Posted by RT in CA on January 10, 2002 at 18:30:03:
You never said if you buy it to resell or you will use it for yourself. You never mentioned what the fair market price of the home is. However, it shouldn’t really matter that much in the end.
The question you should ask first is - How much can I sell it for? It doesn’t matter how much he owes because many people owe more than the property is worth. If you can sell it for, say, $10,000, offer him half of that. If the trailer can be sold for $25,000, you still offer half of that to him.
Your friend will have trouble selling at $25,000 because home of that age usually can’t get a loan from financial institution. If he is willing to go your price, you can get a private loan and have the home as collateral and then resell the home at a slightly higher price.
To go for your price, your friend will have to come up with the money else where to pay off the loan. That’s not your problem. Or you think it is?
It seems like you worry about not getting money to pay him. I think you really should think once you are in the home, how can you make money out of it BEFORE you purchase it.
A co-worker has a trailer he states that it is in mint condition. The trailer is 20 years old. He states that if I give him the monies to pay off the load it is mine. He is going through a divorce. He owns 25,000.00 and he states the location is in a gated community with a major mall 15 minutes away and everything else is close by. The problem is I HAVE NO MONEY. What would be the best thing to do?
Re: What to Do with this Trailer - Posted by GerryH VA
Posted by GerryH VA on January 10, 2002 at 21:58:21:
We just had a posting from a Canadian who also qouted unbelievable prices for old mobile homes. Are you in Canada as well? A 1980 home in any park in my area I would not pay more than $5,000.
The above is not really the point just observations. The point is do not pay retail for anything. If you are going to use it as an investment, you need to pay wholesale. If the price you qouted is retail, then offer less. Make sure you buy right first before ever worrying about where the cash will come from. For most people, it is easier to get hold of cash then to buy MHs at wholesale prices.
A hint… usually when people say “assume the loan” or “pay off my loan, and you can have it” usually translates to “I am upside down on this and any relief would be appreciated.” Otherwise he would try to sell it on the retail market and get his equity back. May not be case here due to divorce situation.