Advice on Mobile Home Deal (8 units) - Posted by Wayne R Miller
Posted by Wayne R Miller on May 12, 2000 at 21:35:40:
On the advice of Ed Garcia I have been vigorously shaking trees in the hopes that a MONKEY will fall out. So far no monkey’s but 8 mobile homes did fall out of one this week. I need some advice on how to proceed.
First, I got an Email message from a MORTGAGE BROKER giving me a man’s name and phone number who might have a mobile home for sale. First question: why was the message from a MORTGAGE BROKER? Should this mean something?
I called the guy. When I asked about a mobile home for sale. He asked me how old I was and did I have any experience with mobile homes. I told him my age and that I had not only owned and lived in a mobile home, but had worked part time in a park doing installs and repairs. He then proceeded to tell me all the problems he was having, the pile of judgments he had for back rent that he couldn’t collect on, bad tenants stealing the copper lines from the central air…etc…etc…etc… Next question: why this song and dance? Is he trying to talk me out of buying? Or does he just talk too much?
Now the good part. He has 8 MOBILE HOMES! All in the same park. 6 rented for 200-240 (he was vague)…one vacant minus the copper lines for the AC and one sold on contract (he couldn’t remember the details). He was vague about the ages except to tell me the vacant one was a 1990…so I assume they are all at least that old. I asked him to FAX me a list of addresses so I could take a look at them. Ha Ha…no FAX machine…but he did give me the addresses…at least the ones he could remember and descriptions of the ones he couldn’t. Next question: Is this guy for real? Is he playing with me or does he really not know?
I asked about what he would like to get for them. He had no answer but asked me what I would like to pay! Hmmmm…I told him that I wouldn’t even guess without seeing them. He said they were real nice and the 6 paying renters were all current and asked again what I would pay. So I told him my numbers have to work with my partner (my wife, my dog, etc) and my bank and that the last one I had seen was priced at $3500 and I offered $500 ( I didn’t tell him if I got that deal or not…and I haven’t…yet!) I expected him to drop the phone or hang up…but no…he simply said that was a good deal…but he had a lot of money in his. Still no figure from him and I was silent on what I would pay. Question: Why this dance? Is he waiting to see if I am foolish?
Next the conversation got really wierd. He went into a long diatribe about his weight and the left ventricle of his heart and the doctors he was seeing…and a transplant…and his age (65 I think)…and how he was tired…and he had to pay to have everything done on his homes…then he asked who did my packages? What the heck? I guessed he was talking about HVAC and was right…I told him one of our guys…he said he knew him…then went right back to his health and that his heart could explode any minute and on and on and on. I was polite but bored stiff. Next question: Is he a lonely old man that needed someone to talk to? Or is this part of a game I have never played before?
The nhe cussed the new speed bumps at the park…told me the name of the manager…she knows everything…teh rent is $215…then he cussed the 2 kids who drove fast and made them put in speed bumps…ruined it for everyone…but said the park was nice. Question: What’s up with this?
By now I was desparately trying to get off the phone… he asked for my phone number…and said he would get back with me…for what?? I called him!! I told him I would look at all of them and we would talk again…whew…what a conversation!!
What are these worth as a group?
Why did he appear to try to talk me out of this before we even talked about a price?
I’m thinking of two offers…1 low ball cash…say 15,000 for all eight (buying the contract as well) as is…or a higher offer subject to inspection with some down and a note to him. Any comments on the offers?
He sounds like he is motivated by his age and health and wants out. Am I reading this correctly?
This will be my first mobile home deal. I want to give this guy what he needs and make a buut load of money. Is it possible?
All advice is welcome. What would you do?
Wayne in Peoria