Hi Flash,
Yes I am getting into mobile homes myself. What a great cashflow vehicle! With very similar returns to what you have predicted. 50% ROI is being very conservative. I also work on these numbers. I purchased the mobile recently for 6kUSD. It is a big home, 3 bed 1 bath and looking to sell it for anywhere between 12-14k under owner finance at 12.5% interest.I have a buyer from California who is looking at it tomorrow so we shall see how it goes.It is a great time now to be getting into these deals as it is tax time in the USA and people are on the lookout again.
Keep the posts coming, I’m enjoying reading them.
Regards
Chad
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
Hi Guys
firstly the tour by AHA- these guys are excellent , some of you might consider the charges high, but if you what to stay at quality accomodation (as they are) and offer a quality tour it comes at a price. Their fees are a lot less than what some offer.
Chad, just be careful with the ongoing tenant issue with Mobile homes, i’ve spoken to numerous people in the mobile home game and you have to be aware that you are dealing with the lowest quality of tenants. Quality management is essential. I find that even with homes the quality of property management in the USA is below what i expect.
I strongly suggest you actually get to the states and see for yourself whats on offer.
regards westan
Buy in the USA – [email protected]
Westan,
Thanks for the advice on the mobile homes. I appreciate the word of caution. We are not actually renting them out however but owner financing them therefore the upkeep is not our responsibility which is great as it takes away the tennant issue as you rightfully addressed.The strategy is also done under a joint venture arrangement in which my contacts in the USA actually have an interest in the program. This also eliminates the investors risk as they are not in it on there own and the investment is fully managed for them as one of the responsibilities for the life of the investment.
It is a powerful strategy as the investors initial investment is paid back to them within 12-15 months depending on the deal and the rest of the term is pure cashflow with no money tied up in it.
Also just recently got back from the states and planning another trip in April.
Again, thanks for the word of caution.
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
Hi Chad
while you doing owner finance you still hold title. I believe there is a high “fail rate” with these type of homes. The home foreclosure rate is high already in the US be prepared to become the owner of these again. I’ve seen the way “owners” leave homes when they foreclose on them , they are often worse than Tenants. So just be careful, remember there are reasons why the banks want lend to these type of people who need owner finance !!!
With your strategy i gather you are supplying the money side of the deal ?
regards westan
Over 100 deals done in the USA in 2005
Buy in the USA email me at [email protected]Hi Guys,
America really is the land of opportunity as is Australia and New Zealand if you have ‘the eye of the tiger’ and are serious about making money.
As most of you know,I moved over here last year and am learning more and different techniques from investors each week. I am currently working on short sales where ,each week I see hundreds of pre-foreclosures on the net.
I try to get to as many houses as I can,and stick a hot pink note saying’Please call Lisa’ on 615 243 5397.
The men get home and think ‘beauty’ or the wife thinks who the hell is Lisa.I always get a call.!
Then I say ,I want to help you and they pour their heart out.They sign the house over to me to negotiate a payout with the bank.
That’s where you make the money,you start out with an offer of 40c in the dollar on fair market value.Once the bank accept’s it goes straight on the market for a wholesale price to a investor.
I have spent weeks researching all about short sales and have only just started last week.I do know people in the Nashville Investors club who are doing really well so wish me luck…
The door knocking can be a bit of a hassle but I like it I have made some nice friends.Not all people with foreclosures are ‘PIGS’,they have just had some bad luck.[biggrin]Feel free to email me for any questions.
[email protected]
http://www.realestateinvestmentfinder.comLisa Lammers
H Westan,
This is actually a very low risk investment with very high returns .Which is why I am investing in them.Implying that the failure rate is high is a very general statement. A bit like saying that the property bubble in the USA is about to burst which in general terms may be correct in some states but doesn’t apply to the entire country. It also allows investors to enter the market with very little money down, but provides them a very nice cash flow.The failure rate in my opinion is extremely low with the success rate very high. Once again our strategy is very specific and the risk profile is very low.In any market some make a success out of it some don’t. It all depends on whom you are dealing with. I have seen the mobile home concept, I have spoken to investors doing it, it is huge in America with many investors using this strategy.
I encourage yourself and others to have a look at some of the USA forums to see all the “positive” things and success stories associated with the mobile home strategy.
Like anything you need to know what you are doing and have the right measures in place.
Our market does not need marble countertop or grade A carpet or top of the line appliances. So therefore it’s actually easier and less expensive to get our properties back on the market in the event that anyone does foreclose.. With that said, do we have to do work on them, of course just like with anything else but it’s less work and less expensive.
As far as being prepared to “become owners” of the home again, well those who are using this model and understand it, also don’t see that a threat but as an opportunity to make even more out of the investment. We are offering these homes to investors and selling them for double what they paid for it. In the event that the home does become vacant, we simply find another buyer.
The home foreclosure rate is very high in the United States. I only see this as a huge opportunity to pick up great investment opportunities. It also makes the mobile home investment that more attractive and in demand.
This is a fairly new strategy to the Australian market and like anything will take time to understand it so I do appreciate and understand your concerns. I however think they are a great cash flow vehicle and will definitely be adding more of these to my portfolio in the future.
On your comments on owner finance, once again you can look at the negatives and the positives. For me I see at again as an opportunity. Many have made a huge success from “owner financing” and has been a vehicle of many high profile investors.
At the end of the day, you either like it or you don’t. All investments have risk and all have there place.Everyone has there own view on investing and the mobile home strategy wont be everyone’s cup of tea. I do however encourage investors to do there own research, and to get the facts about mobile homes before discounting it because the true picture is actually a positive one and it actually works very well.
Anyone interested in finding out about the mobile home strategy can call me or e-mail me directly. It is up to the individuals if they wish to pursue them or not.
I simply just responded to flash who was asking if anyone was doing it.
If you have any further questions on the subject feel free to e-mail me as I would be happy to explain it in more detail.
Once again I do understand your concerns! Initially I had the same view and doubts until I saw it for myself. The way my business partners have set up the operation has allot to do with my confidence in the concept.
Regards
Chad
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
HI Chad
It sounds like you’ve gone a lot of research, and you obviously feel comfortable with the investment.
This is actually a very low risk investment with very high returns, not trying to talk you out of it just giving you a few “poterntial problems” that have arisen for others.
If the buyers defaults and you end up with the property back -it does happen, the other day i was talking to a guy you ended up with all 8 properties back within 8 months ! Given that you didn’t get the loan payments in (from the buyer), then have to re-present the property for resale (all the refurb costs). You could end up with low income and high expenses !! So just be careful if you think its
VERY LOW RISK. All investments carry some risk, this doesn’t sound like “very low risk”. It may well prove to be a sensational investment for you. Just check what sort of default rates your partners are experiencing.
regards westan
Over 100 deals done in the USA in 2005
Buy in the USA email me at [email protected]Westan,
Thanks for the advice once again . I will defiantly keep those “potential problems” in mind . If I do encounter anything major, I will definitely post it on the forum to make everyone else aware.
Cheers
Chad
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
As someone who has spent the last 10 years in Qld working in the Vendor Finance market i believe every investment carries a form of risk.
It is just about how you approach the managment of that risk and also the strategies you use to diversify your risk. Education is key and dealing with professional in their field is important especially when you are dealing in an overseas market.
All i can say is for my clients that have purchased a Mobile Home through Chad and his US associates they appear very happy with the returns they are receiving and the way in which the investment is managed.
Richard Taylor
Residential & Commercial Finance Broker
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
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