1st Deal! Is it REALLY this easy?!?! (long) - Posted by Max (CO)
Posted by Max (CO) on April 21, 2002 at 17:59:10:
The MH: '73 14x60, old leak damage but sealed and secure. Celing has warped a bit from the leakage. Bathroom is an ugly caulking mess (caulk was laid on thick around new vinal shower stall and turned orange). The lady, her sister and two kids want to move to midwest ASAP. They owe $2500 on the home and need to get cash to move. Hope to get it for $2500-3000.
I put an add in the paper that just came out today (Sun) and have had FOUR calls already! Two “nice young couples” with small kids ready to head out on their own and not live with family anymore. One more “Nice couple” with no kids. I’ve been talking about getting $6000-8000 depending on down and monthly payments.
Problems: 1) I’ve never done this before…do I have everything I need? 2) I can’t get a hold of the park manager. Left messages since Thursday and no go. Do not know who he is and IF he will let me deal in this park. I do know he just split with his wife. 3) I don’t know who to choose to go into my home. How can you figure out which people are most likely to keep up payments and not be a problem? 4) For a first deal, should I try and go with the one with the most down and highest payments because that will get me my $$$ back quicker to use for more deals? 5) Is it really this easy? What sledgehammer am I missing?
Paperwork and things to do that seem necessary. Please correct or add on:
-Mobile Home Purchase agreement (Essentially from DOW)
I’m going to offer this lady $2000 cash that I can get to her next week. Willing to go up to $3000. but might as well start low and see. Will offer $100 promise money if she signs contract and shows me title.
-MH sales agreement for my seller (Again from DOW).
-Get credit report from PM (After finally meeting the PM) with signed consent form from buyer. BTW…What is a good/bad credit score?
-Promissory note (Again from DOW). Copy for me with “ORIGINAL” stamp on it and copy for buyer with “COPY” on it.
-Smoke setector verification
-Make sure buyer gets insurance. Where do they go? I know it’s harder to get insurance on older homes.
-Make sure I get the title when I hand the seller the money.
Can some one check these numbers and see if I’m using my new financial calculator correctly (Actualy asking and not being too facicious).
Buy for $3000
Sell for $6000 with $750 down and $225/mo payments at 12.75% interest. That translates to 26 months or 2yrs, 2 months.
After $1000 DWN I have $2,080 in the MH after paper ad and buying the calculator. I show my yield to be 118.61%! If that’s right that’s, “Good enough”! Am I right?
Sorry for the long post but I really do have some 1st deal jitters and it’s helpful to get it all down on the screen. Any advice would be GREATLY appreciated. My fiance was really unsure about it but after seeing the numbers and figuring that all three parties in the deal are getting what they want she’s thinking it’s pretty cool. Thanks in advance for your help!