About to purchase first mobile

[PropertyQuest]

Hello All,

I have been away quite a while, but have been lurking all the same.

I am about to purchase my first mobile home. The home was owned by the parents of the person I met. The father died, and now the mom has gone away to another home. The family is just trying to sell the home to get out from under the lot rent and taxes...etc.

I have re-read over some of the posts in this specific forum, and I noticed that Jim mentioned he signs a purchase aggreement and gives $100 when he agrees to buy a home. He then will pay the rest when he does a walk-through and gets the title handed to him.

In my state, we don't have titles per say, but have Statements of Ownership and Location. From what I understand, the process to transfer the SOL (yes I am not making this up) takes about 10 business days. Am I to understand that you will not pay the whole amount until you have the title (aka SOL) in your name Jim?

Are there any other issues I should be concerned about? I have checked online to insure there are no back taxes, or liens attached to the property. I have also talked to the park managers, and they have no problem with me selling the home on terms. I am pretty sure there is no back lot rent, but I will verify tomorrow.

Any help or encouragement is greatly apprecieated.

PQ

[Burke]

I in no way want to put a damper on your plans. I am about 99% sure that the state of Texas requires a dealer's license before you sell more than one MH a year. If you plan on doing more of these in the future, you may want to check into that. I assume that you are doing this in Texas based on your location as listed. If that is an incorrect assumption, disregard and I apologize for stepping in.

Otherwise, it sounds like you may have a good deal and I hope it works out great for you. Keep us posted on your progress.

[PropertyQuest]

You are correct. In Texas you can only sell one mobile home in a 12 month period without a licence (retailer in my case). If this deal goes through, it should pay my licensing fees, and for the bond that is needed to get a license.

PQ

[ThreeRiversREI]

In my state, we don't have titles per say, but have Statements of Ownership and Location. From what I understand, the process to transfer the SOL (yes I am not making this up) takes about 10 business days. Am I to understand that you will not pay the whole amount until you have the title (aka SOL) in your name Jim?

Well, last time I bought a car, I didn't get the title until I had the financing in place & the dealer was paid.

Last time I bought a refrigerator, I didn't get the bill of sale until the store was paid.

Last time I bought a house, the deed wasn't recorded & I didn't get the keys until after closing when the seller got paid.

So, uhm, why would you pay in full (cash, financing, whatever) before you have title/ownership to what you're buying?

[PropertyQuest]

Heh, thanks for laying it out so clearly.

I was indeed thinking about this, and I called the seller earlier this morning and told her I would sign a purchase agreement with her. I will give her $100 and will pay the rest of the balance when the SOL is in my name and it is verified that all taxes, liens, and lot rent is paid in full.

PQ

[ThreeRiversREI]

Heh, thanks for laying it out so clearly.

I was indeed thinking about this, and I called the seller earlier this morning and told her I would sign a purchase agreement with her. I will give her $100 and will pay the rest of the balance when the SOL is in my name and it is verified that all taxes, liens, and lot rent is paid in full.

No problem. I don't know what the normal process is for mobile homes, in or out of TX, but for real estate in general you'd start with the purchase agreement (a contract, signed by both parties, with 'consideration' given by the buyer, your $100). That agreement would spell out the duties of both parties to complete the transaction as well as any options to stop the transaction (subject to locating financing, suitable inspection, approval of partner, seller finding a new home to move to, etc.). It would then move to escrow with the buyer paying their money, the escrow agent verifying that all the other duties had been completed (taxes paid), title insurance was obtained (verifying clear title & insuring against any unknown defects in the title), etc. Upon close of escrow, the seller gets paid and the buyer gets title.

Is there some reason this process, or something like it, isn't used for mobile homes in TX, or for your transaction in particular?

[PropertyQuest]

Is there some reason this process, or something like it, isn't used for mobile homes in TX, or for your transaction in particular?

Well, in Texas, a mobile home can be declared as Personal Property, or as Real Estate. If it is declared as real estate, then I beleive you must use some third party to handle all the escrow, title, etc, just as if it was a stick built home.

