Posted by arnold stewart on September 20, 2004 at 18:03:42:
Are there any good deals with model show homes that appear to be discounted??
Bank repo deal - Posted by Karl (Oh)
Posted by Karl (Oh) on September 15, 2004 at 24:42:31:
Here?s a good one about a bank repo I just bought.
One of my very best payors bought an older 2 bedroom from me a couple years ago. So far he?s paid me about $6k in payments on a home I originally bought for $4k. He?s been after me for a while to trade up to a bigger 3 bedroom. His son lives in another home in the same park, right next door to a very nice 1996 16X80 that just went back to the bank. So the father and son asked me if there was any way that I could get that home and put the dad into it on payments. They would take it exactly as-is, if I could just buy it and provide the financing.
I called the bank about two weeks ago to talk about the home. This was a bank I had never worked with, or even heard of before. The repo rep told me that they needed $15k for the home. I told him that I?ve been buying homes like that for $5-$6k from Greentree and other banks. He told me all about the current trends in the wholesale market. Prices are all going up, and the days of buying homes super cheap are over. I told him I?d call back.
A couple days later, he now says that his best price on the home is $10k. It was a newer 16 wide in nice shape, he has a lot of buyers for those homes, and he?s sure that he can get that much from another buyer. I told him I?d call him back in a couple of days.
He called me the next day and told me he could sell it to me for $9k if I agreed to buy it that day. He told me all about his bank?s pricing policy that only allows him to go down to a certain percentage of their listed retail, and his hands are tied at that price. I told him I?d look at the home again and call him back before the end of the day (which I didn?t).
A couple days later I called and again asked for his best price. Now he?s down to $8k. By now the father and son are getting anxious to close on the home, and I need to wrap up the deal. So I told him I?d give him $7500 if he took care of the $1300 owed in taxes. He faxed me a purchase agreement yesterday.
New investors are always asking how to work with banks to get good repo deals. I got this bank to cut their price in half just by stalling on making an offer for a couple weeks. (However, I’ve tried that exact tactic on other banks before, and it got me nowhere.) I probably could have worked the price down some more, but I got to my target price, and was ready to move on to the next one.
I?m selling the home on payments for $20k, 12.75% interest, $325/mo. I?m taking the older 2 bedroom back on trade, and should be able to resell it for around $12k on a note.
Karl Kleiner
Re: Bank repo deal - Posted by ~~Beachboy-GA.
Posted by ~~Beachboy-GA. on September 17, 2004 at 20:28:56:
banks hate mobile homes they have to take back.They will blow smoke up front to see if you will hit the bait, if you don’t they will deal with you. I recently bought a single wide on 1-1/2 acres. A bank repo. The bank made me a 100% loan,plus 3K to rehab it , and no payments for 3 months.$11,000total… will be on the market soon for $42K …anyone want to buy the paper when I get it sold?
Re: Bank repo deal - Posted by John
Posted by John on September 15, 2004 at 15:25:48:
Karl,
I too think the story is great. I also like how you described that once
you got the price you wanted you did the deal and moved on. No use
trying to squeeze the last little bit when there are more deals out there.
John
Re: Bank repo deal - Posted by Tampajim
Posted by Tampajim on September 15, 2004 at 09:48:41:
Great story Karl. Having dealt with many banks before my awakening, I love stories like this.
Nice job.
Jim