Rental Property Investor · Rockford, IL · Member since 2011 · 65 posts · 13 votes
Hello... In doing a lonnie deal, after you have purchased the mobile home and now you are trying to sell it.(with financing) What are some exit strategies if you can not re-sell the mobile home???
Good question. Especially due to the fact you are getting yourself lined up to in this business correctly. I have seen investors pay too much for mobile homes inside parks many times. This eagerness to pay too much for a mobile home comes down to lack of experience and an altered perception. Since you are green to MH investing it will shock you to realize what you can purchase a used mobile home in a park for, especially with terms.
The answer to your question is not about finding alternative methods to selling a mh in a park. Since most parks won't let you lease the answer comes down to knowing who your buyers are and how much they will pay for a mobile home (down and per month) like the one you will be selling. What you will also learn by running test ads: which advertising method works best to find these buyers and how many flaky buyers there are to semi-qualified sounding buyers.
What to do: Prior to making any offers on any MH run test ads online and offline to see what buyers will pay and which method of advertising the buyers in YOUR town are responding to. Once you become a LOCAL expert you can make purchase offers with relative certainty that you can make all your money back day 1 and hopefully eliminate any holding costs by having a buyer lined up prior to purchase.
If you can't sell it and make a profit then you paid to much for it. Then you are stuck with a rental. I made this mistake with one of my first deals. Paid to much in rehab got stuck with it and now it is a rental. Making money on it but I didn't start this to be a landlord.
Hopefully someone else will have some other creative solutions but I can't think of any that will still turn a profit.
Hello chris... I have not bought one yet, just trying to get as much info as possible first. I'm only looking to have 2k max in this frist deal, so we will see how it goes. Thanks for the input..:)
Good question. Especially due to the fact you are getting yourself lined up to in this business correctly. I have seen investors pay too much for mobile homes inside parks many times. This eagerness to pay too much for a mobile home comes down to lack of experience and an altered perception. Since you are green to MH investing it will shock you to realize what you can purchase a used mobile home in a park for, especially with terms.
The answer to your question is not about finding alternative methods to selling a mh in a park. Since most parks won't let you lease the answer comes down to knowing who your buyers are and how much they will pay for a mobile home (down and per month) like the one you will be selling. What you will also learn by running test ads: which advertising method works best to find these buyers and how many flaky buyers there are to semi-qualified sounding buyers.
What to do: Prior to making any offers on any MH run test ads online and offline to see what buyers will pay and which method of advertising the buyers in YOUR town are responding to. Once you become a LOCAL expert you can make purchase offers with relative certainty that you can make all your money back day 1 and hopefully eliminate any holding costs by having a buyer lined up prior to purchase.
The most important thing with Lonnie Deals is buying right.
If you buy right, in a worst-case scenario, you can turn around and wholesale it for a (small) profit. Typically, a properly done Lonnie Deal is for big profits (on smaller dollar amounts, under $25k).