The mobile home I am attempting to purchase is designated as personal property. Therefore, there is no requirement to get a third party involved. It is completely up to the two parties in the transaction to determine how and when the money will be transfered. The only requirement by the state is that the Statement of Ownership and Location be updated with the information on the new owner. The above changes a bit if I had a retailers license, but I wont need one of those until my second deal.

One reason I am glad I do not have to use a third party is that it would incure another expense. As it stands, not including the purchase price of the home, I will have to fork over the following in order to close the deal:

$35 app fee to get approved by park
$300 deposit to park in addition to first month's lot rent
$55 Transfer of Ownership fee for new SOL
$55 Fee for quick processing of the SOL. This will get the SOL in my name in 3 business days, instead of the regular 4 to 6 weeks! (Our effecient government at work).It is all worth it however, as assuming the purchase goes thorugh I am getting a good price on the home, and the seller feels releif at getting their issue resolved as well. Win-Win for all involved.

I will post more details when everything is finalized. Don't want to jinx things....

PQ

[ThreeRiversREI]

Well, in Texas, a mobile home can be declared as Personal Property, or as Real Estate. If it is declared as real estate, then I beleive you must use some third party to handle all the escrow, title, etc, just as if it was a stick built home.

Got it! Because a mobile home is theoretically mobile, and not tied to the land, it can be treated as any other movable object, whether a car or dresser. Except that there IS ownership paperwork that has to be filed with the state.

You might still call around to a couple of title companies in your area (or whoever would normally handle a real estate escrow) to get a quote for what sounds to be a fairly simple escrow, either with or without a preliminary title search (which should tell you about any liens against the mobile home). A few minutes of your time doing the research and maybe a couple hundred $$ could be well worth the peace of mind and insurance against problems having an impartial 3rd party involved provides.

[Burke]

YIf this deal goes through, it should pay my licensing fees, and for the bond that is needed to get a license.

Good plan. I just didn't want you getting yourself into trouble.

I seem to remember that the licensing fee is something like $1000. How much is the bond going to run you? Is that $1000 licensing fee required to be renewed annually? Just curious.

[Debbie]

Good plan. I just didn't want you getting yourself into trouble.

I seem to remember that the licensing fee is something like $1000. How much is the bond going to run you? Is that $1000 licensing fee required to be renewed annually? Just curious.

There is a $1K dealer licensing in Illinois. It is possible that's where you read my post a couple of months back.

[PropertyQuest]

I seem to remember that the licensing fee is something like $1000. How much is the bond going to run you? Is that $1000 licensing fee required to be renewed annually? Just curious.


I can't remember exactly, but I think the retailer's license (which allows you to sell used mobiles and buy repos from finance companies) runs around $350 a year. I beleive it costs around $1000 a year to maintain the $50000 bond needed to do business as well.

PQ

[Jim Johnson]

Well, in Texas, a mobile home can be declared as Personal Property, or as Real Estate. If it is declared as real estate, then I believe you must use some third party to handle all the escrow, title, etc, just as if it was a stick built home.

The mobile home I am attempting to purchase is designated as personal property. Therefore, there is no requirement to get a third party involved. It is completely up to the two parties in the transaction to determine how and when the money will be transferred. The only requirement by the state is that the Statement of Ownership and Location be updated with the information on the new owner. The above changes a bit if I had a retailers license, but I wont need one of those until my second deal.

One reason I am glad I do not have to use a third party is that it would incure another expense. As it stands, not including the purchase price of the home, I will have to fork over the following in order to close the deal:

$35 app fee to get approved by park
$300 deposit to park in addition to first month's lot rent
$55 Transfer of Ownership fee for new SOL
$55 Fee for quick processing of the SOL. This will get the SOL in my name in 3 business days, instead of the regular 4 to 6 weeks! (Our effecient government at work).It is all worth it however, as assuming the purchase goes through I am getting a good price on the home, and the seller feels relief at getting their issue resolved as well. Win-Win for all involved.

I will post more details when everything is finalized. Don't want to jinx things....

PQ
First off... you running down the right road. if you need a purchase agreement- PM me with your email and I will send you one you can modify.

