Posted by Todd (AZ) on April 19, 2006 at 23:39:31:
Hi Dario, I’m sure other’s will post but I just wanted to mention that, in case you have not done so yet, your “Step 1” should be BEFORE you buy this home! Do not buy it without first talking to PM. Also, ask PM about any back lot rent owed. A smaller issue to check would be, at least in my state, the assessors office for back taxes owed. It all sounds like a lot but its really not so bad. Good luck. Todd (AZ)
advice for 1st deal! - Posted by dario
Posted by dario on April 19, 2006 at 22:38:44:
After 2 weeks of having finished both Lonnie’s books and 4 days of driving around some near by parks with my wife and baby girl, we found a mh we might buy. Rather than going on about the details of the home and offers and counter offers, I wanted to to see if I can get some advice from the experts. I have never done a deal yet and I want to make sure all the “legal” aspects of the deal are taken care of.
What should be my first step once the home is mine? I have a prospective buyer already and the numbers I put together seem “good enough.” I will go over what I think should be the steps and if I am wrong in any of them I would really appreciate everyone’s input.
Step 1: talk to the PM make sure the home can stay and I can do a “lonnie” type deal in his park.
step 2: tell the new buyer that besides the down payment ($700) I will need him to get fire insurance? How much is average?
step 3: he has to pay a certain per cent tax (I live in North Carolina. does anyone know what it is?) for the value of the home (selling for $7,200) plus whatever the DMV says the transfer of title fee is.
Step 4: The buyer will have to pay 1st month lot rent plus 1 month security deposit?
step 5: I’m not sure about checking the elctrical stuff to make sure it’s working, other things I need to make sure are ok and the like…
From what I calculate, he will ahve to come up with somewhere in the neighborhood of $1,500-$1,700. This is a long way from when I told him $700 down $225/month! Is this how it usually works? Is this kind of far fetched or just the way it is? Please, any advice on the steps I mentioned, whether right or wrong and any and all input is welcome!
Thanks,
Dario
Re: advice for 1st deal! - Posted by RobertB(CO)
Posted by RobertB(CO) on April 20, 2006 at 18:20:07:
In Colorado, I can prorate the taxes for the year. Sometimes I have rolled the amount into the Loan for the first year. Under $200 for a $18K MH. I put it on the Settlement sheet. If they are in a hurry to move in and are short some of the dp money, I have been able to get the unit sold by splitting the dp money over two months. I did a 65% 1st Month, and 35% within 45 days. This makes the sting of coming up with a deposit with the Park (usually a Months Lot Rent)and other moving costs not hurt so much and can save a deal sometimes.
Re: advice for 1st deal! - Posted by Anne_ND
Posted by Anne_ND on April 20, 2006 at 09:46:15:
Good for you for getting started Dario.
For me, depending on the time of year and market conditions, that first chunk of money to move in can be a real challenge to my buyers. For instance, in one park I work in, they have to pay a security deposit and the next month’s lot rent (even if it’s April 2, they have to pay May lot rent up front).
I’ve dealt with this by paying the May lot rent to the park when I close with the buyer, and I get the buyer to sign a statement saying that the May lot rent comes back to me on May 1 (and a promissory note for the amount). I used to collect pro-rated lot rent for the month they moved in, but nowadays I just let that go.
Another thing, I now tell them the monthly amount they will owe including lot rent, so when they call I say “$600 down, and $535/month INCLUDES lot rent”. That way the excellent monthly price (compared to rents) hits them smack in the forehead.
good luck,
Anne
Re: advice for 1st deal! - Posted by Ryan (NC)
Posted by Ryan (NC) on April 20, 2006 at 07:13:59:
Dario after you’ve done as Todd suggested and checked with the park you are on your way. The title transfer here in NC is $40 and no tax other than any outstanding personal property tax is due unless you are a dealer. As for insurance, hit your local Farm bureau to get coverage, they are hands down the most reasonable here in our state.
Best wishes,
Ryan Needler