Wholesale New Dealer

[Dale Osborn]

I am looking for a source to buy NEW MHs at wholesale prices to fill in 10
vacant sites in our MHC. Any help would be appreciated. I am looking for the
following: SW 14X80 or 16X80 3bed/2 bath wind zone 2. Needs to be set up and
pass city inspection. Thanks!

Dale

[rmurray]

You might be able to buy directly from the palnt of your choice...ubt sounds like you are in Florida..if so you will have to get a deler licence...To do so you can call the Florida Manufactured Housing Association for direction and advice...If your MHC is not now a member..you might want to consider joining...The benefits are many....A licence in Florida takes a while..and will require a proper bond...these sometimes are a little hard to get..expense will total about $800 to $1000.....

Most manufactueres will not sell to none dealers directly...Also..manufactuers DO NOT SET Homes...You will be lucky if you can get them to spot deliver directly to the apot you want it set...You might talk to dealers in your area about a quick wholsale deal...The set up function is all on the dealer...Some locally owned delaers might very well work with you directly off the factory invoice sheet..plus the srt up costs of course...Check with dealers in your area...Many plants do not build single section homes any more...A few probably still do...Check with the dealers for this info....

Good Luck...

[David Oxhandler]

What state are you located in? Check the Manufactured Housing Yellow Pages for builders and dealers in your area.

[Dale Osborn]

David
I am located in North Carolina and all the Dealers want to sell retail with a $10K commission inside the transaction. I do not mind paying some amount as a commission, say $2-3K, but $10K for each one is a bit too much. I never would have been aware of just how much the commission was, but Fleetwood sent me an offer to sell at wholesale and also sent their price list at wholesale. I said OK I will try one as a trial balloon to see how well they would be accepted and then was told they couldn't sell to me at their wholesale prices I was quoted. I needed to get a Dealers license. I filled out the application and sent in the paperwork and then was told I needed to apply for Insurance license also with another pile of paperwork and another fee. I do not want to sell insurance so threw my hands up in despair at that time. $24K wholesale & $35K retail for new stuff.
Then, after hurricane Katrina all the dealers bumped their prices up some. North Carolina had some serious flooding in the Eastern part of the state in Oct from hurricane Ophelia passing by so slowly. The dealers again bumped up their prices "due to the flooding" and now the same SW that cost $35K now costs $42K. It is a shame they use the slightest bump in the road to boost their bottom line. Perhaps that is why so many Fleetwood dealerships are closing up.

Dale

[rmurray]

If you want wholesale you must pay the costs that go with it..licences are a cost of doing business...The next license would be a mortgage license in most states all required to be a dealer....Soon a dealer license will not be available without classes like a real estate or insurance license....Apprentice periods will also be required in many states...Criminal background and drug tests are also on the way in some states...All this is HUD's way of cleaning up the industry...

Try calling the sales manager at the plant and ask if he has an independent dealer who will work with you for the volume bonus money...Some will..There have Benn substantial wholesale price increases since Katrina..with more to come...Looks like you will be a Katrina victum to the tune of $70,000..small next to those souls in LA or MS or AL..

Good Luck with your project...

[David Oxhandler]

Dale -

If the local fraternity of dealers was raking in five figure profits on each deal there would not have been such a high percent of N Carolina retailers that went bankrupt and closed their doors over the past ten years.

Do you have any idea what the cost are that the dealer has to pay for out of his mark-up?

Delivery, Transport Permits, Site Prep, Installation, Building Permits, Impact Fees, Approvals from local Building, Health, Planning, Zoning Authorities. Sales commissions, Finished operations Insurance, Workman's Comp, liability coverage, Title registration, AND the interest that the dealer pays on YOUR home from the day it leaves the factory 'till your lender funds... have all been following the price of gas up and up and up...

You can find out what each of these costs are in your area. Add them up and you will be shocked at just how little the dealership profits from each sale.

[Dale Osborn]

Looks like I will stick with the repos. It would have been nice to have some 2005 models to put in. Will wait for warmer weather and start looking to see what is available. Thanks for all the helpful pointers. Will make one last effort to call some of the builders directly.

Dale

[David Oxhandler]

Dale -

I have had a dealers license for the past 25 years. For the first ten years I sold new homes... then I discovered that there was a lot less problems and a lot more money to be made with used and repoed homes.
There is a Repo Liquidation In Progress on line..AND THEY ARE OFFERING FINANCING! These pre-owned homes are newer models with many of the same amenities found in a new home but the price is significantly less.
Click Here and bid on the home of your choice today.
There is a down side... When you purchase a repo, most of the time, you buy it "where is, as is". You are taking over the finance company's position in the home. The original owners agreement with the finance company has nothing to do with the commitment made to the landlord. Depending on state law and the contract that was signed between the original owner and the park, before you remove the home from the park you may have to pay back lot rent, late fees, taxes and penalties.This can be quiet expensive and the landlord may very well be entitled to recover the rent agreed on with the original owner for every day the home sits on his land. Prior to committing to purchase you must investigate all the possible expenses and should have a good understanding of your state and local landlord/tenant laws. In many state there is an extensive body of law governing the relationship between MH Community operators and their residence.Once you get past all of that, it is your responsibility to get the home moved to your location and to install it according to your states installation code. If the home has hidden problems, is damaged in transport, or is refused permits by your local permit authorities the headaches and expenses are yours.You can get some excellent buys on repos, but unless you are an experienced buyer with renovation and installation abilities it is very possible that the expenses involved in converting that repo into your residence could be a very unpleasant surprise, and even exceed the cost of a new home.If you want a good buy on a pre-owned home shop your market for a licensed dealer who is specializing in re-marketing finance company homes. You can often save quiet a bit of money and you will have the benefit of a licensed, bonded professional to manage the conversion of the banks problem to your bargain.

[Charlie Taylor]

Like Mr Oxhandler said, the difference between "wholesale" and the retail prices you are getting have a lot of costs hidden in there. A manufactured home dealer also assumes a lot of liability every time he sells and or delivers a home. Some customers are looking for any excuse to sue someone today.
I have been a dealer for over 20 years and in the heyday of the 90's I sold in excess of 300 homes a year with a gross sales of over $7,000,000. I had to watch every dollar I spent and my bottom line (Before taxes) would run somewhere in the 7% range. A 7% return on investment is not unreasonable. A lot of dealers are lucky to net 2-3%. Anyone who thinks dealers are raking it in should get into the business themselves and see what it's really all about.
I get "customers" all the time who want me to sell at a small markup. My company decided a long time ago that if we were going to go through all the details of running a business, paying our taxes, servicing the customer, etc, we were at least going to make a profit doing it.
I wonder if Mr Osborne "cuts a deal" on his lot rent or has his rental fees set so that he can pay his overhead and still keep some of it?
Charlie Taylor

[Tony N.]

Dale,
I have a source that sells used mobile homes at just about half the price of new ones. The delivery price is high but you could get a double wide home just a few years old at the price of a new single wide. I have just recieved my dealer license and have not tried this source out before. If you are interested perhaps you and I could come to terms. either way, best of luck!

warmly,
Tony N.