Now... $100 up front and the rest after you have clear title (or whatever).
DO NOT APPLY WITH THE PARK!
You are a dealer, lender, bank, flipper... you do not need to apply.
When I purchase in a park I give them my business card and that is it.
Before you buy, ask the park if the home can stay in the park.
Some parks will require upgrades tot he home, know this before you buy.
One park in Colorado requires a pitched roof and wood siding... $5,000 or so...
Do not pay a deposit... ever.
Do not let them run your credit...
Do not sign a lease.... ever... ever... ever...

tell me more about the home... year, size, beds, bath.
How large is the park, how many vacant spaces? How mane units for sale?
What are other units selling for?
Will the park give you a space rent reduction because your a dealer?
Some parks give me 1 year free to sell each home... others 90 days...
Try not to pay space rent... it kills your return...
Are you going to carry a note or sell it for cash?

geesh... so many questions...

One more... how much are you going to pay for the home?

[Debbie]

PQ,

Listen to Jim Johnson....he's the MASTER of this Mobile Home field! :praise:

Seriously!

[PropertyQuest]

tell me more about the home... year, size, beds, bath.
How large is the park, how many vacant spaces? How mane units for sale?
What are other units selling for?
Will the park give you a space rent reduction because your a dealer?
Some parks give me 1 year free to sell each home... others 90 days...
Try not to pay space rent... it kills your return...
Are you going to carry a note or sell it for cash?

geesh... so many questions...

One more... how much are you going to pay for the home?

Thank you for responding Jim, I was hoping you would before I meet with the seller.

First, I have talked with the management in this park, and they are open to the idea of me financing a mobile home to a buyer. I asked them if there was any break on lot rent, and the declined. They of course want the home to stay, and I talked to them briefly about any special requirements for homes in their park which they didn't mention any. I will get them to verify no upgrades are needed (thank you for that). I will attempt to not sign a lease, give deposit, check credit etc, but this is a corporate owned park, so I do not know how open they will be to this.

The park is what I would deem large, with probably around 400 lot spaces. It seems to be about 2/3 double wides with the rest being single wide.
I learned that the park was interested in selling homes as well, but when I went in for an apointment to talk about what they offer, it was all retail pricing. The lowest priced home they had was a 1992 3/2 single wide for $18,500. I did not see more than 10 spaces vacant in the park...probably less.

The home in question is a 1995 double 3/2 double wide. It is in pretty good condition. I will need to carpet the three bedrooms, and perhaps paint the walls. I estimate I will be able to fix this place up for less than $1000. Probably more like $600. I am purchasing the home for $6000. My goal is to sell the home for around $28,000 with a 4k down payment on a 7 year note. This will get the payment in around $400 - $450 a month. With a 4k down payment, I should be at break even in 7-8 months.

[PropertyQuest]

Jim,

I forgot to ask, why you are so adamant about not getting credit checked with the park? I can understand not wanting to sign a lease, as there must be hassles with transfering all that to the new owner.

What sort of arguments should I use for not signing or giving a credit check? If it comes down to it, I will allow them to run my credit, as I beleive this is a good deal for all involved. Have you ever allowed the credit check on yourself?

PQ

[Jim Johnson]

Jim,

I forgot to ask, why you are so adamant about not getting credit checked with the park? I can understand not wanting to sign a lease, as there must be hassles with transfering all that to the new owner.

What sort of arguments should I use for not signing or giving a credit check? If it comes down to it, I will allow them to run my credit, as I beleive this is a good deal for all involved. Have you ever allowed the credit check on yourself?

PQ

The answer to this for me is simple. I am a business, a private lender, much like greentree or Vanderbilt. I demand to be treated accordingly. If I had my credit ran for every mobile home deal I did it would be hit over 50 times a year... Be professional and expect the park to be professional also...

[Jim Johnson]

I will attempt to not sign a lease, give deposit, check credit etc, but this is a corporate owned park, so I do not know how open they will be to this.


The home in question is a 1995 double 3/2 double wide. It is in pretty good condition. I will need to carpet the three bedrooms, and perhaps paint the walls. I estimate I will be able to fix this place up for less than $1000. Probably more like $600. I am purchasing the home for $6000. My goal is to sell the home for around $28,000 with a 4k down payment on a 7 year note. This will get the payment in around $400 - $450 a month. With a 4k down payment, I should be at break even in 7-8 months.
First... I have never signed a lease... never.

