Posted by Steve-WA on July 31, 2003 at 14:02:56:
I have a government job!
(— for now —)
Posted by Steve-WA on July 31, 2003 at 14:02:56:
I have a government job!
(— for now —)
23 years old and scared to get feet wet - Posted by Jeremiah Blue
Posted by Jeremiah Blue on July 31, 2003 at 01:46:15:
Hello everyone. Im just glad to have someone to talk to. I’ve had a few restless nights. My whole family thinks I’m crazy…and maybe they are right! My wife and I are thinking about purchasing a 1978 14 x 70 ridgewood (any info would be great) for $3000. It is in an o.k. park. The space rent is $285 a month which is about average in this area. The woman who is selling it, moved out and to an apt after her husband died. She started out asking $7,600 but after months of no sale and having to continue to pay space rent she is burned out. There are many other mobiles for sale in the park all with the “new carpet, vinyl flooring, and paint treatment” selling for between $7000-$9000.
The neighbor said that there have been homes sitting around there for over 6 months and nobody is buying them—all for about the same price I want to charge for mine in the end. But I want to fiance and none of the others are offering it…Is that enought to set my trailer apart from all the others and make it easier to sell?? The trailer is 2 bed, 1 bath, has a heat pump, new carpet in bed rooms, and new vinyl in the bath. I am planning on carpeting, and painting the rest, possibly new windows!
Here is where my questions begin. Feel free to answer them all or none…but please wish me good luck!! I’m stressing out! Not a big investment to most…but its my first one and it took me along time to save this $4,500.
How important is it to offer financing?
What if I can’t sell it?
“It is in an o.k. park” - Posted by Ron_KS
Posted by Ron_KS on August 01, 2003 at 11:25:43:
Read your post and, as you can see from my “subject” line, I have a question.
Line 4 of your post you say, “It is in an o.k. park”. Are you saying that the park is “okay”, i.e., not the best in town, but acceptable, or are you saying it is “okay to operate in this particular park”?
If you have permission from the park management to operate then follow the advice of some of those that have answered you, however, if you are saying the park is “just okay” you better check with the manager to see if you can operate in the park.
Best of luck,
good hard advice - Posted by Phil Pelletier
Posted by Phil Pelletier on July 31, 2003 at 20:01:45:
Most any two bed, one bath home should be bought for around $1,000- $2,000 or less. I offered a lady $1,000 for a nice 2 bed 2 bath in excellent shape. She wanted $6,000. She laughed. She ended up giving the home away after paying ground rent for about 4 months (I travel and she could not get a hold of me before $400 rent payment was due). She would have been very smart to sell that home to me for $1,000, 4 months ago.
What I would do is make the sellers an offer of $1,000 tomorrow, and say you will pay the rent for August, so the offer is actually about $1,300. If they are smart and reasonible, they will realize they have a liability and not an asset, and they will sell. Just remember to budget some money for rent during the selling process. It is a lot tougher to find qualified people in my area than I ever thought. Average search time is about 3 months and taking over 100 calls per home. Not easy, but profitable.
What Steve said and… - Posted by Philip
Posted by Philip on July 31, 2003 at 15:34:27:
Steve said to negotiate down, and so did Ten. Bob and they are right.
Or walk away if you don’t want to be squeezed that tight.
THERE WILL BE OTHER DEALS.
Can you lower your rehab costs, and still sell at the same price? Can you negotiate down?
I sold a home for 11,400.00 that had a book value of 8k, and NO takers at 6k cash…so the financing end IS very important and will help.
Lower your risk by lowering your investment.
Re: 23 years old and scared to get feet wet - Posted by joew
Posted by joew on July 31, 2003 at 13:52:57:
My first suggestion is: GET SOME BALLS
You are like every other sniveling whining kid out there …wants guarantees, Bud there is no guarantee in life… if you can’t tke the stress get a government job and put your money in the bank
Re: 23 years old and scared to get feet wet - Posted by Mr. C
Posted by Mr. C on July 31, 2003 at 11:26:05:
You can do one of two things…
Nothing… and be no better off tomorrow than you are today.
Spend $30 on DOW and have the knowledge to get into this business in an intelligent manner.
The only person that’s stopping you, is you.
buck up - Posted by Steve-WA
Posted by Steve-WA on July 31, 2003 at 09:44:05:
In your position, there’s a couple of things that will make or break:
Why are others not selling? (been said)
Talk to PM - get them on board (been said)
Is this a 55+ park?
