Re: A few questions about “free” homes - Posted by Ray (MO)
Posted by Ray (MO) on July 18, 2005 at 15:43:07:
Could be rentable? Read DOW first. You have to know your numbers. With the limited info you gave, it sounds like a good deal for the owner of the park, not you. What will they rent for? What would they sell for? Will the owner let you do a Lonnie Deal or is he setting you up to fix the places up then take them back from you when you can’t unload them.
You work for the guy so you know him. Why is he pressuring you into a 3 mo contract. If you take one, fix it and sell/rent it in the first month doesn’t he still get paid? Isn’t it lot rent he is after? Then do the next one.
A typical free deal for me would be, I get title to the home, I will pay lot rent for the months I am rehabing. I will then sell the home and the buyer will take over lot rent. In many cases the PM is desperate to have someone rehab the home so free lot rent or reduced lot rent is negotiated. Otherwise the home will be pulled and the lot will be empty…read NO LOT RENT.
You are a motivated buyer. Don’t be. You don’t have to take these problems off his hands. Negotiate a better deal.