Posted by Marty (MO) on July 30, 2003 at 18:13:20:
thanks!
A fine “how do you do!” - Posted by Marty (MO)
Posted by Marty (MO) on July 29, 2003 at 14:47:19:
My partner and I finally found a deal in a park we wanted to do business in- it’s close, pretty nice, and has very reasonable lot rents. We’d already introduced ourselves to the park manager, who seemed very receptive to our business. The home was an empty '88 14x70 3/1 in very good shape. 6 mos back lot rent owed. The manager felt the park owner would settle for $600 on lot rent (which runs $195/month) and would let us choose our tenants, instead of running extensive backgrounds, etc. We acquired the home for $475, then the manager says that they’ll only take $1100 for back lot rent and the owner’s, “Going to be very choosy about who moves in.” The owner refuses to negotiate with us, he relays messages through the manager. We’ve tried to negotiate future reductions in lot rent so we can collect our investment from the buyer, we’ve tried negotiating the initial back lot rent down. There’s no good faith negotiating happening. My partner wanted to burn the title in front of the manager, just to get rid of the headache. We’ve been approved to move it into another park where we’ve done business, but that’ll be $2000 (if everything goes smoothly!) and the lot rent’s $70 higher.
We’ve resigned ourselves to doing this deal in this park. The home should bring $8500, with $1000 down (if we can find the “perfect” tenant).
Anyone have another angle to approach this from?
This is our 6th deal and we felt we did everything right…
Marty
Re: A fine “how do you do!” - Posted by Philip
Posted by Philip on July 30, 2003 at 17:32:37:
Definetly know the law before you pull it…I didn’t want to get you in trouble, or encourage the breaking of a law.
BUT, if you aren’t liable…then you have a few good options.
Philip
Re: A fine “how do you do!” - Posted by Rod - Mo
Posted by Rod - Mo on July 29, 2003 at 22:28:15:
Marty,
I don’t know what part of Mo you are in, but if I remember right, they can attach a lien on the property for back rents. Just a quick look at the numbers tells me a different story, though. 12.75% Int., $200.28 for 48 Mos. is a yield of about 500% on your $575. If I crunched the numbers wrong, somebody correct me. If you want out of the deal, let me know where you are and I’ll buy your problem for the $475 you have in it.
Rod
Re: A fine “how do you do!” - Posted by Chuck-NY
Posted by Chuck-NY on July 29, 2003 at 21:59:34:
I agree with Tony…also check with an attorney and see if you as a new owner are obligated to pay the previous owners lot rent. The park may state that they may take legal actions to get possession of the MH but I think they would be out less $$ if they worked with you.
You need to know the law because there could be a serious problem if you go to move it and the park calls the sheriff because you are obligated to clear that debt.
Re: A fine “how do you do!” - Posted by Philip
Posted by Philip on July 29, 2003 at 17:34:39:
Same type of thing killed my third potential deal.
Luckily, I hadn’t made that last step and laid out the money.
Some folks are pretty good liars, though. I would love to be awarded $10.00 every time someone lies to me, or doesn’t keep their word.
I hope you pull it out, make less money, and let the park understand that they not only don’t have the back rent, they also don’t have the future rent.
Atleast not for now.
Philip
Re: A fine “how do you do!” - Posted by Tony-VA/NC
Posted by Tony-VA/NC on July 29, 2003 at 15:40:49:
Marty,
At this point, it would appear that your future in this particular park is pretty dark. I have not found it often that things turn around after having gone to this point. The PM and owner are happy to have your lot rent coming in on a vacant house and have no motivation to work with you (at least not yet).
If it were me, I would make other arrangements to cut my losses. Even Lonnie has had to do this in the past.
If you have another park that is willing to work with you, see if they have a vacant lot. Most parks will work with you on lot rent for bringing a home into their park.
Then let the bad park know that unless they are willing to go by what you originally agreed to, then you will have no choice but to move the home. They did not like having your seller owe them lot rent, but they will like it even less when they have a vacant lot with no one to pay them lot rent.
Move the home if you have to and make your money back on the next deal if you have to. Chances are, this home will still make you money in the long run. It may even be a blessing in disguise. If your new park sees that you can move homes in, you may very well become their new outlet for troubled homes and vacant lots.
Tony
ask John Hyre about this!! - Posted by Steve-WA
Posted by Steve-WA on July 29, 2003 at 16:09:31:
he has been in the same situation - and he loves to tell how he stuck it to them!