Ad to buy used MH - Posted by Randy, OH

Posted by Steve W (WA) on February 12, 2002 at 07:45:13:

The motto of the biz:
You are not looking for homes, you are looking for motivated sellers.

$7000 for a '79? Not motivated.
Won’t sell to a reseller? Not motivated.
Ad running since December, but willing to keep doing it? Not motivated (yet!).

Motivated sellers are more often than not found by word of mouth - PMs, neighbors out washing their cars, mobile home movers, etc. If a motivated seller gets his ad out, you’ve gotta recognize them for what they are and “Show ‘dem da’ munny!” right away. As far as ad flags, you know how it goes: Must Sell! Moving! Divorce forces sale! etc.
Running a close second is that we do what the motivated seller wants, and few others can do - buy for cash (even though it ain’t much cash!)

When you can snatch the title from my hand, and pay me not what you say you will pay me, but what I say you will pay me and it is what you want to pay me (or less), then you are ready, Grasshoppah . . .

Waxing philosophically, somewhat -

Ad to buy used MH - Posted by Randy, OH

Posted by Randy, OH on February 10, 2002 at 17:55:35:

Just getting started in this and would like to get some advice from the experts here. I ran the following ad under MH for sale:

Wanted to buy used MH on rented lot, cash.

I have had 5 or 6 calls and most of them are not interested in selling to someone who is going to resell the MH. Is this typical? Is it just a numbers game to find the motivated sellers or am I doing something wrong? I am being up front about what I do. The only positive response so far is a guy who is apparently trying to do the same thing I am trying to do. The MH is sitting empty. He is trying to sell it for a “friend” who bought it for his son to live in, but the son left the area. This is a 1988 Liberty, 14 x 70, 2/2. He is asking $9,000 cash or $11,000 on terms, $500 down, $210 per month, 12.75% interest. He will wholesale it to me for $7,000 cash. The floors need some work, which he is having done. Other than that, it is supposedly in good condition. He says the PM is agreeable to letting him sell to a buyer on terms. I am wondering if there is any point in my trying to do something he has not been able to do. He has been trying to sell it for about a month. He ran an ad under MH for sale saying “rent to own” with no price or payment info. Is this worth pursuing any further? Any advice would be appreciated.

Re: Ad to buy used MH - Posted by Karl (Oh)

Posted by Karl (Oh) on February 10, 2002 at 23:08:41:

Based on what you wrote, here?s what I would do. You?ve just found a park manager who is open to Lonnie Deals. Start working that park. Go talk to the PM, perhaps tell them you might be interested in that other guy?s home if the price gets better, but are there any other homes in the park for sale? Find out how many deals this guy does, he might just have this one home. I mention that because I?ll bet you?re wondering if this guy actively works this park, and would be competition. Just because the home has been for sale for a month doesn?t mean his terms are bad. Things were slow at Christmas time, as always, they?re just starting to pick up right now with all the tax refunds. I?ve had a home for sale since last Fall, suddenly I have three different people who want to buy it.

As far as your ad, you?re saying sellers are reluctant to sell to you because they know you?re going to resell the home? What the heck do they care? That?s a new one. If they were motivated sellers, they wouldn?t care if you were planning on burning it down. Keep looking. Nothing wrong with being honest, but there?s no need to explain your business plan to sellers, especially over the phone, most of them won?t care or even understand what you?re trying to do. Just find out about the home, the park, and their motivation level. If you?re just starting out, you might as well go look at every home for sale at whatever price, it will help you learn your market, and you can practice talking to sellers.

When I first started, I ran the “I buy sell and finance used mobile homes” classic ad right out of Deals on Wheels. I got more calls from sellers than buyers, but they both called, and I just started matching them up. I’d suggest expanding your ad to get some buyers calling you, it will also be good practice. Who knows, you might find a buyer for that guy’s Liberty, and earn a referral fee, $500 is a nice round number.

You?ve probably answered this already, but where are you in Ohio?

Karl Kleiner

Re: Ad to buy used MH - Posted by Randy, OH

Posted by Randy, OH on February 11, 2002 at 11:52:35:

Thanks for the advice. I plan to start an ad like you suggest ASAP. This sounds like a great business, but I am wondering if it will work as well here in Tuscarawas County. This is a low income area with a lot of MHs, but there is still a negative attitude towards them. The feedback I have received so far has been very negative. The sellers start questioning me right away so I have to explain that I plan to resell on terms. Then they say they are not interested. That’s it. I also found out that the guy who is trying to resell to me has had an ad running since at least early December. Is it possible that Lonnie deals do not work in a low income area?
Thanks again,