Possible deal - Posted by Donna in AZ

Posted by Donna in AZ on April 21, 2007 at 09:38:15:

What a story - thank you for sharing it. I’m pretty green so am probably easy to play at this point.

I’ll stick with private sellers (and PM’s) at this point while I’m still learning. I would not enjoy going through what you shared.

The questions you asked made me think ‘if the park already has a handyman, why doesn’t the salesman tell the park to buy it and use their handyman and resell it if there’s so much profit there?’

Then there’s the 55+ issue of snowbirds leaving. When I mentioned that to him, his response was that most of the people there still need to work, so it’s not so much snowbirds. I’m not sure I buy that, especially after input from others in my market about 55+ parks and timing.

I’ve got to remember to not be a motivated buyer so I can look at these deals objectively. So much to learn, I just want to be wise about it.

Thank you so much for your input -
Donna in AZ

Possible deal - Posted by Donna in AZ

Posted by Donna in AZ on April 20, 2007 at 14:59:35:

This is a possible deal I’d love input on.

Sales Rep for park (I met him back in December) called me last month about this one - I called him back yesterday. Park doesn’t do anything with used homes, just new ones. They are looking for someone to help them out on this one.

Home: 1972 DW 24 x 44 2 bd 2 bth. Is 55+ park, but most residents are year round people who still need to work (park located centrally so close to bus and freeways). Home needs carpet, paint, floor, and general sprucing up.

Situation: Family moved mom out, and just want to be done with it. Originally wanted $4500, now down to $3000 (pretty sure could negotiate $2K, maybe even $1K).

Sales Rep mentioned handyman that works in the park and does side work on weekends. Sales Rep will talk to handyman and have him take a look at the home and call me with an estimate of what he’d charge to do the work. I’m a bit crippled here because I don’t have a handyman yet.

I asked Sales Rep about free lot rent while home being refurbished and he said we could certainly work something out.

Another similar home for sale (all spruced up) for $29,900 cash by owner (not offering financing). Sales Rep said it would probably sell for close to that - I’m guessing closer to $20K.

For a guesstimate - $2K to buy and $4K to rehab. Sell for $20K on a note with $3K down and $354 a month for 48 months with my money back in 9 months, then 39 months of straight profit.

What am I overlooking? Should I be wary of the handyman that works in the park? Should I run a test ad to see what kind of response I get? All input is appreciated.

I’m thinking if this one works out well the Sales Rep will call me next time they have one of these too.

Donna in AZ

Re: Possible deal - Posted by Kevin - WA

Posted by Kevin - WA on April 21, 2007 at 12:20:46:


Is this a zero percent interest deal? If so, I think you are leaving money on the table.


Re: Possible deal - Posted by Mr. H (IN)

Posted by Mr. H (IN) on April 21, 2007 at 08:55:35:

Be careful of park salespeople. Not saying that this guy is no good but I had an unpleasant experience with a park salesman.

We had agreed to pay him a referral fee of up to $500 for a buyer. Every buyer he sent me (all 3 of them) was never serious about buying ? complete waste of my time. By the way, this park sells and rents new homes.

This sales person was very good at promoting every POC in the community to me at a ?great? price. I mean real junk. Even free, these things would be money losers. Hundreds to over $1000 back taxes due, roofs leaking, no appliances, complete bathroom rebuilds, walls destroyed, on and on and on. And that?s a short list for each and every home. Anyway, I digress.

I began to get suspicious as to why I got very little calls on my home. I was thinking that people would walk into the office, ask him about my home, and he would steer them right into one of his new homes after qualifying them. The three that didn?t qualify were dejectedly sent my way. Well, you can imagine how they would feel after looking at the brand new, beautiful homes and then being shown my less than perfect home.

To prove my suspicions, my last potential buyer in this park (I have since moved the home) went to the park office to qualify for lot rent. I explained my suspicions and told her that we preferred to accompany our buyers to the office. She insisted that would not be a problem and wouldn?t be swayed by a slick salesperson. She visited the park office the next morning and then contacted me to confirm my suspicions. He was working her hard into a new home even though she told him that she was interested in my home. Needless to say, she didn?t buy my home and I don?t know if she ever bought a home in that park.

On another note, the new park I moved the home into has a part time sales person. Just so happens that when I sent a potential buyer into the office with a lot rent app (due to my JOB, I couldn?t be there with her), that salesperson happened to be there and began working my buyer. One of the workers in the office notified me of this. The buyer didn?t qualify so no harm done (but the red flag raised has painted the landscape). That?s the last time one of my buyers enters that office alone.

Here?s what I gather from my limited experience. Always keep in my mind that these are sales people. They work for the community. Their job is to sell new homes for their employer. If they don?t move homes, they get moved out of the door. They can help you in some ways and harm you in others. The guy you?re dealing with may be extremely helpful with you buying and fixing up this doublewide. He may then be an immovable roadblock when it comes to selling. His commission structure with the park may be greater than anything you could afford to pay him for a qualified buyer.

Maybe I?m over-reacting because of my newfound, complete distrust of every park salesperson, but ask yourself some questions:

How big is this park?

Can the park fit a buyer into a new home at $354/month? In other words, can they make a deal on a larger 2006 or 2007 model that, with lot rent, will beat your buyer?s total monthly expense for a 1972?

I don?t know your market (I barely know my own) but how difficult will it be to sell a 35-year-old small DDW home in a 55+ park?

You spoke with this guy in December and for the last four months, he has not been aware of any deal worthy of calling you?

On the other hand, this salesperson may be your best asset on all sides of your deal and you could have a successful business relationship with him. My initial read on the first parks? salesperson was just that. I thought we could do several deals working together and each benefit. Looking back, it?s no wonder I heard the song ?Leila? running through my head every time I walked into that office. He was playing me ? as well as Clapton plays a guitar.