Selling With Nothing Down - Posted by Adum

Posted by Tony-VA on October 29, 2001 at 13:30:48:

Sometimes you just have to do something to unload a home that is not moving. There comes a point when you reach critical mass and just need to move it.

Do whatever it takes to get a buyer in there when that happens. But don’t give away what you do not need to. Simply Ask what would make it possible for these people to buy that home. Then work with what the need. Chances are you will come out better.

Much of the problem may be marketing. “Will Finance” seems to work in good and bad economies. I find that most of our buyers are not aware of what the economy is doing. There are always labor jobs available and getting laid off is not new to some of them. They move to the next labor source. Lonnie deals tend to catch those coming down and those going up so it may be a bit soon to blame the economy for slow sales. Sales in general fluctuate for a variety of reasons.

So market, market, market. If you have to, market it as “No Money Down”.

My personal thought on no money down is this. Yes, they have a lot to come up with when you consider rent deposits, taxes, etc. but they need to put a little money on the table in order to have a chance of leaving the renter mentality. They need to convince me they are going to take this purchase seriously. Yes, they may only be able to put down a few hundred bucks on a home that I have not been able to move (do not make this low down payment a habit), but at least it something out of their pocket. You will be surprised by peoples reactions and if they want that home, they will scrape up the cash. Just let them do the talking. They are expecting to put something down. Simply ask, “How much can you afford to put down?” Make sure they are taking into account the other expenses.

I have found that people who cannot put money down now, typically won’t stay in the home long enough to make up the difference through higher or longer payments. Your mileage may vary.

Best Wishes,


Selling With Nothing Down - Posted by Adum

Posted by Adum on October 29, 2001 at 12:05:11:

I was wondering what you folks thought of this idea? I have 2 mobile homes that I’ve been unable to move. They are in the only park in a small town. With the economy the way it is now, I know people are not wanting to come out of their pocket so easily. With the potential buyer having to get insurance, turn on utilities, lot deposit, etc., a modest or even small down payment may be a problem for some good, honest hard working folks. The average income for this area is not all that great.

I was thinking of giving them the choice of a few different financing plans, with one of the choices being nothing down, but with the payments for a longer period of time or with the interest higher than if they had put down a down payment. I appreciate any feedback.


Re: Selling With Nothing Down - Posted by Dr. Craig Whisler CA

Posted by Dr. Craig Whisler CA on November 17, 2001 at 18:42:34:

Seling with bothing down is one of the best ways in the world to sell. With a few simple sprecqautions it can be done safely. For more ideas see my posting: Re: who buys mobile mome notes without land (above) at 17:31:12 on 11/17/01. If you have trouble finding it put Dr. Craig Whisler in this site’s search engine. Best of luck, doc.

Re: Selling With Nothing Down - Posted by JHyre in Ohio

Posted by JHyre in Ohio on November 02, 2001 at 06:29:58:

Nothing down people almost never work out for me. They are ususally big losers, which is why they have nothing down. The one exception has been a home in need of repair, a buyer that is well and truly able to fix it (they all SAY they are) and does in fact fix it BEFORE moving in. Otherwise, no-down buyers ALL default and ALL trash the place…desperation has forced me to be flexible, but zero down people usually cost me more than letting the place sit empty accruing lot rent.

John Hyre

Re: Selling With Nothing Down - Posted by lyal

Posted by lyal on October 30, 2001 at 13:29:06:

In this situation (been there…) my first preference is to set up a separate note for the down with monthly payments and a cosignor on the note (relative, friend, whatever but they must have decent credit).
Second is something to trade, vehicle or maybe an expensive toy.
Third is some additional collateral like a free and clear vehicle that I can file a UCC statement against or maybe real estate (long shot on the real estate).
I’ve also offered “down payment assistance”. Most people with a pulse can get financing for a mobile home if they don’t care about the interest rate (many are only interested in the monthly payment) but they can’t seem to save anything for a down payment. I tell them I’ll provide half the payment up to a certain amount (depends on the profit margin on the home) usually 1000 bucks. Their half is added to the price so their out of pocket is limited to the park security deposit and first month’s rent (no sales tax due on used mobiles in my state).

Just some ideas, Lyal

PS: Just FYI… I have also paid the entire down to make the sale…all negotiable.