Posted by brad on July 24, 2002 at 14:14:02:
have you contacted the lender to see what payoff is or is she adding up the remainder of payments to let you know what is owed? the real figure may surprise you. what are rents going for in your area you mentioned lot rent 175 and payment 250 thats 425 are rents high enough to give you some profit. there are ways to make money off of this but first find out the facts to make sure its something that you want to deal with.
Need Advice Fast!!! - Posted by ToddK
Posted by ToddK on July 24, 2002 at 09:28:55:
I have never dealt with mobile homes. I usually do lease options on Houses. Today I had a guy call me with a mobile home that was bought in 2000 it is a 1999. Monthly payments are 250.00/mo. and he owes 16.5K. It is currently in a park on two lots where the rent is 175.00/mo. He just wants out from under it. Is there a deal here? What approach should I take??
Thanks,
Todd
Re: Need Advice Fast!!! - Posted by Shawn C Crump
Posted by Shawn C Crump on July 29, 2002 at 08:53:59:
There is a possible way to make this a great deal.
If the owner writes a hardship letter, in her own hand, & her own words, explaining why she can’t continue to pay, and expressing, in no uncertain terms, that a default is inevitable, then the lender’s attention will be gotten.
Then arrange a short payoff with the bank, or better yet, offer to buy the non-performing paper and go through the “trouble and expense” of foreclosure/eviction yourself.
Also have a couple of fellow investors make offers that low-ball yours.
This is a strategy we have just started using, and it looks like it might work pretty well. We have several offers in with banks, but no bite, yet. Others tell me that it will work.
Hope it helps.
Respectfully,
Shawn C Crump, N. KY
Re: Need Advice Fast!!! - Posted by Jacque - WA
Posted by Jacque - WA on July 24, 2002 at 11:59:14:
Hi Todd,
You will find lots of these types of folks. Most of the time there is no deal as the home owners owe more than the homes are worth. Instead of assuming equity you wind up assuming their bad debt.
However, there are the rare cases where they are close to being paid off and would make this type of deal feasible.
In that case you may want to consider entering into a net lease with option to purchase. The option price can be set anywhere from $10 - $100 ( I usually stick between $10 - $50) and that comes off the price of the loan.
Then I advertise, find a buyer - enter into a lease with option to purchase with them using the down payment as part of my cash flow. The option price is on a higher interest rate than what I am paying and the monthly loan and rent payments are higher than I am paying. This gives me a nice spread and a positive cash flow ? it also results in a build up of equity in the total receivables.
As I said, most of the time there is no deal here and I personally wouldn?t assume a $16,000 debt of someone else?s. If it were $6000 then it would be a different story. Someone else may have some other advice for you on there own experiences and philosophies.
Good Luck,
Jacque - WA
Re: Need Advice Fast!!! - Posted by ToddK
Posted by ToddK on July 24, 2002 at 09:57:38:
quick update. The mobile home is a Champion 16X60. She bought it in 2000 for 21K. She has a ballon payment of 11K due in three years.
Todd