Now... the home sounds good... To every P&I payment I escrow about $30 per month for taxes and charge a $15 per month 'loan service fee'. If I service the note it is my money, if I broker out the service of the note it is what the person makes every month for watching after the books and sending out statements. You also need to figure out how you will handle taxes. Here I have the owner pay them every year... but you will need to figure that one out for Texas.

Now... how are you going to market the home? Most buyers stop at the office and get a list of homes for sale in the park. Some drive the park looking for signs. What is your plan?

[PropertyQuest]

Ok, I am back. I have finally gotten the seller to sign all the necessary paperwork, and am turning it into the state tomorrow to get the home in my name.

I need to stop by the park tomorrow as well to talk to them about what they expect from me as I will try to sell as quickly as posible.

I was planning on marketing the home by doing the following (all this will be done when the SOL is in my name)

Put big sign in the window that says for sale, and mentions that flexible financing is available.
Put Add in Craigslist for my area that talks about the home, the park amenities, and espcially mentions that I have flexible financing available
Will put adds in the two "thrifty nickel" type papers that are in the area. Again will mention flexible financing.
I will also talk to the park manager about adding my home to their list of homes for sale in the park, but I am not sure how agreeable they are to this as I would technically be competing against their park owned homes. Since I will be paying lot rent, not sure they are as intersted in moving mine as they are in moving theirs.Other suggestions?

PQ

[Debbie]

That almost sounds like you haven't been in sync with the lot owner/manager.

I sincerely hope all goes well. But, be prepared to spend extra money to move the mh if the lot owner/manager is displeased with you taking actions without keeping them in the loop.

BTW--CONGRATS on being the owner of your first MH!

[PropertyQuest]

Well, its all a done deal now.

The SOL is in my name, and I have the bill of sale from our transaction. I went to the park office and signed a lease and gave deposit for the space. Water is in my name, and I will be calling electricity people on Monday (although elec is still on for some reason). They would not let me in without signing the lease...

I am going to make a big sign to put in the window, and my wife and I are heading over there tomorrow to decide exactly what to do. I think I am only going to need to put carpet in the three bedrooms and the master bath. I was there tonight changing the locks, and I am just amazed at how good of shape this home is. I talked with the neighbors for a few minutes and they mentioned that the older gentleman that lived there before really took care of the place.

I am waffling on whether to paint the inside of the home. Right now, it is that wall paper (is it vynil?) covered wall material, and most of it is in really good shape. One room has about 50 picture hanging nails in it, so I am thinking maybe I need to paint in there to cover those. I was also considering painting the cealing, but it really doesn't look that bad, and there are no leaks at all.

The flooring in the living room and dining room are the idividual linoleum tiles, and a few of them seem to just be raising around the edges. I don't know if I should replace them or not. Maybe I should send in a spy to look at a similar DW that is being sold by the park to get an idea.

I can't beleive how well things have gone so far. Hopefully things continue to do so, and I find a good buyer with a nice down payment and get this thing sold quickly.

BTW, I called there today and they said the water should be turned on, however when I went there tonight it wasn't. Is there some main valve somewhere that must be turned on under the house?

PQ

[PropertyQuest]

So it has been about three weeks since I finalized the purchase of the mobile home.

In that time I have painted the 3 bedrooms, and had carpet put in them as well. I bought the parts needed to replace the master bathroom toilet bowl, and some items needed to fix the hot/cold faucets in both the master shower, and guest tub. I was planning on fixing these things myself.

As I was walking out of the house on Saturday, I noticed some water near the front door. On further inspection, there was a nice puddle that had formed, and I needed to rip up about 10 total tiles. I was pretty bummed, and had visions of pouring more money in to fix it, but I called a handyman in to see what he could find. All told he is going to charge me 200 dollars to fix the leak, fix the tub and shower, and install the toilet. He will be there tomorrow to do it.

One lesson learned, is that if I buy another one, I am going to bid out everything to a Handyman type person. I have kids, and a wife that works nights, in addition to my full time job, and finding time to get out there and do stuff is very difficult. I hope this guy works out, because he seems knowledgable, and his prices are good.

