Posted by EddieMI on May 02, 2003 at 14:03:21:
Ok, thanks for getting me back to the basics. I don’t really do Lonnie deals, but I want to get some vacant lots filled in my park.
I am familiar with the costs of transport and that does hurt the numbers.
Eddie
Eddie
seller pays $5800 to get rid of house - Posted by Anne_ND
Posted by Anne_ND on April 29, 2003 at 18:14:57:
Today I bought a mobile home from a seller where they had to come up with $5800 to pay off their loan to Conseco AFTER I’d contributed the purchase price. That’s right, I paid them $2700 for a house that they owed $8600 on. The best part was, they couldn’t stop thanking me after it was done. They were so glad not to have to pay lot rent and Conseco anymore.
I went right from the bank to the house where a buyer was waiting for me. I told her I’d sell it to her for $7500 and she was thrilled. I have doubts as to whether she’ll qualify with the PM, but there are more where she came from I’m sure.
Darn, this is a great business!
Anne
Re: seller pays $5800 to get rid of house - Posted by EddieMI
Posted by EddieMI on May 02, 2003 at 11:17:03:
Anne,
I am negotiating a similiar situation. Lady owes Conseco 5300 and she is willing to sell for 4500. I was hoping to get it for 3500 to 4000.
This lady is currently renting it to her nephew, who is poor on paying. Another family member is selling the land, so the home has to be moved asap. What kind of pointers can you give me here?
Re: seller pays $5800 to get rid of house - Posted by Phil Pelletier
Posted by Phil Pelletier on April 30, 2003 at 01:16:19:
Outstanding effort. Those people were smart to rid themselves of a problem that would have only gotten worse and worse each month. With your help, they realized the home was not worth anywhere near what they owed on it and they got out from under a depreciating liability. I always tell folks who are in a similar situation (most everyone I meet here in Oregon, it seems), that the home is worth to the wholesaler what the home is worth to the wholesaler. Period. If they wish to try to retail the home themselves or even hold a contract to recover their “lost” funds, they are welcome to try.
However, I usually try to help them feel better about their situation by employing an old salesman’s technique called “Reduce to the Ridiculous”. In the case of your people, they probably lived in that home at least 5 years, more in most cases, but 5 years works in this case. Their payment to Conseco combined with their ground rent payment still probably placed them well under the average monthly cost to rent a much smaller, less comfortable apartment in their area. Every apartment renter will tell you: Long term renting really sucks. However, in their mobile home, they had a yard, a private parking space, pride in their own dwelling located in a family community surrounded by people with no criminal records or eviction history. They had virtually no upfront costs when compared to a site built home and they may not have had the credit to secure a loan for one in the first place. Sum it all up, and they had a pretty good life style during their stay in the mobile home community.
Everyone knows there is no such thing as a free lunch and, because mobile homes are never to be sold as an investment, but only as affordable living, now it’s time to pay the piper. If they have to pony up $5,000 to dump the place 60 months later, they STILL had a lower monthly cost then comparable rental property.
Ask anyone who understands money this question: If you could pay an extra $100/month for your place right now, or pay $5800 in a lump sum 60 months from now (again, MUCH longer in many cases), which would you chose? The answer was written on the face of your seller. They had a good life in the home, and all it cost them was an extra $100/month with payment deferred for 5 years.
Nice job in finding them, understanding their problem and helping thme solve it so they can move on to, hopefully, a better situation.
Phil Pelletier
Nothing But Net - Posted by Tony-VA/NC
Posted by Tony-VA/NC on April 29, 2003 at 19:23:01:
Schweeet deal!
Now I would be willing to bet that not too long ago you would have thought, “I could never get someone to do a deal like that.”
Nothing to stop you now.
Congrats,
Tony
Re: seller pays $5800 to get rid of house - Posted by Anne_ND
Posted by Anne_ND on May 02, 2003 at 13:09:02:
Eddie,
If you know what you want to buy the house for, then try to get her down to that amount (using Lonnie’s negotiating methods). If she doesn’t go that far down, then walk. Maybe she’ll come back later at your price and maybe she won’t. Don’t make her need to move the house into your problem.
I haven’t moved a house so I can’t make any suggestions there except to be sure you understand what the cost to move and set up will be, then add a few hundred for contingencies.
Good luck,
ANne