Posted by Mike on February 09, 2010 at 13:34:29:
Anne - So, how do you handle title problems?
Using Apartment Rents to Gauge Sales Potential - Posted by jd
Posted by jd on November 29, 2009 at 13:27:12:
Hi all,
I am fast approaching having everything in place for my first deal, but a few issues remain–one of which I would like to ask you about:
I see MH’s pop up for sale all the time in different locations around where I live (ATL, GA), using online resources. I have little doubt that I could negotiate with these sellers to get a decent deal and spend anywhere from $2000-$4000. Once I get the property fixed up and ready for sale though, how can I get information about how well my trailer will sell? Currently I am using apartment rental rates in the area in conjunction with lot rent in order to approximate a monthly payment. This would make my home competitive with other local housing options. I can’t help but feel though that this may be a very limited way to assess the sales market.
Is there any other way I can be sure that my home will sell, short of actually placing an ad (online or bandit sign) in that area and waiting to see how many calls I get? I just want to be better informed about how long I should plan to hold the place before I get a buyer approved by the park and contracts signed.
Thanks!
Re: Using Apartment Rents to Gauge Sales Potential - Posted by Anne_nd
Posted by Anne_nd on December 03, 2009 at 05:59:32:
to be on the safe side, make sure your first deal has enough profit that you can absorb a minimum of 3 months holding costs and twice what your repair estimates are.
Right now buyers are getting loans against their tax refunds, so there’s a good chance a home will sell fast this time of year, but be conservative so your first deal is not your last.
I decided that my first few Lonnie deals would be learning experiences and I didn’t expect to make any money on them- turns out they were totally atypical deals- the very first home just paid off with the original buyer after 6 years of payments; the second home the buyer had $2.5K to put down and they paid off their loan 12 months later.
good luck,
Anne (now in GA)
PS- if you’re calling off of craigslist, I think we might have spoken.
Re: Using Apartment Rents to Gauge Sales Potential - Posted by Philip
Posted by Philip on December 01, 2009 at 09:48:49:
I am on the verge of my first Lonnie deal also. I had similar concerns but used a technique of Lonnies from his book: Run an ad in a newspaper advertising a Mobile Home for sell with owner financing. Use the words Negotiable Down payment and Reasonable Monthly Payments in your ad. When a call comes in, tell the caller the home has already sold. Then ask the caller what he / she can afford to pay down and per month. Tell the caller you are always getting homes and will call him/her when you have one they might be interested in. BTW: I am in North west Georgia, maybe we should talk and possibly work some deals together.
Re: Using Apartment Rents to Gauge Sales Potential - Posted by jd
Posted by jd on December 03, 2009 at 19:10:00:
“Be conservative” – Point taken! I have spoken with a few motivated sellers already and am trying to heed that advice and not get too excited or emotional about the deal.
Anne, is that you with the small home / big porch? I may need to call you and get your take on all these sellers that don’t have a title (just the bill of sale).
Re: Using Apartment Rents to Gauge Sales Potential - Posted by jd
Posted by jd on December 03, 2009 at 18:48:21:
Wow, I totally forgot about that. Excellent suggestion, thanks! Send me an email, will you Philip?
Re: Using Apartment Rents to Gauge Sales Potential - Posted by joe–ga
Posted by joe–ga on December 01, 2009 at 20:49:40:
exactly HOW FAR UP----- is north west ga? I am in carrollton jawja.
Re: Using Apartment Rents to Gauge Sales Potential - Posted by Anne_nd
Posted by Anne_nd on December 04, 2009 at 07:34:24:
Yep, you’ve called me often enough that I’ve got you in my phone as “mystery Lonnie dealer”.
I can tell you what to do about the title problems, as we just dealt with that. It’s a major negotiating tool to get the price down because GA does require a title, not just a bill of sale.
I can also give you some pointers on talking to park managers/owners.
Anne