The last thing I will need to do is put some caulking in, and do a final clean up. I have already had some calls based on my sign in the window, and I will be adding the mobile home to craigslist and two local "thrifty" papers tomorrow.

I have looked at some numbers and have decided to sell the home for $30000. I will take at the least a 2k down payment, but in order to try and get more, I will be telling all buyers that I will match half their down payment up to $5000 (as in their 10k to my 5k). I will also sell the home for 23k cash if anyone actually has that, or can get financing. Assuming I sell this in a timely manner (2-4 weeks) I will have about 7500 total in the place.

PQ

[PropertyQuest]

Not sure if anyone is still viewing this, but I will keep updating until I sell.

I have finally finished fixing and cleaning up the home. Ok I actually still have to put on a new showerhead, toilet cover/seat, and get one vinyl tile to stay down, but close enough.

I last wrote about finding a leak as I was walking out. I called a handyman and he said he would fix that, and some other stuff I needed for $200. Well, I went to meet him the next day and he never showed. So, I ended up fixing the leak, replacing the toilet, and fix the tub and shower myself. Of course as I was trying fix the hot side of the tub, I noticed that the end of the copper fitting was chipped, and therefore I could never get the thing to seal (no wonder I could never turn the handle hard enough to get the flow to stop). I got that replaced by a plumber, and all told it cost me about $160 and 4 or so hours of my time. Lesson learned? Handymen are flaky.

Anyway, so I totalled up all my bills, and I currently have about $7600 in the place total. I estimated $1000 to fix it up, and it ended up costing about $1100. Off by 10%, so not too bad. I have further decided to sell it for $31000 on financing, or for $25000 in cash.

I have had a sign in the window since I bought the place, and have recieved 5 or so calls from that. I also placed an add yesterday and have recieved a few leads from that as well.

So far it looks like I am getting people saying they can put 3k down and they are asking what the monthly payment will be. I then ask them what can they afford to pay a month. I am flexible, and I don't want to tell them something that is lower then they are actually willing to pay. I figure the more they can pay a month, the better.

Jim, or anyone else that might be doing these deals, what do you put in your sale aggreement? I have DOW, so I have Lonnie's sample, but what other clauses do you add? Right off hand, I think I would want to put language in on:
1) No moving the home until it is paid in full
2) Insurance must be kept and payor in my name
3) Lot rent must be pad to park in full each month or I reposes

Any other clauses? Any sample aggrements?

Also, any tips on getting your buyers to give you the highest down payment, and getting the highest monthly payment?

Thanks!

PQ

[Jim Johnson]

Not sure if anyone is still viewing this, but I will keep updating until I sell.

I have finally finished fixing and cleaning up the home. Ok I actually still have to put on a new showerhead, toilet cover/seat, and get one vinyl tile to stay down, but close enough.

I last wrote about finding a leak as I was walking out. I called a handyman and he said he would fix that, and some other stuff I needed for $200. Well, I went to meet him the next day and he never showed. So, I ended up fixing the leak, replacing the toilet, and fix the tub and shower myself. Of course as I was trying fix the hot side of the tub, I noticed that the end of the copper fitting was chipped, and therefore I could never get the thing to seal (no wonder I could never turn the handle hard enough to get the flow to stop). I got that replaced by a plumber, and all told it cost me about $160 and 4 or so hours of my time. Lesson learned? Handymen are flaky.

Anyway, so I totalled up all my bills, and I currently have about $7600 in the place total. I estimated $1000 to fix it up, and it ended up costing about $1100. Off by 10%, so not too bad. I have further decided to sell it for $31000 on financing, or for $25000 in cash.

I have had a sign in the window since I bought the place, and have recieved 5 or so calls from that. I also placed an add yesterday and have recieved a few leads from that as well.

So far it looks like I am getting people saying they can put 3k down and they are asking what the monthly payment will be. I then ask them what can they afford to pay a month. I am flexible, and I don't want to tell them something that is lower then they are actually willing to pay. I figure the more they can pay a month, the better.

