Posted by Jacque - WA on March 08, 2001 at 10:56:55:
Hi Blane,
It seems the bandit signs are working really well for these types of homes and I was just curious if people were doing these types of things.
I wouldn’t feel comfortable taking over someone’s payments on deals like these…I’ve done 3 Lonnie type deals and really enjoy getting the money I buy these homes for back in the down payments so that anything after that is gravy. It makes me more comfortable knowing all I have to do is simply wait for the payments and no huge loan balances looming over me.
I received 2 phone calls from my bandit signs and wondering if I can make these into deals.
They are both 2000 model homes, one a 3bdrm/2bth and the other a 4 bdrm/2 bth. Both are located in great parks. They each have little equity, and have only been owned for 1 year. The loan balances are $40,000 (3/2) and $66,000 (4/2)?.Both of the sellers want someone to simply take over the payments?.I know there are ways to buy homes with little equity but does this also work for manufactured houses?
Posted by Blane (MI) on March 07, 2001 at 21:08:14:
Jacque,
It may be safe to assume these people owe more than the home is worth at this point. Even if they don’t, any profit here is going to be real skinny and not worth it IMHO if you really wanted to get into MH’s. For what little positive cash flow you’d get you can buy an older MH for 2-3K, sell for at least double and get similar cash flow with less risk. These aren’t “deals” in terms of what people on this board are doing. Not even close. Hope this helps.