Posted by Chuck (AZ) on July 13, 2001 at 11:19:26:
If they do say no, give them your card/contact info, tell them to call you in 3 months, and head for the car.
I’d bet that you leave there with a deal in hand and maybe for even less money involved, if you work it right… let THEM sell you the home.
Possible deal ? - Posted by Robert(NC)
Posted by Robert(NC) on July 12, 2001 at 12:45:14:
This doesn’t look like a Lonnie deal, but maybe someone doing business here in NC, might be able to help the seller.
1985 Champion 14X70, 2bed, 2bath, recently completly redone. Very Good condition. Has to be moved…
Owner has loan of about 6k Left, but willing to take 5K and pay the difference to get title and to get out of the MObile. Mobile is unoccupied. Mobile sits behind house, thus has to be moved.
As a first deal, I’m walking from this, but though someone here might have some ideas that can help the seller get out from under the Note… She is selling, moving and going back to School…
any ideas ?
Thanks.
Robert
Re: Possible deal ? - Posted by Chuck (AZ)
Posted by Chuck (AZ) on July 13, 2001 at 05:19:46:
Normally I wouldn’t suggest that you get involved with this one, as the loan balance is equal to the homes retail value, more or less. But, I’m gonna assume that you’ve got $5k in cash and want to do this deal… even tho it looks thin on the surface.
Here’s what you do.
Figure out WHERE the home is going to… i.e. what mobile home park. If you owned it where would you put it? Make the arrangements, pending purchase of the home.
Price out what it will cost to move it and set-it up again. Get a on-site inspection from the mover. Since it’s sitting behind a house, there may be problems getting it out… and that of course will affect the cost.
Now go to the seller and tell them it’ll cost $xxx.xx to move the home, and if they will pay that AND the first month’s lot rent, you’ll buy it for $5k. They’ll also have to cover the differance to clear the title (you said it was about $6k).
Assuming they bite on this (they’d be foolish not to, if they REALLY want out of it), you’ve got the home moved and set-up in a park at no cost to you, with 30 days until the lot rent is due.
Run the following ad…
14x70, 2 bed/2 bath, recently remodeled, $500 down and $218/mo. xxx-xxxx
Ok, so now your re-selling the home for $7k with $500 down ($6,500 balance) at 12.75% for 36 months of $218 each. The total interest earned on this note will be $1,356.
So here’s your score…
$3,356 profit
32.17% yield
Is that “good enough”?
Re: Possible deal ? - Posted by Doris - Va.
Posted by Doris - Va. on July 12, 2001 at 19:16:05:
If this were a 90’s home, it would be worth moving to a nearby park - setting it up and reselling.
80’s homes are getting “old” but condition does count. Normally you do not buy homes that have to be moved but I know an invester that does it all al time.
It costs him about $800 to move one PLUS blocking, skirting, hookups and steps. He only buys when he knows he has a lot available to put it on.
It works for him but you have to buy right. By that I mean low low prices. You have to learn the market and know what the home will sell for. Figuring all your costs in will tell you what you can afford to pay for the house.
You may only want to pay about $2000 or$3000 for this house. You do the numbers.
Most investors like to double their money but even a smaller profit can work out to a big yield on your money.
Good luck.
Doris
Re: Possible deal ? - Posted by Robert (N)
Posted by Robert (N) on July 12, 2001 at 19:38:32:
Doris,
thanks… I know this is NOT a deal I want to be my first deal. Maybe someone local can come through and help her with a lease/option or other way.
Oh and thanks for the advice… I"m getting local papers now and looking for ‘motivated sellers’ and ads that have ran more than 1 or 2 weeks…
Starting to look for my first deal. Real low price deal since I don’t have much money to get started… but if I can just do that ‘first deal’ to gain a little experience…
Have a great evening…
Robert
Re: Possible deal ? - Posted by Doris -Va.
Posted by Doris -Va. on July 13, 2001 at 07:47:12:
I like Chuck’s idea. If they want it out of there badly enough, they will do it. Worst is they say “No”. I would give it a try.
Doris