MH #3: Under Contract

November 30, 2009 · 4 comments

We put our third mobile home under contract today…

I have two partners that I’m working with on the mobile homes, and luckily one of them is putting in a good bit of time to find both sellers and buyers. He actually found five mobile home REOs this past week (all with the same bank), and was in the process of negotiating all five of them in one package deal. The bank only wanted to sell four of them at the prices we were offering, and they wanted to take the best deal (for us) off the table.

Instead of negotiating the other four as a package, he instead made a flat offer on one home, and the bank accepted. We may still decide to try to negotiate the other three (or four) MHs in the coming weeks, but for now, we have our third to work with.

It is a small home — two bedroom and one bath — that we picked up for about $500. There is back lot rent owed on the home, and my partner was able to negotiate that down to about $350. So, our total purchase investment for this home is about $850.

In terms of rehab, there are some moldy cabinets and dirty carpet…other than that, the home is in great shape. Hopefully we can get the rehab done for under $300-500, and then sell for at least $3000.

I’ll have more to say on this deal once I have a chance to see it (my two partners have seen it, I haven’t), and once I get all the numbers finalized…

4 responses to “MH #3: Under Contract”

  1. Steve says:

    That seems like a great deal! How are the other deals going? Have the purchasers made all the payments?

    What about single family acquisitions?

  2. Chris Ranney says:

    J, you could call this one either the Club house or the Dog house. Make it a man cave and recoup some of the holding costs. What’d ya think?

  3. J Scott says:

    Steve / Chris –

    Thanks for the feedback!

    The other two are going well. On #1, the buyers have been late on both their payments so far, but when I received the checks, there was a $35 late fee included, plus $2 per day they were late (as per the contract). On #2, they’ve paid the sales tax upfront (about $400), and will be paying first month’s rent and moving in this week.

    So, both of those are on track, though it’s still early…

  4. chris says:

    a great side business . i was thinking new year is coming up it would be nice to do a review over the past year. what worked and what mistakes and improvements for the coming year.
    increase your buying range? area? better deals ? ect you doing a great job

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