Mobile Home Sandwiched in Pretty House Deal - Posted by Scott Brown

Posted by Scott Brown on May 18, 2001 at 10:51:46:

My partner and I recently acquired a very nice piece of land with a nearly new manufactured home (garden tub, etc?) on a lease option. Our intent is to make approximately 15k on the back end lease optioning it to someone else and more importantly generate a free cash flow.

A VERY motivated buyer showed up willing to give a 3k down payment, $675 per month (underlying is $401) on a lease option with a great spread on the sales price (55k mortgage and 74k sales price). He is motivated because he has a 1985 Catalina model 6210 14? by 52? mobile home, 2 bed/ 1 bath that he must be out of it by June 1 AND the trailer must be moved. I purchased and read Lonnie?s Deals on Wheels almost 2 years ago then lent it to my mother and brother in California who never use the book and don?t find time to return it. Hence I can?t remember the details of how to analyze whether we should help our buyer sell the trailer or whether we should take title to it or what.

I do know that the mobile home could be moved to a park and sold as a typical Lonnie deal. Does anyone have any additional guidance. We are in Columbia, South Carolina. Particularly interested in comments from Lonnie, Ernest Tew, Carl, John (Ohio) or Tony Calela. Should we just put the motivated buyer into the property after taking his deposit or can we make an additional profit on the trailer.