Jim, or anyone else that might be doing these deals, what do you put in your sale aggreement? I have DOW, so I have Lonnie's sample, but what other clauses do you add? Right off hand, I think I would want to put language in on:
1) No moving the home until it is paid in full
2) Insurance must be kept and payor in my name
3) Lot rent must be pad to park in full each month or I reposes

Any other clauses? Any sample aggrements?

Also, any tips on getting your buyers to give you the highest down payment, and getting the highest monthly payment?

Thanks!

PQ

I am watching and am sending you a email.

[PropertyQuest]

My buyer came over today and signed the paperwork tom complete the transaction.

First, I just want to give a big thank you to all of those that have replied to this thread and participated on these forums. Your participation is what makes this forum what it is...a great place to exchange information, share ideas, and help each other on the path of financial independence.

I also want to single out and express my gratitude and thanks to Jim Johnson. He helped me through the finishing steps for selling this home, and his previous threads on buying and selling homes where a great motivator to see what this was all about. He also was kind enough to answer a few emails I sent to him with various questions, and was even willing to go farther if I needed any help. I truly appreciate what he has done and brings to this on-line community. It really says something about a person when they have such success and are willing to share their success and knowledge with others.

Jim, thank you.

I also need to thank Lonnie Scruggs for writing the book "Deal on Wheels".

Here are my final numbers. They are not correct to the penny, but a very close to the actual numbers.

Home Purchased on 1/15/2007
Purchase Price: $6000
Cost to fix and prep home for sale: $1181
Fees paid (lot rent, electricity, water, buyer agent cost..etc): $2034
Total: $9215

Home Sold on 3/12/2007
Down Payment of Buyer: $5000
Fee paid to prepare docs: $200
Total: $5200

Total money left in Home when note created: $4015

Total Financed: $23500
Monthly Payment: $330.85
Term of Note: 9 years

So it took me 2 months, and 4k left in the deal of my own money to create a note that will cashflow $3.9k a year for 9 years. Total profit for the deal assuming my buyer pays for the full 9 years is roughly $31k. I figure I have put roughly 75 hrs into this deal taking into account the time I spent to buy it, fix it, show it, sell it. That is not a bad hourly wage.

Please note that this was a first deal. I wanted to see what was actually possible in used mobile homes. I have to say that the outcome truly exceeded my expectations. Not only have I given myself and my family a 4k raise per year, I have also helped out a family that needed to get out from under the burden of their parent's home. I have also helped my buyer that need to find a safe and affordable place to live. I know what is meant now by "win-win".

To any of you out there that are interested in learning more about these types of deals, I recommend two starting places:
1) Read every post and thread by Jim Johnson
2) Go and purchase a copy of "Deals on Wheels" by Lonnie Scruggs.

I will definately be looking to buy another mobile home and do this again. I firmly beleive used mobile homes are an excellent strategy for building cash flow with low ammounts of starting capital.

What sort of intersted would I be making on my 4k if it was just sitting in my interest bearing checking account as it was before? What if it was in a mutual fund? How much is that 4k making in interest now that it has been used to generate this note? I think that is what is meant by the statement "making your money work for you".

Please feel free to ask any questions, and thank you again to everyone that participated in this thread. I hope it will motivate someone else to try this business. I know that reading the other threads on this board motivated me.

PQ

[Jim FL]

PQ,
Congrats!
Nice to hear about the whole deal, from start to finish.

Seems like a pretty nice return on your money coming in there.
According to my "lonnie-calculator", it's "good'nuff".

Thanks for sharing the deal with all of us here, certainly is educational and an inspiration.

Take care,
Jim FL

[Debbie]

PQ,

I've been watching too....

Your comments about Jim Johnson---he helped answer questions when we considered a specific MH park and in general of MH parks. We found that the specific park wasn't quite a good deal because of the revised local zonings for next buyer. We have Jim to thank for!

I've said it before and I'll say it again, for various reasons, I wanna be like Jim when I grow up! :SM022:

[Burke]

My buyer came over today and signed the paperwork tom complete the transaction.

A big CONGRATULATIONS! Keep it up!

[Jim Johnson]

My buyer came over today and signed the paperwork tom complete the transaction.

