approved a lady that I sent for an application, and because she liked the lady she wanted me to sell to her...talk about DRAMA.

    Long story short, the neighbor that lives 2 doors down is who I have been talking with about buying the home. This lady is beyond rude and I had to stop taking her calls and locate the phone number of the lady that will actually be moving in and paying me. The buyer (the one the manager wanted to move in) is an elderly lady that I'm selling too for $2500.00 cash. She is actually very nice and I agreed to move forward with the deal as long as the crackhead from 2 doors down stays out of it.

    I can honestly say that after 12 years of business and 1000's of transactions (non REI) I have NEVER encountered a person as angry at the world as this neighbor lady. Talking with her is like negotiating with a spoiled 2 year old in need of a nap, maybe even worse then that. Oh well, that's life.

    Sorry for the rambling, I'll post more details and pictures soon.

    Jeff

  • Real Estate Investor · Member since 2009 · 260 posts · 119 votes
    16y

    I know you will feel a big sense of 'whew.. glad that one is over with!'. Even better is you are walking with cash and can roll it into the next one.

    Nice job on this deal!

  • Real Estate Investor · North Central Arkansas · Member since 2009 · 509 posts · 178 votes
    16y
    Originally posted by Terry Drake:
    I know you will feel a big sense of 'whew.. glad that one is over with!'. Even better is you are walking with cash and can roll it into the next one.

    Nice job on this deal!

    I hear that.

    The lesson for everyone reading that has not done one of these deals is to see first hand that you CAN jump into a deal, learn on the job and get paid for that lesson. Prior to this, I had not even walked into a Mobile home and had not read Lonnie's or any other book on the subject.

    Since this deal, I have made offers, walked through several homes and through several parks, read Lonnie's book (available here on BP btw :wink: ) , etc. My main thing with jumping on this was to get it done rather then be in "study" mode for eternity. You gotta get out and buy something if you really want to learn.

    All in all, it's been fun learning and I can't wait for the next deal....but before that I think I need a couple days off catching Salmon and Steelhead on the coast :D

    Jeff

  • Investor · Broomfield, CO · Member since 2010 · 187 posts · 54 votes
    16y
    Originally posted by Dave Grosse:
    has anyone bought and read john fedro's book? and is deals on wheels the BEST place to start or is it outdated?

    Dave

    Yea, I purchased his e-book. Contact me via PM for my opinion.

  • Investor · Broomfield, CO · Member since 2010 · 187 posts · 54 votes
    16y
    Originally posted by Cole Haynes:

    3/2 Singlewide For Sale!!!
    WILL FINANCE! Family Park
    $550/month!! Just $1k Down
    8 1 3 - X X X - X X X X

    My signs read:

    MOBILE HOME FOR SALE!
    3 BED / 2 BATH
    $350/MONTH!
    SMALL PAYMENTS!
    LOW DOWN!
    OWNER FINANCING!
    1-888-XXX-XXXX

  • Real Estate Investor · North Central Arkansas · Member since 2009 · 509 posts · 178 votes
    16y

    DEAL DONE, $$ IN THE BANK!! PRAISE THE LORD!

    I closed this deal yesterday morning for $2500.00. I gotta run right now but I'll post an update later. Thank you all for your help and support.

    Jeff

  • Member since 2009 · 61 posts · 9 votes
    16y
    Originally posted by Jeff And Cheray Warner:
    DEAL DONE, $$ IN THE BANK!! PRAISE THE LORD!

    I closed this deal yesterday morning for $2500.00. I gotta run right now but I'll post an update later. Thank you all for your help and support.

    Jeff

    Woooooooo Hooo!! Luck of the Irish!

  • Real Estate Broker · Orlando, FL · Member since 2008 · 181 posts · 66 votes
    16y

    I'm buying actual bandit signs at a local place for $ 0.75 each. and the stakes are 0.25 ea. I believe. They have them in every color, so I go with yellow, blue , whatever I think will stand out the most.

  • Real Estate Investor · Sherman oaks, CA · Member since 2010 · 52 posts · 12 votes
    16y

    Congrats Jeff! I've been reading,reading,reading and I'm about to dive in...it's great to hear a positive experience like yours...it gives us all confidence...Thanks.

    Reid, I sent you a pm and tried to check out your web-page but it will not load..is it just down for maintenance?

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