Need some guidance on M/H - Posted by William G. Reau

Posted by Branden Bestgen on June 25, 1999 at 06:23:23:

How do you plan on making your profit? It sounds to me like you’re paying retail price (or higher) for the place. Figure out how you plan to make some money before you tie this one up. Unless it’s a jewel and the location has something to do with it, that’s about what I’d sell one for on contract where I live.

Branden Bestgen

Need some guidance on M/H purchase…sale… - Posted by William G. Reau

Posted by William G. Reau on June 24, 1999 at 18:51:39:

An elderly couple (in ill health) have a mobile home for sale bordering a state park. They own the unit free & clear, however, they owe $11,000 to someone and need to pay
it back out of the proceeds of the sale.

They’ve had it listed (FSBO) for $15,500 as suggested by a
realtor friend since 11/98 and on three occasions their
buyers couldn’t qualify for the financing. Due to their
illness they are unable to do much of a selling campaign and
are anxious to get it off their back. They need $500 for themselves to solve another problem they have. My closest
friend is to whom they owe the $11,000 and she has asked me
for help in resolving the situation.

Due to the age of the unit (1968 - 1972), I know most principal investors will not be interested in buying even a partial of a note created in a sale. The unit (located 50 mi. from me) is supposedly in very good condition with a large addition & new roof done in 1996. There are lots of
items included in the price and it is fully air conditioned.
No property included as it sits on blocks/rental lot.

I am going to take a look at it in a few days and am trying
to figure the best way of approaching this. My friend does
NOT want to be involved, so, do I offer $500 and have them sign the title over to me & then sell it myself & pay off
my friend…or…do I write-up a contract that wraps the $11,000 owed to my friend and pays them $500 at closing…
leaving me the rest after closing costs, etc.?
Will appreciate your input, please?

William, Columbus, OH

Re: Need some guidance on M/H purchase…sale… - Posted by Dan (NC)

Posted by Dan (NC) on June 25, 1999 at 08:53:02:

Obviously I don’t know the market, and I suspect you don’t either. What is this home worth, as is, where is? Even in good condition, this sounds like it might only be worth 1K, depending on condition. Do your homework before you make a costly mistake. It just might be that you can’t help these folks, except as charity.