Problems? - Posted by Karl (Oh)
Posted by Karl (Oh) on November 28, 2000 at 21:18:36:
Do what works for Dirk and Lee. Slap a stack of 50’s down on the kitchen table, and stare 'em straight in the eyes until they blink. If they’re motivated, they’ll pick up your money, and you have a trailer.
What can you sell either of these homes for? Do you have a good feel for what prices your market with support if you offer financing? While we all take pride in beating down a sellers price, keep the end in mind. You don’t have to beat a seller into submission just because you can. You need to get a good deal to make a good return on your investment, but you also want to develop a reputation in your park as a guy who pays fair prices, this will generate referrals in the future. On the first deal you’re asking how to squeeze another $250 out of the seller. Is this because you can’t sell the home for more than $4k with financing? Or are you just determined to get a lower price for the sake of negotiating? Get a good price, but be a fair guy with your buyers and sellers. In the mobile home marketplace that will give you a niche. If you could sell the 3br for $7k or $8k on a note (I could in my market easy), $3k isn’t a bad price to pay. Those prices your quoting don’t sound bad, but of course I don’t know your market. Where do you live?
Work with motivated sellers, of course, but if a deal looks good, do it. No need to wait for a homerun. Hit some singles and doubles. You want to get some volume going.
Don’t dismiss the idea of partnering with the owner on the 3br too quickly. If this guy works in the park, he can help refer buyers, and would be a good guy to have on your side. But if you beat this guy silly on the price, he won’t feel like helping you later. If you can work a deal where you don’t put up much or any money to control his home, it frees up money to do more deals.
As far as the buyer, wait for one with at least 10% down.
Just trying to give you some different viewpoints on your post. Good luck, let us know how these deals worked out.