(Note: I've received many questions from people about mobile home and/or real estate investing. From time to time, I will post the ones I find interesting/relevant. If you have a question, feel free to send it in. Thanks!)
Q: Do you know of any lenders who lend on used mobile homes? If so, do you know their criteria and/or qualifications?
A: In this economy, it's really hard to find lenders who lend on used mobile homes. There are some that used to lend but are not in the business of lending anymore with used mobile homes.
Most of the lenders who are in the mobile home business today usually lend on new homes. These are the ones who tend to work with the big mobile home dealers - their credit score requirements are quite high, require higher down payments and in most cases interest rates in the double digits from what I've seen and heard.
If you're looking for a lender for used mobile homes, other options are private money and/or hard money depending on what your needs are. Otherwise, having cash in this economy is the best way to go unless you try to buy with seller financing.
Happy investing!
Showing posts with label mailbag. Show all posts
Showing posts with label mailbag. Show all posts
Thursday, February 25, 2010
Thursday, February 18, 2010
Q&A: Mailbag
(Note: I've received many questions from people about mobile home and/or real estate investing. From time to time, I will post the ones I find interesting/relevant. If you have a question, feel free to send it in. Thanks!)
Q: I am really interested in learning about mobile home investing. But, I hear a lot of people saying "Lonnie deals" just do not work because you end up putting too much money into these cheap homes and end up taking back the home over and over again. Do "Lonnie deals" really work?
A: In my opinion, "Lonnie deals" work but not for everyone. Anyone who has been in real estate for awhile has heard the following saying, "You just can't make money in real estate." The people who have said this are people who have not had real estate work for them. On the other hand, there are others who have really been successful in real estate. So, you see there are two sides of the coin.
Honestly, it all boils down to personality and your style. In my own personal experience, being a landlord and dealing with renters just did not work for me. On the other hand, "Lonnie deals" and dealing with homeowners has worked for me. When I go out and look at mobile homes, I ask myself two questions:
1) Would I live in this home?
2) Would I live in this neighborhood?
If the answer to both of these questions is "yes," then I pursue it. On the other hand, if the answer to these questions is "no" then I do not pursue it. When I go into a deal, I look at it first as a homeowner (who I deal with) and then as an investor - not the other way around.
Believe me, I've learned this lesson through experience. I got into a bad deal once where I looked at the home solely as an investor - bad idea. Why? In any business, I believe you have to have a product and/or service that you believe in and that you can stand behind. I don't buy cheap homes in bad neighborhoods - it's just not my style. The only reason I'd possibly look into buying a home in that kind of neighborhood is if I would move it. Otherwise, I just won't go into the deal.
So, you see - "Lonnie deals" work but not for everyone. Here is an article titled "Why Lonnie Deals Don't Work For Me" just to get another perspective. Now, this article sparked much controversy and debate among mobile home investors. Some even got really upset. However, notice the title. It does not say "Why Lonnie Deals Don't Work," it says "Why Lonnie Deals Don't Work For Me." Big difference. In the end, it will be your experience and your experience alone that will determine whether something will work for you.
Happy investing!
p.s. If you would like to learn why "Lonnie deals" work for me, check out this article. Thanks for reading!
Q: I am really interested in learning about mobile home investing. But, I hear a lot of people saying "Lonnie deals" just do not work because you end up putting too much money into these cheap homes and end up taking back the home over and over again. Do "Lonnie deals" really work?
A: In my opinion, "Lonnie deals" work but not for everyone. Anyone who has been in real estate for awhile has heard the following saying, "You just can't make money in real estate." The people who have said this are people who have not had real estate work for them. On the other hand, there are others who have really been successful in real estate. So, you see there are two sides of the coin.
Honestly, it all boils down to personality and your style. In my own personal experience, being a landlord and dealing with renters just did not work for me. On the other hand, "Lonnie deals" and dealing with homeowners has worked for me. When I go out and look at mobile homes, I ask myself two questions:
1) Would I live in this home?
2) Would I live in this neighborhood?
If the answer to both of these questions is "yes," then I pursue it. On the other hand, if the answer to these questions is "no" then I do not pursue it. When I go into a deal, I look at it first as a homeowner (who I deal with) and then as an investor - not the other way around.
Believe me, I've learned this lesson through experience. I got into a bad deal once where I looked at the home solely as an investor - bad idea. Why? In any business, I believe you have to have a product and/or service that you believe in and that you can stand behind. I don't buy cheap homes in bad neighborhoods - it's just not my style. The only reason I'd possibly look into buying a home in that kind of neighborhood is if I would move it. Otherwise, I just won't go into the deal.
So, you see - "Lonnie deals" work but not for everyone. Here is an article titled "Why Lonnie Deals Don't Work For Me" just to get another perspective. Now, this article sparked much controversy and debate among mobile home investors. Some even got really upset. However, notice the title. It does not say "Why Lonnie Deals Don't Work," it says "Why Lonnie Deals Don't Work For Me." Big difference. In the end, it will be your experience and your experience alone that will determine whether something will work for you.
Happy investing!
p.s. If you would like to learn why "Lonnie deals" work for me, check out this article. Thanks for reading!
