Posted by Ted on January 06, 2010 at 19:21:38:
Brenda,
I appreciate the post as I’ll redo Deals on Wheels for a refresher. Thank you very much.
Newbie needs help evaluating deal. - Posted by Ted
Posted by Ted on January 06, 2010 at 07:49:18:
I found a 3br/1ba sw mh 1980 selling for $8000 lot rent is $300. I have Deals on Wheels and want to know how to go about making an educated offer on this home. Since, I’m new to this I figure I can learn from this experience. Should I find out what the taxes,expenses etc assoc with the property and then make an offer. I’m looking for a method to make a informed offer on this home.
Only Motivated Sellers - Posted by Dr. B. (OH)
Posted by Dr. B. (OH) on January 07, 2010 at 20:18:17:
I have not bought a home in about 6 months due to 2 reasons: I am paying down my debt to get into a better cash position and I haven’t come across any motivated sellers…until yesterday.
PM from my pet park gave my number to a woman looking for cash buyer. Lady calls and reports her mother has passed away and she wants to sell the trailer. It is a 1970s 12 X 60 2/1. I am currently selling off my 70s homes for low, low cash cause they are now 40 years old, small, old styling and tired. I happened to be planning to go by that park anyway and said I’d meet her in two hours.
The home was purchased new by her mother and was in better than showroom condition. It had a “roof-over” new aluminum roof, new aluminum awning, new upgraded electric furnace, new water heater, and immaculate shag carpet. It is the first 1970s home I have seen in my 7 yrs of doing this with NO HOLES in the underside of the home, NONE! There were exactly 2 weak spots in the floor. The newer appliances are to go with it. Outside was painted nicely. While walking through I indicate the difficulty in selling an older home, especially a 2BR. I tell her about the 1994 2 BR up the street that hasn’t sold in 4 mos. But I’m THINKING tax refunds are coming shortly. I’m thinking I can sell this place for $4000 cash or $6000 on a note because it is immaculate. There’s a nice shed too.
After lots of chit-chat with the lady about her mother, cleaning out the (immaculately-kept) house, etc. I asked what she wanted to get out of it. “$2000?” She said. I scrunched my face and said something like “ooh-oh-ugg”. I said “I’ve got to make money on this you know” I said I usually get these for $0-500. I offered $1000. She said she’d want to take the fridge. I offered $200 for the fridge thus making it $1200. She said she’d have to think about it. Realizing this is an incredible deal, I remembered she said she’d have to pay February lot rent so I told her I’d cover it in the deal (knowing I get free lot rent) She said: “O.k, good I just want to be done with this and not have to try and sell it.” She signed the Agreement.
This is a simple example of a motivated seller.
Steve
Re: Newbie needs help evaluating deal. - Posted by JeffB (MI)
Posted by JeffB (MI) on January 06, 2010 at 21:05:28:
I agree with what Brenda said, except that I don’t see anywhere in your post that you said the park owns the home. If they do own it, I wouldn’t touch it, especially anywhere near that price.
In my market, a 1980 anything wouldn’t sell for more than $5k or so and that’s on a note. I wouldn’t pay a penny over $1,000 unless it was in mint condition. Even then, my max would be $2,000.
My personal practice is not to make offers. If the seller is truly motivated, they will lower the price drastically just by me showing no interest. When it gets within striking range (which for me would be maybe $3-4k on this home), only then do I begin to negotiate…
Re: Newbie needs help evaluating deal. - Posted by Brenda (OH)
Posted by Brenda (OH) on January 06, 2010 at 12:26:12:
Ted,
DO a quick re-read of deals on wheels…
Back taxes may have been cleared when the park got title, or they may only have a signed titled, and not gone to court to get title in the parks name, in which case, the taxes may still be unpaid…
You need to get into the home to see what repairs may be needed. if no power, price it as if all the pipes are broke, and the furnace doesn’t work etc lol
what dimensions are the home? 16 by 80 sells easier than 14 x70.
Prices are low most areas this time of year. It may be possible to get such a home for under $3000 from a motivated seller. Consider what factors would motivate the park to go to such a low price or even lower… because those are the discussion points you would need to bring up to see if the park is motivated to sell the home to an investor…
If few repairs are needed… you can pay a slightly higher price, if you know for sure there are people buying homes in your area.
Brenda (OH)
Re: Only Motivated Sellers - Posted by Rick Ewens
Posted by Rick Ewens on January 11, 2010 at 16:18:21:
Steve
This purchase you made reminds me of something that Lonnis says and that is If It Is A Deal- Make The Deal -You Cant Steal I Slow Motion. Great example of how to do a deal.
Rick
Nice! - Posted by Anne_nd
Posted by Anne_nd on January 08, 2010 at 06:45:13:
Good deal Steve, thanks for sharing.
Anne
Re: Newbie needs help evaluating deal. - Posted by Ted
Posted by Ted on January 06, 2010 at 19:57:57:
Is their a reference book you would recommend that would help a newbie determine the repair costs? Also, how would I find out what dimensions sell easier in my area?