Financing my first deal - Posted by Steve in Alabama

Posted by Tim on January 21, 2004 at 08:15:14:

Where in Alabama are you? I’m in the Auburn/Opelika area, within the city limits you could not put 2 trailers on one lot. In the county you probably could, but it depends on how the ground perks. If the septic system is big enough you could put 2 trailers on it. I can’t stress enough that you need to talk to the health department for your county & verify that the septic system was properly installed & inspected. Keep in mind you will have moving & setup costs, & that a truly motivated seller will often take 25% or less of their asking price.

Most (95%) of my experience is with houses, but I have done a couple land or land/home deals. Feel free to email, & I’ll try to answer any specific questions you may have, just put “Steve in Alabama” in the subject line so I don’t delete it without opening.

Financing my first deal - Posted by Steve in Alabama

Posted by Steve in Alabama on January 20, 2004 at 22:53:59:

I have found a parcel of land (about 1/2 acre) that had a mobile home on it about 1 year ago, and now has sat vacant for about a year. I think I could probably get it for around $8000. It has electric and septic hookups already there. I have also found MANY MANY MHs within the $3500-7000 price range. I am wondering what my options are for financing. Could it be possible to take one of the 100 or so credit card applications I get every week, borrow enough $$ on one of the cards to make the purchase, and owner finance the home only (not land) and at least make my payments until it paid for itself? I have EXCELLENT credit, but I’m just like most middle-aged guys, got a house, 3 kids, and some consumer debt, so I really don’t want to have to go through the bank to finance the deal. Most cards APR run ~ 21-26%. Am I crazy for considering doing this, or should I just pay cash for the land, let it sit empty, until I have the money for the home? I am leaning toward just paying cash as I go, but it will take me about a year or so to get my first home in place. The more I read on this website, the more eager I get to structure my first deal, and get the ball rolling. I’m thinking I could get $200-250 monthly for the financed home and $100 for the lot rent ($300-350)

ps If I worked it just right, I could probably come back in a year and put another home on the same parcel, and owner finance that home also. There would be enough room, it the homes were situated a certain way on the land to begin with. There appears to be enough room on the land to have more than one home.

Any advise is appreciated.

Steve

Re: Financing my first deal - Posted by Paul Stryer

Posted by Paul Stryer on January 21, 2004 at 15:39:59:

www.mobilehomesrus.com

Hello - Sounds like you are in a very good postion to make this land home deal work. i would get a bank loan for the land with a low intrest rate. You might also be able to do a equity line of credit on your house for about 16K and get the land and home at the same time. I have a equity line of credit and it is at 4% you can’t beat that. No sence using your credit cards at 20% when you can get 4 to 6% on equity line.

I have a bunch more ideas on the subject drop me a email and let talk
paul@mobilehomesrus.com

Cheers and good luck
Paul
www.mobilehomesrus.com