All Forum Posts by: Scott C.

Hey Edwin, Bill gives great advice on here. Most likely the REIA will bring in different speakers each month who speak about relevant subjects to investing, plus there's usually networking before and after the event. I would talk to as many people there as you can, and then be consistent in your attendance if you decide to continue your career in RE. You didn't mention what part of investing you're most interested in, but wholesaling is probably the best as you're getting your feet wet with REI (least money into it).

Like Bill said, you'll learn a lot by reading your state's RE agent textbook which will teach you about RE terms in general but you don't need to know EVERYTHING in it at first. 75% of agent textbook material is stuff that isn't necessarily applied on a daily basis, but it's good to know down the road. 2nd book to read: FLIP: How to find, fix, and sell houses for a profit by Rick Villani (best book on Flipping houses I've come across) and 3rd, The Millionaire RE Investor by Gary Keller. You need to read the last two books to get a good base on the investing mindset you will need whether you're flipping houses, land lording or wholesaling. 

Personally, I wouldn't spend too much money on anybody's coaching programs yet in your career. Read and reread those books until you know what your talking about, then your next step is just networking with people in your REIA. Learn who Invests full time in your REIA and offer to help them with whatever they need help with. I've licked the back of lots of envelops for Direct Mailer's, moved staging furniture, etc whatever the full time investor's needed help with, and it'll pay off eventually. That buys you the opportunity to pick their brain while you're helping them, which is priceless starting out. And be consistent in everything you do, whether it's showing up at REIA meetings, your marketing plan, etc. Good Luck, this is a great place to find info!

Yes the quote was for all new A-coil, heat pump and condensor. I believe the quality of mobile home HVAC are not the same as SFR so thats why it is cheaper. The walls inside of the home were trashed, but the whole inside was repairable for about 1500 in materials. The lot rent was 250/mo, putting payments for the new buyer at 600/mo total. I should able to sell all day long at the terms i mentioned above so my holding costs wouldn't be more than 2 months max, so I guess the real question I was trying to get at is whether lengthening the terms of the note to say 6 yrs to get a higher sales price outweighs the increased risk of default by a mobile home buyer. I wouldve had about 8k in the deal including EVERYTHING (repairs,utilities, holding time, taxes, transportation costs, contingency etc) but i felt putting in 8k and selling for 12.5k (350/mo @16%, 48 mos) wasn't a wonderful return. 12.5k sales price was with repaired walls, new HVAC system, new paint, but not replacing flooring and several soft spots in subfloor. I might have tried to strengthen soft spots from underneath, I don't know how difficult this is in a mobile home. I didn't want to put more than 8k in it cause I can find other properties in better condition for that, which are also closer to me.

I recently looked at a 1996 singlewide MH and found out from the neighbor the HVAC unit didn't work. I deliberated too long about what to do about the problem and the unit sold before I made a decision so now I have some questions about how you all would go about the situation.

The asking price was 5k. Most of the people in the park were paying about 350/mo for just the house so at 16% int and 48 mos gives a price of ~12,500. My HVAC quote was about 3k for new A coil/heat pump/condenser installed. I would've had about 7-8k into this house if I had bought it and put in new HVAC so my question is would you have: 1. put the new HVAC system in and increase the # of years of the note for a higher price 2. put window units in and charged around 12.5k or 3. not put any money in and just sold it as-is for a cheaper price? Also, what percentage do you require as a down payment? Is it reasonable to expect to get atleast 5k down from a buyer if I offer financing?

I'm curious how different people analyze and budget repairs to HVAC, electrical and plumbing systems in bank owned homes where the utilities are turned off? I went through a bank owned home recently and I noticed the thermostat was set all the way on 90 so that was a good tip off that the system needed repair. What are some other clues you all have found that indicate problems when the utilities are turned off?

I'm trying to do my first Lonnie deal and I want to make sure I completely understand how the insurance process would work on a claim. I would be named as the beneficiary of my buyers policy.

From the insurance payout, I assume I would keep the difference between the balance owed on the home and the buyer's purchase price (plus cost of disposal of home if total loss) and the buyers would get anything left after that?

What general ballpark does it cost to have a lot cleaned up if the home is destroyed in the event of a hurricane or fire? 2k?

Hey Lee, I've never bought any MHPs but when i analyzed the numbers I don't like the numbers for the property this is what I came up with.

Assuming all the lots are on monthly leases which you could raise rents immedietely:

Gross Income: 7 x 225/mo - 10% vacancy = $1417/mo
Stated Operating Expenses: $702/mo
Commercial loan (119k) 20% down (24k) 20 yr note at 7% : 738/mo

Negative cash flow of 23 dollars a month.

If all 3 acres are zoned for mobile homes you could develop mobile home sites if you have the capital to put utilities in, pave streets and put homes on each site. This is where it could be a good deal down the road if you have lots of disposable capital though.

What rates are yall using in North Carolina when you sell Mobile homes (Lonnie deals)?I'm trying to understand the NC general statutes regarding setting Mobile Home interest rates. I think I understand, but my interpretation is the highest rate i could set based on GS 24-1.1(c) is 6% higher than the 6 month T-bill. Currently that would mean I could charge about 6% interest right now. Kinda seems low for mobile home investing. Curious what everyone else is charging in NC.

I'm considering buying a used mobile home and offering seller financing (classic Lonnie deal). What credit score do y'all look for when qualifying potential buyers? Obviously a stable job history is important too, but what else do you consider and where do you draw the line when evaluating potential buyers?

Stella I think the best books on Real Estate investing are The Milionaire Real Estate Investor by Gary Keller. He also has a book called FLIP which focuses on flipping houses. Read these, they are very cheap and provide a pretty solid foundation on real estate investing without alot of hype. Hope this helps!

Thanks for the response Karen. NC doesn't require any verifiable experience. I guess I was being a little modest when I said I don't have construction experience. I have helped build 7 houses so far with Habitat for Humanity for what that counts.
I would be getting the GC license to demonstrate my knowledge of construction processes, building codes and general knowledge of the construction industry, definently not to give investor's the impression I have years of experience in construction. I think being licensed would help show I'm capable of running the job... I know HML's are typically loaning 50-70% ARV, what about Private Lenders?