Posted by Tim (Atlanta) on July 21, 2000 at 08:24:05:
Have you read Lonnie’s books? If you have, go back and read them again. The answer to your question is in those books.
Meet with the owner at the property. Point out (in a nice way) the problems with the home. Most likely he knows what is wrong, but it is a good way to work down on the price. When you are finished going over the home, ask him the magic question :
“If I could pay you all cash, what is the least you would take for it?”
How much should I pay - Posted by Seth
Posted by Seth on July 20, 2000 at 23:37:14:
I have found a mobile home in a park that is in fair condition. The asking price is $2,500 but the home needs a lot of work. It has been for sale for about 3 months now and probably is behind in lot rent. I’m not really sure how I should approach the owner to get him to come down on the price to about $1,500. Any suggestions are welcomed.
as little as you can. - Posted by Dirk Roach
Posted by Dirk Roach on July 21, 2000 at 12:47:22:
Hi Seth,
listen to Karl and Tim, read, or reread Lonnie’s books. And talk to the PM. You haven’t done your due-diligence yet, so you don’t know the parameters of the deal (if it is one).
After I know the scoop, what I often do, is do my version of Lonnie’s squire-dog technique. I had to modify it, because unlike Lonnie’s wife Joanne, I can’t get my wife in the mobile home park.
So I use a memeber of my crew. I have a clip board with everything spelled out on it for them to look at it/ for.
While I’m haveing a cup of tea, with the seller, my guy/gal is crawling under the house, and looking at the ceiling inside of closets. They are also marking everything off on the clip board with a big red marker. After I look at the report, I often times, pull out a bunch of fifty dollar bills and make a big pile next to a contract and pen. The ammount of fifties depends on how much I want to pay.
I have found this to be a very effective way of negoitating. And it has worked time and time again for me.
Anyhow, be sure to do your due dilligence first in regards to back space rent, and taxes etc. NEVER just go on the word of the seller.
Dirk
Re: How much should I pay - Posted by Karl (OH)
Posted by Karl (OH) on July 21, 2000 at 10:33:25:
Don’t forget to talk to the park manager to make sure the home can stay. If he’s behind on lot rent, and you get stuck paying it, consider that in your price.
If you tell the PM you’re interested in buying it and fixing it up, they may cut you a break on back lot rent. But don’t tell the seller this.
Tim had the best advice, re-read DOW.
Karl Kleiner