Wednesday, May 20, 2009
Q&A: Mailbag
(Note: I've received many questions from people about mobile home and/or real estate investing. From time to time, I will post the ones I find interesting/relevant. If you have a question, feel free to send it in. Thanks!)
Q: I am ready to start investing in mobile homes. However, I will be relocating out of state in about a year. I am a little skeptical to get started right now because I will have financed homes that will be located out of state after I move. Do you think I should still pursue this right now or wait until I move and start then?
A: Personally, I'm not an advocate of investing out of your area - it just makes things more difficult if problems should come up. Since knowing the market is very important, it may be difficult if you are away and have homes in your present area - the market could change, situations could change in your market. If you're not there, it may cause problems.
If you're just starting out, one thing you can do is learn your market and look for deals for other investors - bird dogging is a good way to start and get the experience without taking all the risk. This way, you'll get some experience. Then, when you move to your new location you'll have the experience to go out and start off (if you choose) on your own.
Q: I am ready to start investing in mobile homes. However, I will be relocating out of state in about a year. I am a little skeptical to get started right now because I will have financed homes that will be located out of state after I move. Do you think I should still pursue this right now or wait until I move and start then?
A: Personally, I'm not an advocate of investing out of your area - it just makes things more difficult if problems should come up. Since knowing the market is very important, it may be difficult if you are away and have homes in your present area - the market could change, situations could change in your market. If you're not there, it may cause problems.
If you're just starting out, one thing you can do is learn your market and look for deals for other investors - bird dogging is a good way to start and get the experience without taking all the risk. This way, you'll get some experience. Then, when you move to your new location you'll have the experience to go out and start off (if you choose) on your own.
Thursday, April 30, 2009
Q&A: Mailbag
(Note: I've received many questions from people about mobile home and/or real estate investing. From time to time, I will post the ones I find interesting/relevant. If you have a question, feel free to send it in. Thanks!)
Q: Is it necessary to hire an inspector to inspect a mobile home? What are the major areas of a mobile home that should be inspected?
A: Inspecting mobile homes are usually just like inspecting single family homes. I just inspect everything from top to bottom including the roof (is it leaking?), major systems - electric, water, gas, etc., the carpet (look for soft spots), the outside - check the roof outside, the siding (usually wood or aluminum), the skirting, etc.
Usually, I just go in and inspect just like I would be buying as a regular homeowner. I think what types of things I would be concerned with if I were buying as a homeowner. I turn on the lights - make sure they work, run the a/c, run the water, etc.
If you feel more comfortable having an inspector do an inspection, that's an option. For me personally, it's not necessary. If you go this route, you can get a sense for what an inspector looks for and use it as a guide for future inspections.
For more info about how I conduct my own mobile home inspections, feel free to check out my article on inspecting mobile homes.
Q: Is it necessary to hire an inspector to inspect a mobile home? What are the major areas of a mobile home that should be inspected?
A: Inspecting mobile homes are usually just like inspecting single family homes. I just inspect everything from top to bottom including the roof (is it leaking?), major systems - electric, water, gas, etc., the carpet (look for soft spots), the outside - check the roof outside, the siding (usually wood or aluminum), the skirting, etc.
Usually, I just go in and inspect just like I would be buying as a regular homeowner. I think what types of things I would be concerned with if I were buying as a homeowner. I turn on the lights - make sure they work, run the a/c, run the water, etc.
If you feel more comfortable having an inspector do an inspection, that's an option. For me personally, it's not necessary. If you go this route, you can get a sense for what an inspector looks for and use it as a guide for future inspections.
For more info about how I conduct my own mobile home inspections, feel free to check out my article on inspecting mobile homes.
Thursday, April 16, 2009
Q&A: Mailbag
(Note: I've received many questions from people about mobile home and/or real estate investing. From time to time, I will post the ones I find interesting/relevant. If you have a question, feel free to send it in. Thanks!)
Q: Do I need a dealer license to start investing in mobile homes?
A: In some areas, you may need what is called a "dealer license" if you are planning to buy and sell mobile homes. Check with the local government authority responsible for manufactured housing in your area. They will be able to supply you with the necessary information and guide you through the process.
Q: Do I need a dealer license to start investing in mobile homes?
A: In some areas, you may need what is called a "dealer license" if you are planning to buy and sell mobile homes. Check with the local government authority responsible for manufactured housing in your area. They will be able to supply you with the necessary information and guide you through the process.
Thursday, March 19, 2009
Q&A: Mailbag
(Note: I've received many questions from people about mobile home and/or real estate investing. From time to time, I will post the ones I find interesting/relevant. If you have a question, feel free to send it in. Thanks!)
Q: Do you buy mobile homes for cash flow or do you flip?
A: Mostly for cash flow. There have been instances where investors want me to wholesale to them - some people don't want to go out and do all the work to go out and look to put the deals together.
Q: Do you buy mobile homes for cash flow or do you flip?
A: Mostly for cash flow. There have been instances where investors want me to wholesale to them - some people don't want to go out and do all the work to go out and look to put the deals together.
Subscribe to:
Posts (Atom)
Posts
