Posted by Bill OK on November 26, 1998 at 18:06:40:
WALK Too much expense.
911… need MH assistance ASAP - Posted by Dalton
Posted by Dalton on November 26, 1998 at 12:21:16:
Situation: I have a lady who is willing to sign over her MH with no money down, just take over notes of $272/mo. - lot fee of $316/mo. Less than 1 year old, 3 BR 2 BA. Current owed is $26,900.
Problem: almost $600/mo total on MH. She seems very des
perate to get rid of it. It’s been vacant 3 months. Had no luck renting before and not willing to do it again. As I stated, the balance owed is $26,900. FMV for this year model and size is approx. $20k-22k.
Question: Is this a deal that I can walk away from with no sweat or should I take advantage of the situation and take over notes and try to rent it out after moving it to a piece of land.
I have until Tuesday to make up my mind.
Thanks in advance for any advice you can give.
411… MH assistance - Posted by Bud Branstetter
Posted by Bud Branstetter on November 27, 1998 at 21:14:15:
The situation is similar to that of a car payment. For a long time the balance owed is more than the FMV. But that does not mean can not make money from the deal.
The lady had been trying to rent if for that price. Did she try selling? If you can find someone to buy owner financed you can extend the lenght of time or the interest rate. Even $50 a month for non qualifying financing could be attractive to some buyers. A L/O can give to the control. Or sell the contract without any greater payment to the new buyer for $1000 option consideration. If you can put your knowledge to work you may make a dollar. The thing you don’t want to do is make a financial commitment yourself.
Re: 911… need MH assistance ASAP - Posted by DJ
Posted by DJ on November 27, 1998 at 14:08:18:
Just because you can assume with no money down, doesn’t make it a good deal! You have to consider the fact that mobile homes usually only depreciate, and you’re already in the hole to begin with! I agree with
the other guys, if you can’t move it to a private lot,
or do something to up the value, I’d Pass! If she’s had no luck renting it, what makes you think you would?
You also have to think about the type of people you’re
dealing with! (NO Offense to Anyone!) But trailer people are a whole different breed! I’d walk!
Re: 911… need MH assistance ASAP - Posted by Randy -IL-
Posted by Randy -IL- on November 26, 1998 at 22:17:52:
Just some simple math gives me the answer I would use:
$26,900 cost - $22,000 value = $4,900 in the hole = walk away
Call me pessimistic or uncreative because I would not buy anything like this with almost a $5000 hit to my bottom line. I just can’t afford to pay payments on negative equity. There are deals out there where you can take the equity and not give it away.
Re: 911… need MH assistance ASAP - Posted by DougO(NM)
Posted by DougO(NM) on November 26, 1998 at 17:29:54:
IF you already have a piece of land you own to move it to, it will cost you at least $1-2,000 by the time you are done. If you have to buy land, it’s probably not worth it unless the land is very cheap. Somehow if park rent is north of $300, I doubt land is very cheap. I have done the same thing, but at values much lower. The key is the rental market. What would it rent for ? If you can get it rented and keep it rented, then the $ you have to spend to move it is your initial investment and someone else pays off the mortgage note. Of course you’ll need to make the payments if it’s not rented. A balance of $27K @ $272 a month will take along time to pay back, unless as i said you already own the land and the amount of rent can justify a bigger payment. Not much to work with, unless maybe you can get her to pay YOU a few thousand bucks !