First, I just want to give a big thank you to all of those that have replied to this thread and participated on these forums. Your participation is what makes this forum what it is...a great place to exchange information, share ideas, and help each other on the path of financial independence.

I also want to single out and express my gratitude and thanks to Jim Johnson. He helped me through the finishing steps for selling this home, and his previous threads on buying and selling homes where a great motivator to see what this was all about. He also was kind enough to answer a few emails I sent to him with various questions, and was even willing to go farther if I needed any help. I truly appreciate what he has done and brings to this on-line community. It really says something about a person when they have such success and are willing to share their success and knowledge with others.

Jim, thank you.

I also need to thank Lonnie Scruggs for writing the book "Deal on Wheels".

Here are my final numbers. They are not correct to the penny, but a very close to the actual numbers.

Home Purchased on 1/15/2007
Purchase Price: $6000
Cost to fix and prep home for sale: $1181
Fees paid (lot rent, electricity, water, buyer agent cost..etc): $2034
Total: $9215

Home Sold on 3/12/2007
Down Payment of Buyer: $5000
Fee paid to prepare docs: $200
Total: $5200

Total money left in Home when note created: $4015

Total Financed: $23500
Monthly Payment: $330.85
Term of Note: 9 years

So it took me 2 months, and 4k left in the deal of my own money to create a note that will cashflow $3.9k a year for 9 years. Total profit for the deal assuming my buyer pays for the full 9 years is roughly $31k. I figure I have put roughly 75 hrs into this deal taking into account the time I spent to buy it, fix it, show it, sell it. That is not a bad hourly wage.

Please note that this was a first deal. I wanted to see what was actually possible in used mobile homes. I have to say that the outcome truly exceeded my expectations. Not only have I given myself and my family a 4k raise per year, I have also helped out a family that needed to get out from under the burden of their parent's home. I have also helped my buyer that need to find a safe and affordable place to live. I know what is meant now by "win-win".

To any of you out there that are interested in learning more about these types of deals, I recommend two starting places:
1) Read every post and thread by Jim Johnson
2) Go and purchase a copy of "Deals on Wheels" by Lonnie Scruggs.

I will definately be looking to buy another mobile home and do this again. I firmly beleive used mobile homes are an excellent strategy for building cash flow with low ammounts of starting capital.

What sort of intersted would I be making on my 4k if it was just sitting in my interest bearing checking account as it was before? What if it was in a mutual fund? How much is that 4k making in interest now that it has been used to generate this note? I think that is what is meant by the statement "making your money work for you".

Please feel free to ask any questions, and thank you again to everyone that participated in this thread. I hope it will motivate someone else to try this business. I know that reading the other threads on this board motivated me.

PQ
It warms my heart to see another addicted mobile home investor.

Now for the next step... Go to http://www.realestatetaxlaw.com/products.php
and buy his 'kiss' guide to book keeping. Once you have it- send me a email and I will forward to you another goodie or two that will only make sense once you have his program.

I recommend this program because John Hyre is a mobile home investor, his book addresses mobile home investing and carrying notes for mobile homes. I have met John, had breakfast with him here in Denver and his stuff for mobile home people is great.

[Jim Johnson]

PQ,

I've been watching too....

Your comments about Jim Johnson---he helped answer questions when we considered a specific MH park and in general of MH parks. We found that the specific park wasn't quite a good deal because of the revised local zonings for next buyer. We have Jim to thank for!

I've said it before and I'll say it again, for various reasons, I wanna be like Jim when I grow up! :SM022:

Thanks for the kind words Deb....

[Dan Auito]

Awesome from all angles. This is what these forums are ALL about. Creating success for those who want to make it happen. Congrats on gitten it done!
JJ you're a jewel buddy. All the love brother.

[Humvy]

You are correct. In Texas you can only sell one mobile home in a 12 month period without a licence (retailer in my case). If this deal goes through, it should pay my licensing fees, and for the bond that is needed to get a license.

PQ

when you mean a license...just getting your real estate license?


iam new to this


thanks

[Debbie]

when you mean a license...just getting your real estate license?


iam new to this


thanks

No, it's Dealer's License

BTW, Welcome to the Magic Bullets Fambly! :SM086: