Selling really old renovated manufactured homes

[jumpenjuhosaphat]

I have seen several mobile homes for sale that are less than $1000. They are old and dilapidated and of little value to anyone. I have talked with a local mobile home investor, and she told me that no matter what you do, you can't build value into these homes because they are cash sale homes only. She told me that finance companies won't touch a mobile home built in '85 or before. So my question is, if you completely renovate a mobile home and make that home so that it is in better condition than a mobile home rolling off the manufacturers floor, could you sell it for a profit? For instance, if I got my hands on a 1971 model, and replumbed, re-wired, drywalled, painted, installed new floors, new windows, new siding, and built a shingled roof, and overall spent roughly $10,000 on the purchase and repairs, how much could I hope to resell that home for? And is there a finance company out there that would indeed finance for a home that age?

[rmurray]

Resale value like any house is mostly location related....If the home is in a good location it could sell for a generous profit..BUT remember you Cannot make a silk purse out of a sows ear.....

Most large national lenders will not finance pre-HUD models or no older than 1976 model year...But local banks who know the area might very well carry an older home.Most sellers of this kind of home finance their own..Then they sell the notes or borrow off the contracts..You might profit from this book..The "bible" of the used home business...It will tell you how to check on state license requirements (most states would require you to have a dealers license), how to buy a home, what to price a home, how to finance a home and has copies of all the proper paperwork included....The cost of this book is FAR less then 1 small mistake while you are learning by trial and error method...You can find it here...

http://mobilehome.com/lonnie_scruggs/

Good Luck..

[admin]

All manufactured homes in the U.S. built since 1976 must comply with the Federal Manufactured Home (HUD) Construction and Safety Standards. Homes built PRIOR to the code are very difficult to get financing for because the building standards were on a state by state basis, or non existent, and financial institutions are reluctant to accept a home that could have sub-standard construction as security for a loan.

Your home was built prior to the establishment of the code, so it will be difficult to interest most institutional lenders to grant any financing. But this should NOT stop you from selling and making an excellent profit. I have purchased, renovated and resold dozens of pre-code homes. Because of the lack of regular financing you can find homes, that were well built and have been maintained that are in great condition. You can often be purchase them for very low cash offers. The key to making great profits is owner financing.

In the early 90's I operated the largest MH repo and referb business in Florida. At that time we were the recovery agents for the Federal agency that led the bail out of the Savings & Loan Industry. We had over a hundred government owned repos on our lot and were willing to take just about anything in trade to assist in clearing that massive volume of homes. As a result we took about a dozen pre-code homes in trade. We lined them up in the back of the property and came to the realization, just like you did, that we were vested in homes that were unfinancable by conventional lenders.

We placed an ad in the local newspaper that read "12 Homes Owner Financing - $99 Down $99/month". These homes were all in rough condition. We had not done any renovation work, so had no real money invested. We thought that we would probably never see any payments but it would be a good way to remove our headaches, In those days before, installer licensing, it was very inexpensive to transport mobile home and to block and anchor it yourself.

Over 2 week-ends we sold all of those old homes. As they went down the road one by one I felt like Huckleberry Finn, having collected almost a hundred dollars on each for someone else to remove our junk. To my happy surprise on the first of the next month every one of those buyers came to our office and plunked down another $99. Over 90 percent of them continued this 'till they paid off the finance contracts they has signed with us!

Over the next five years we collected almost six thousand dollars, pure profit, for each of those homes. In those days we were selling brand new mobile homes for as little as eight thousand and were very happy when we could make a thousand dollar profit. This opened my eyes to why banks had marble pillars and stairways while I had a wood deck.

To get a better handle on this incredible way to build income and wealth read these free articles from Lonnie Scruggs. Lonnie has been called the "Father" of the used manufactured home business. Lonnie shares his many years of experience and shows you how to make fantastic profits in one of the least recognized, yet best money making business in the country.

How To Make Money While You Sleep

An Old Mobile Home Or Money In Disguise?

How To Create Cash Flow With Older Mobile Homes

For a less then a tank of gas you can purchase Lonnie's classic book Deals On Wheels

Now also available for only $19.95 as an E-Book for instant download