As written in DOW, the animal that inhabits the 55+ park is different - just a word, no intent to offend.
If everything is OK, then I would say, yeah, financing is the difference between selling and not.
Do you have a house to live in? If so, then you do not need this MH. The emphasis is to hammer in that you do not want to become a motivated buyer.
Your seller is motivated - she has more than halved her price. I concur with TBob - ask the important question - “If I could bring you a big sack of green cash money today . . . TODAY . . . , what would be your bottom price?”
Then shut up. Let her talk. At the number, flinch if it is more than you are confident with, and tell her you cannot, especially in the face of lot rent with a long for-sale time imminent.
JB, you seem kind of nervous about $3K; rightfully so - it’s 75% of all you got! So don’t pay 3K. What number would work for you, would let you breathe a little easier? 2K? 1K? $500? Work it to there.
you have a place to live. There are manymanymany more deals.
Buck up, and do not listen to the naysayers.
Dude you really need to spend the 30 bucks. All of this - and more - is in there.
Power to ya!
Re: 23 years old and scared to get feet wet - Posted by Ken Leatherman
Posted by Ken Leatherman on July 31, 2003 at 08:52:19:
Boy do I know how you feel. I’m a lot older than you and new to this game.
Get the book Deals On Wheels on this site for $30.00.
You can’t lose as you have 60 day money back guarantee. Follow it step by step. IT DOES WORK.
My 1st thought is why are so many MH’s for sale in this park? Go knock on some of the doors find out why
people or selling. May not be a big factor but could be.
Next: Run a test of the buyer market: Go to page 42 of DOW. Lonnie tells you EXACTLY WHAT TO DO. BITE THE BULLET AND JUST DO IT. You can use your local shopper, penny saver, items for sale and many other cheap sources for the ad. Or use your daily paper with a short inexpensive ad. WORD IT THE WAY LONNIE RECOMMENDS.
How about try and get the lady to do a joint venture with you. Offer her $1500 to buy into her equity and get you on the title. Work out a payment schedule from you to her where she gets monthly income plus interest for her say over 6 mos/12mos/18mos. This way she get out from under the lot rent, has money coming in every month until pricipal/interest paid in full.
You sell home for your price-set up note to get $750 cash down (or whatever)(You have reduced your cash lay out on purchase to $750). Given yourself time to gain experience needed. This is just a little varience on Chapter 17.
As I read your note I could see page after page of DOW as written by Lonnie. If you have read this book
you will know what he says about listening to Family, friends and all other nay sayers (Which is what I have done for last 40 years). My wife and I are concerned about stepping out into a new financial adventure. We are not discussing this with our children, in-laws/out-laws : > ). This is our money,
our lives. Frankly we are close to being broke. We believe this is going to be the only way we can have
added income over the next 20 years. (If we live that long) : > )
I have just structed our 1st deal as laid out above.
It means I will be able to move onto my 2nd one much
quicker. You and Mrs Blue are in a good position to
move forward. You have already taken your lst step in
that you have the discipline to save money. (Way to go) You have taken 2nd step in finding MH deal. Now
don’t let the naysayers tell you what to do.
Remember as Lonnie says Evaluate and if it is GOOD ENOUGH DO IT.
Barb and I would like to wish you the best in whatever decision you make. We will lift you up in our prayers.
Barb and Ken
P.S. Remember HAVE SOME FUN : > )
my advice (long) - Posted by Philip
Posted by Philip on July 31, 2003 at 07:55:52:
I have only done a few deals but I do know one thing that you need to do.
Have you found out if the park manager or owner is ok with your deal? Will they really let you deal there? Will they ok any buyers for you? Are they buying these older models themselves?
Next, I want to agree with Tennessee Bob…this seller may be VERY open to letting you buy on terms or for much less.
Yes, it is very important to offer financing…BUT FIND OUT WHY THOSE OTHER HOMES AREN’T SELLING. Is it JUST the lack of financing, or some other problem in the park?
IF everything is cool with the park, then you will be able to sell, but you may have to sell for less than you would like to do it quickly.
You will have to determine space rent compared to other parks in your area.
I have not ever touched the mobiles I have bought and sold, as far as rehabbing them. I would think that you would need to do LESS fix up, but make sure it is the RIGHT fix up. Cheap fixes that increase eye appeal.
As far as financing, have you read DOW? Do you have a more knowledeable person who could help explain it? A bank loan officer(for the general idea, not EXPERT advice in this particular area)
I would run ads in a big paper, that is what worked for me.
