Question for Lonnie - Posted by MH Investor

Posted by David Alexander on November 02, 1998 at 22:54:30:

Mobile Home for Sale
Owner Will Finance with
reasonable down payment.

When they call:
They will ask: How much down?

YOU: Anything Reasonable, how much were you looking
to put down?

THEM: Would 500 be enough?

YOU: I think I can work with that.

THEM: How much are you asking?

YOU: The price is negotiable, what kind of payments
can you afford.

(You do have to have an idea of what your planned exit is, As in you in the home for 3000 and you think you
can sell it for 7500)

THEM: I can’t spend any more than 450\month.

(Do some fast math in your head, you know that,
lot rent is 150\month, taxes and insurance 50\month,
and that leaves 250\month or 3000\year.

YOU: I think I can work with that.(As you punch your calculator, Don’t let your mind go cha-ching yet, with
pictures of dead presidents dancing)

You enter 36N, 250 PMT, 13.3% I, compute PV.
PV = 7,388 + 500 = 7,888

YOU: If you could afford to pay me off in 3 years,
I could sell this home to you 7,888, does that sound fair? (Silence)

THEM: What would my payments be?

YOU: If you could put down the 500 today,
your payments would be 250\month for 3 years.
Of course you would have to handle the lot rent
and taxes and insurance yourself.

As you shake hands, and collect a check.
(wait till you get in your car, to scream)

David Alexander

Question for Lonnie - Posted by MH Investor

Posted by MH Investor on November 02, 1998 at 20:06:44:

Finished reading Lonnie’s Book and a recent “How to Article” and getting ready for a first deal. I am only confused about two things:

  1. Which portion of the price should I state in the ad and when prospective buyers call: should that be the Total Price and the rest is “negotiable as long as it is reasonable” or otherwise?

  2. Should I register MH in my name after I purchase it and before I sell it?

Thanks for all responses in advance.

Re: Answer to your 2nd ? - see DOW book - Posted by SRH (CA)

Posted by SRH (CA) on November 03, 1998 at 01:38:35:

Hello! Fello newbie here. I just finished reading Deals on Wheels too. The book answers your 2nd question. Lonnie states that he usually puts the title in the purchaser’s name with his name as a lienholder, then holds on to it. As soon as it is paid in full, he signs off on it, and gives the title to the purchaser. If they default, he simply pays to change the title again.

I don’t remember which section, but it is in the book.

Good luck!

Re: Question for Lonnie - Posted by phil fernandez

Posted by phil fernandez on November 02, 1998 at 20:19:40:

When offering financing on the mobile, buyers usually only want to know two things. How much down and how much a month. They don’t really care as much about the actual purchase price.

Example : Nice older mobile home. $995 down and $225 per month.