All Forum Posts by: Cole Haynes

Releaf,

Thanks for the detailed response! That makes a lot more sense.

I am in Tampa. Under "Market fundamentals" I am reading:

"from third quarter 2008 thru third quarter 2009" values have changed "-9%"

"Worst 1-Year Home Price Change- from 1980 thru 2009" values were "-22% (first quarter of 2009)"

Could someone help me to understand that? Is it saying that prices fell 22% in 2009? Or is it giving just the biggest drop in home prices through '80 - '09 and saying the research was done in '09?

Terry, the tax credit will be over May 1st. I am trying to get as many deals done as I can before then. As long as there is a legal contract in place before that date you have until July 1st to close. So, I am under the impression as long as I have the contract in place with the seller and with the title company I can still assign the contract to a first-time buyer for their fee between May and July 1st. I need to look into this more though so I make sure I am not wasting my time.

A lot of buyers I am working with have 3-5k in their pocket. For these deals they don't need the 700+ credit scores. The L/H deals are just like regular houses with their own private land. So there is no park qualifying, bank qualifying, actually no real qualifying in most cases.

It depends on how desperate of a situation the seller is in when I start working with them. If they can no longer make payments and are facing a short sale or foreclosure we do less qualifying with the buyer.

Now, with the credit in place I am just taking the $8k or $6,500 as my assignment fee. The way I am collecting this now is with an accountant who gets POA over my buyers 2009 tax returns, files the ammendment for their credit, and has the check mailed to his office. The check is then mailed to me. We also have the buyer sign a lot of documents saying this is OUR money and not his, etc.

Now that the credit is running out I am going to start targeting potential buyers with large down payments $10k, 20k, or more. They would in theory have a lot of cash, stable income, but can't qualify for a home loan. I will just start wholesaling the retail sub2 deals to them.

I have also been working with block homes the same exact way.

Let me know if that answers your question.

Joe,

Sorry for the delayed response! I agree that Mobile homes do not appreciate. The land that the home sits on underneath the home does, long term.

But that wasn't the point of the original post. I was talking about wholesaling deals Subject2 the mortgage in place. So I would never be taking ownership to the home. The debate over appreciating/depreciating mobiles isn't relevant.

I have considered subdividing land and selling off the additional lots or developing them into additional L/H packages. In my area I don't have a lot of L/H deals that have a lot of extra land to develop.

I personally would not buy vacant land and do that strategy. I would look for deals with a home on it and make the deal work with the existing setup and if you can get an additional lot, thats just icing on the cake. But, we are all different stages in our investing careers and it can be very profitable to develop raw land.

Best of luck

Joe,

Here in my area of Florida a "land/home package" is very common. That is where a mobile home sits on it's own piece of property just like a house. Actually, one county over from me these "L/H" deals account for about 1 in 3 properties, if I remember correctly. There are some nice doublewide homes on land for $35k+/-, listed as foreclosures. These homes will rent at $800/month +/-.

Hurricanes are have been a problem in the past around here, thankfully not for a few years. Property taxes are high, but it's all I've ever known, so I can't complain.

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!

I agree with Jon. I found that the more income I was producing the less I wanted to deal with Park managers/owners and their requirements. I live in Tampa, FL and within an hour of me there are thousands of mobile homes sitting on their own private land. I quickly got into those deals at the same upfront costs as a mobile in a park.

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

Terry,

How did this deal turn out for you?

Anthony,

I used a company called Investorpro. At Investorpro.com. It was $600 and done in 48 hours. I still contact them almost everyday and ad stuff or get info for site. They have been great with getting back to me and helping me with site.