Posted by Finance Guy on May 29, 2006 at 23:28:48:
Did you pay cash for the home? I assume yes. Did you have any rehab work? Did you finance your buyer? This is why your in business to make a profit and provide affordable housing to lower income high risk customers. You solve problems and take risks. Most people create problems and take no risks.
To your success,
Don Wilson (OK)
Buyer/seller talking - Posted by SL
Posted by SL on May 29, 2006 at 22:17:34:
I did a Lonnie deal that went well.
However, my seller came back to the MHP for a visit and had a chat with my buyer, who was living in the same MH and in the same lot.
After my buyer found out about the “low” price that I purchased the mh, he became quite upset since I had sold it to him at a “high” price (a typical Lonnie deal).
Though I explained to him that since the seller was very motivated to sell, I was to get it with a good price, I still worry about this “reputation” that might make it difficult for others to sell me their mhs in this mhp.
Anyone else has run into the same problem? Any thoughts? Thanks.
Thanks, folks - Posted by SL
Posted by SL on May 30, 2006 at 18:47:28:
Many thanks to your responses; they are very helpful.
Actually, I didn’t rehab that mh at all; it was in move-in condition. Since I am not a handy person at all, I have not done any rehabs.
Price and Cost are not the same. - Posted by Dan (Michigan)
Posted by Dan (Michigan) on May 30, 2006 at 10:41:49:
The “price” you paid to the seller is not the same as your cost in the home. You know your cost better than us, but surely you put time and money into rehab, advertising, showing the home, lot rent, etc. The risk you take when selling the home on terms adds significant value to the home as well.
I defray costs from my less than “Good Nuff” Lonnie deals by paying less for homes and then selling them at a handsome retail price. So, I guess you could say that my new buyers and sellers are subsidizing my less profitable Lonnie deals.
A buyer and seller getting together to share information and wallow in their missed opportunities is not something you should concern yourself with.
Re: Buyer/seller talking - Posted by Karl (Oh)
Posted by Karl (Oh) on May 29, 2006 at 23:57:10:
Are you concerned that motivated sellers who are desperate to dump their home for cash won’t sell to you if they think you’re going to turn around and make a profit? They don’t care, they just need you to help solve their problem.
Keep at it and you’ll earn a good reputation. You’ll be the guy who buys homes for quick cash. You’ll also be the guy who sells homes for a little bit down, and little bit every month. That’s the reputation you want, and you’ll want everyone to know.
Go back to your buyer and tell him you’ll give him a huge discount off the price of his home if you shows up tomorrow with cash. He won’t. Better yet, tell him you’ll buy his home back from him if he’s not happy with the financing you’ve provided. You’re not happy? Go ahead and move out, and I’ll give you back your money. You’re taking on a lot of risk by selling the home to him on payments, and its only right to be compensated, but if he’s not happy with the deal, he can walk away. That’ll shut him up.
Karl Kleiner