Posted by Chuck (AZ) on July 16, 2001 at 20:09:01:
Nope… sounds right to me. I will give you one piece of advise tho.
The 55+ market likes to pay cash, so don’t be dead set on doing this in a “Lonnie-deal”… it’s more likely to be a quick flip.
Go with it.
Now the nervousness sets in… - Posted by Mark (OR)
Posted by Mark (OR) on July 16, 2001 at 19:48:36:
Today I went out to make my first offer on a MH. It is a 12 x 56 built in ‘73. In a nice 55+ park. Has a storage area about 10x20’. Comes with Refer, 20" Range, AC and new carpet. There is some water damage by the toilet. (I know how to fix that) also needs the steps fixxed, I even went through a step. Park rent is $200/month includes water and trash. 2 bed 1 bath. Owner hasn’t lived in it for about a year according to the asst. PM but rent is still paid up.
Seller wanted $4900 then dropped it to $3000. I offered $2650.
Everything was going ok, after I left him to think about my offer is when all of the sudden it hit me, the nervousness. Does this sound like a good buy? Did I forget any other information?
Thanks for the great site. Mark
If you weren’t nervous… - Posted by RobertR CO
Posted by RobertR CO on July 18, 2001 at 22:59:17:
we would wonder about you. Go for it. You learn by doing. Let us know how it goes. And Tony, thanks for the reminder to focus on motivated sellers, not homes.
Cordially,
Robert
Re: Now the nervousness sets in… - Posted by Tony-VA
Posted by Tony-VA on July 17, 2001 at 11:17:45:
You mention a lot about the house but remember, we are not looking for homes, we are looking for motivated sellers. What is the sellers motivation for selling? How long have they been trying to sell? What has kept them from selling at their asking price? Are they willing to do the repairs before selling? How much are they going to take off the price if you do the repairs (let them know you may have to pay someone to make the repairs so it will cost you more). How fast do they need cash?
Is the park willing to let you play ball there?
Try not to get into the habit of ‘making an offer’. Stick to Lonnie’s negotiating techniques. He has come to them after years of trial and error. Use this to your advantage.
Making an offer may actually cost you money. Now they know what you will pay so they can shop around for a better price and hold out on you. You may have said a number that was higher than they would have accepted had you used negotiating techniques. You started out well but may have caved in the end. Remember, anyone can name a low ball number, the fine art comes when you learn to get them to name the low ball number for you. Then they are happy to get the number, they feel like they negotiated well and got what they wanted. Most always, a true motivated seller will suprise you. If they don’t they may not be a motivated seller. As investors, we waste our times dealing with anyone but a motivated seller.
Once you have purchased that home at a surpising low price and you have a good idea on how much your market will pay per month, the nervs will subside and the game will have begun!
Best Wishes,
Tony Colella