Buyer needs to sell MH to generate cash down on house - Posted by Robert

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.

Buyer needs to sell MH to generate cash down on house - Posted by Robert

Posted by Robert on November 02, 1999 at 12:52:22:

I have a buyer that has a paid off 1990 MH. It is sitting on a rented piece of property. She wants to sell the MH and use that money as down for the house I am selling her. How can I put this together.
The catch is that someone wants to sell her a lot for 39,000 and will move it and set it up on perm foundation.
Any suggestions


Re: Buyer needs to sell MH to generate cash down on house - Posted by mike

Posted by mike on November 03, 1999 at 12:18:59:

Hi Robert,
There are many solutions available when you use an exchange agreement. For instance, it could possibly work this way. Exchange the MH for the house and counter offer that you will only take the MH if you or the owner will find a taker for the MH.(ie: the MH lot owner) and earn a commission on the MH (and possibly a fee from the MH lot owner. If the MH lot owner would pay you a fee for getting rid of the lot but he would not want the MH then ask him to take the MH and sell the lot and MH back to you on sweet terms. (Assuming that you can flip the MH or keep it for good cash flow)