DON’T feel negative…but be realistic. Try to detach your emotions.
And lastly…think about it again when it is a good morning…not a late night! All my posts that were mean, stupid, negative, stupid, nonsense, or …uh…in my case…stupid…happened when it was late! You will be more POSITIVE when you are rested…and way less emotionally drained.
IF this isn’t doable…walk away! This site and DOW’s have stopped me from doing 2 deals that would have been troublesome. “Some of the best deals are the ones you never make”.
Re: 23 years old and scared to get feet wet - Posted by Tennessee Bob
Posted by Tennessee Bob on July 31, 2003 at 07:30:58:
You stated the seller is “Burned out” paying lot rent. You may have a couple of options here.
#1. Have you asked the question "What is your price if I give you cash tody? (Remember, you are helping her cut her losses on lot rent.)
#2. If she wants out of paying lot rent, she just may take payments on her sales price. (say $2000 over 12 months @ 0% interest) this will get her out of paying lot rent and limit your cash exposier.
Remember to talk to the park manager to get his/her OK and to check for back lot rent and taxes.
Good luck & GOD Bless,
Re: 23 years old and scared to get feet wet - Posted by Rick (OH)
Posted by Rick (OH) on July 31, 2003 at 06:49:28:
First let me say, It Works!I am new to this also. I received my copy of ‘Deals on wheels’ on June 11, 2003 (if you don’t have this book get it, the $30 will come back on your first deal), bought my first MH June 20, 2003(a 1985, 14 x 70, 4 bdrm/2 bath for $3000). Owner’s moved and we closed on July 11. On July 18th I put a ‘Handyman Special - Will Finance’ sign in the window and it sold on July 23rd. They wanted me to fix it up and it will cost me about $3500. I have a total investment of $6500. I sold it for $13,400 with $1000 down and $250 a month for 72 months. The new owners take possession on August 27 just about the time I will have it fixed up.
This deal is a little higher than the standard ‘Lonnie deal’ talked about in ‘Deals on Wheels’, but I like the idea of a $250 payment coming in every month.
Good Luck, Rick
Re: 23 years old and scared to get feet wet - Posted by Neil
Posted by Neil on July 31, 2003 at 02:54:34:
I am very new to this as well, so please research what I say,
but I think they way to keep yourself safe and mantain a sale,
is to offer financing that is doable.
Look into the other proerties.
If they are sittin for months due to the onwer vacating, and waiting for an all cash buyer, then that isnt likely to happen.
Like you said, it took a long time to save 4500,
so offer financing stretched over time at
(From what I read) around 12%
They key seems to be “HELPING” others while helping yourself.
Make it easy for them to get the place
Please let me know if this helps/works cuz I am going to start looking to invest into Mobil while I do other proerties
hold on a second - Posted by chris ny
Posted by chris ny on July 31, 2003 at 19:38:10:
“…every other sniveling whining kid out there”??? i hate when grouchy old people who are stuck in the good 'ol days stereotype all young people that way
real helpful! - Posted by Jeff Ward
Posted by Jeff Ward on July 31, 2003 at 17:15:01:
Lighten up. The purpose of this forum is to help others, not put them down with insensitive, non productive comments like yours. I don’t see where asking others for their opinions as well as positive reinforcements is the same as asking for a guarantee. Please keep the comments constructive so we all may benefit.
Jeremiah, I have only done 4 deals so far but I am experienced enough to know already that there is tremendous potential here. Regarding your deal, follow the other great advice, starting with buying and reading Deals on Wheels. It covers everything. Talk to that park manager. They can feed you all the deals you ever want when you find a good one, but a bad one will never approve your buyers, then you become the motivated seller! My first inclination is that 3k is still a bit too much, I just bought a 1974 Granville 14x70 in GA for 2k, in very decent shape with central heat & air. Like Phillip, I have never put any money in repairs, just advertise for a handyman and give a little better deal. This really works!
Best of luck, we are all hoping for you success!
Wow! You must really be tough! - Posted by Philip
Posted by Philip on July 31, 2003 at 15:20:22:
Why don’t you get some manners?
He didn’t deserve that.
I hope you are under 30, cause then I would understand why you were a Punk.
Have you ever been undecided about anything?
If not, then you aren’t thinking about what you are doing.
You are, however, very decisive on criticizing folks.
And hey! Steve has a government job!