Here's the Deal... - Posted by PJ

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Posted by Phil Pelletier on March 06, 2003 at 19:12:57:

In my opinion (and everyone is entitled to my opinion), you are barking up the wrong tree. Those people are in a real bind, because their home has depreciated below what they owe on it. That is not your problem, and usless you are willing to come up with $69,000 to pay off the note on the home and then sell on an owner contract to someone else (which would be outrageously stupid), there is no opportunity for you there.

I can imagine those folks are motivated to sell, but they will be in that home for a LONG, LONG time and their money will be going down a rat hole each month. However, look on the bright side: They probably have a very nice place to live and the monthly payment is reasonable. I just hope they are saving and investing money elsewhere, cuz they ain’t gettin no appreciation in that home!
Scenerio B:
Go find a 15 year old home you can buy for $3,000 and sell for $10,000. Now THAT’S an opportunity. If you can’t see the opportunity in Scenerio B, go buy and read Deals on Wheels, by Lonnie Skruggs. It will help you see opportunity where others see only tin.

Phil Pelletier

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Here’s the Deal… - Posted by PJ

Posted by PJ on March 06, 2003 at 16:56:53:

1998 Fleetwood, 3 BR, 2 bath, excellent condition, owners currently owe $69,000 P&I. Their monthly payments are $625 for the home, $285 for space rent for a total of $910. Owners are very motivated to sell, even had house listed a year ago with RE agent, but after 5 months it didn’t sell and RE agent let them out of their agent contract.

The area they live in is a very nice manufacturered home subdivision, but there are many vacant homes due to downturn in economy. (6 vacancies out of 30 homes on one street alone.)

How do I help these people and myself at the same time? Where’s the opportunity? Should I get home under contract for 60 days and try to flip it, or advertise it as no bank qualifying? Comps are selling for under $48500…