Posted by Robert McNeely on October 22, 2002 at 21:37:55:
I think you will find that flipping a MH on an option to be much more difficult than with “Real Property”. Most Real Estate investors just stay away from MH deals. If the market price is $10K to $12k, you should be paying no more than $2 to $3k for it. Then look for half your money back from a down payment, and carry a nice note for the balance of the sales price.
What would you do? - Posted by Isaac, WI
Posted by Isaac, WI on October 19, 2002 at 15:30:51:
I have a seller who seems motivated. Sadly, he just lost his father who owned a mobile home in one of the Milwaukee-area’s popular parks.
The seller and his sister are settling their father’s estate, and are looking to do so quickly.
It’s an older home from 75, but is reportedly (I haven’t looked at it yet) in very good condition. It is 54X12 with 2 BDs. The list price is 9K, but he’s already indicated that it is “very negotiable” in both price and terms.
Here’s the thing, I’ve never done a mobile home deal before. I?ve never even done a creative RE transaction either (although I?m working on 3 right now). I have, however, worked on a number of traditional deals and am fairly well versed in this market.
I have done some research (talking to park managers, and other people familiar with this market). They claim the market value of the MH is $10 ? 12K. I understand that more due diligence is required, but want to know if this is a deal I should pursue.
How would you approach this?
I was thinking of trying to secure a 10 to 14-day option to buy for a $25 to $50 option fee (paid to seller) on a negotiated price. Then I would sell the option to an investor. Is that even done in the RE/mobile business? If so, what is a fair price to ask for the option, assuming it?s a good deal?
Re: What would you do? - Posted by Marc Donovan
Posted by Marc Donovan on October 23, 2002 at 19:54:45:
Offer the executor 2k cash. You can talk with the other heirs, but the executor is the only one authorized to deal with you. The probate judge will have to approve your purchase, but if everyone agrees it’s a good deal, you should have no problem.
Offer the cash, then wait. And wait. And wait. After the executor has to pay a few month’s lot rent, she will be calling you.