Posted by Roy_MA on November 02, 1999 at 13:37:26:
This is the Ferry Tale of Robert’s scenario. This is a real life event here, folks. Only the imagination of the tale teller is really “Way Out There.”
Once upon a time, there was a man named Robert. He had just this one little problem: he had two voices in his head…the one who spoke normally…(and the one who spoke in parentheses.)
The situation is sorta out of your control (no…it’s not.)
What does she want…to live in a house or to live in a wobbly box? (Point out to her that a house and land will appreciate faster than just land, because the MH WILL depreciate, maybe drag down the appreciation of the land.)
Who is carrying the contract for the land? Is it seller financing? And is that why she is interested? Or is it going to be a “standard” land loan and the bank is looking for a substantial down payment? Where is the money coming from, and how much will she have to pay? (So she wants to buy the house. Point out how wise a decision that is. You take the MH at an agreed price as the down payment plus any additional money she wants to put down, with you taking seller financing.)
Now YOU go to the other “Someone,” negotiate the lot price to something less than $39K. Include in the deal that “someone” will move the MH AND BE RESPONSIBLE FOR ANY DAMAGE TO THE MH CAUSED BY THE MOVE, and set the MH on a permanent foundation. (You, in effect, are stepping in and taking “her” position.)
So you know have your house sold, maybe some additional money from the down payment in your pocket. (You also have a MH set up on a piece of land THAT IS BEING PAID FOR BY HER CASH FLOW TO YOU from the home you got her happily involved with.) What next?
You now have a MH attached to land…that you own. (Could you sell that? Probably. What you could end up with…is two cash streams coming in and none going out.) Do you think you could structure it for positive cash flow? (I think so.)
And this tale teller will not even mention the possibilities with the notes you now have in your portfolio. I don’t know enough about them. (Yet.)
And Robert lived happily ever after.