All Forum Posts by: Terry Drake

I see that this has been discussed with real estate, but not much discussion about buying and flipping mobile homes and what taxes will apply. I understand the year and a day holding period for real estate, but what about flipping MH's? Will my profits be taxed at short term capital gains? (I think it's 35% or more here in FL).

Jeff, I would be curious to hear how many/what type of calls you're getting.

Have you had any showings? If so, how many?

I was getting tons of calls and probably had 10 showings (before repairs) and no one was biting, so I opted to do the work on the home cleaning and fixing it up. So the first guy to see it since it was fixed was denied by the park, and the second person to saw it today but said he was looking at a few others also. I will let you know how it goes over here.

Originally posted by Jeff And Cheray Warner:

Nick,

Because your business runs so efficient, you'll be able to jump right in and create as many notes as you want. The cool thing is with such low prices you can buy and sell FAST.

The call volume is high but the amount of potential buyers is HUGE, where as with my Wholesale gig, it is hit and miss with lots of valuable time wasted every day.

One thing is for sure, these deals are addicting and I can't wait for more.

Jeff

Addicting they are. At first my motivation to selling this deal was money (ofcourse) then it was experience, now my biggest motivation is getting rid of it because I have my next deal picked out and waiting for me. I just gotta get rid of this one so I can get to it!

Hey Jeff, did you get the MH sold? It sounded like you had a few promising leads. Do you have any pics?

Finished the repairs yesterday and showing it to two people tomorrow. One of the two has already walked through it and liked it. He wants to meet there tomorrow and 'hash out the numbers'. His reaction to the home (after repairs) was very encouraging but I won't get excited until the inks on the paper.

I will post the repair cost and some before/after pics soon.

Reid, thanks for the good advice! Do sellers often accept $50/month no payments for 6 months?

James, I hope I don't come off as a jerk but there are many threads about the subject if you search for 'buying notes' or 'selling notes'. I have not yet ventured into buying/selling notes or I would be happy to offer suggestions.

How much is the lot rent in the parks you're working in now? I'm working on a deal right now where the lot rent is 364/month and people don't seem very excited about it.

Originally posted by Marilyn A.:

Just wondering how this one turned out. Did you rent it? Sounds like you got a great buy here.

A friend of mine is renting for now ($500/month). Since he is a handy man we agreed to the lower rent and he takes care of the little things while he's there. I know it's not usually the best idea to rent to a friend but he is dependable, was in a tight spot where he was, and it was nice to have a good tenant move in right after closing.

When he leaves I will owner finance the mobile, and charge lot rent to who ever buys the unit. Probably around $150-200/month for the note and $325 for the lot rent.

That is a good question, Jim. I wonder what the current trends are too.

Marilyn, thanks for the advice! I think it's a great idea. BTW with the knowledge you have about MH's, you are leaps ahead of anyone else just starting in the business! I think you will do very well with it. Welcome to Bigger Pockets and good luck! :D

Originally posted by Cole Haynes:

Terry,

That is a great way to explain why you can't pay a certain amount. I will start using that!

Good job getting the discount.

How is your call volume?

Call volume from the signs and craig's list have been great. The soft spot around the thresh hold and the swollen pergo in the kitchen has pretty much sent everyone running. I think once there is some fresh paint on the place, pressure cleaned the roof and solid floors this place will go fairly quick.

People who looked at it and told me their not interested, I probed a little more and asked what they did/didn't like about it.

Likes: large rooms, nice lay out, new appliances

Dislike: the flooring in the kitchen/hall way