Deal with an existing mortage on MH? - Posted by Fl. Kevin

Posted by Sean(WA) on February 26, 2002 at 12:24:46:

Let me restate for the record that I pretty much agree with the earlier post from these guys. This is not a typical Lonnie deal and I would encourage you to stick to the guidelines that Lonnie describes. His formula works well and does not need any “tweeks”, just do it over and over. However, you want to at the same time develop your ability to think outside the box and find different ways to look at every deal. I think that this ability will serve you well in the future when you move on to bigger and better investments. Just don’t tie up any of your money on this, use it more as an excerise and an opportunity to learn.
I just wanted to throw in my two cents worth.
Best regards,
Sean (WA)

Deal with an existing mortage on MH? - Posted by Fl. Kevin

Posted by Fl. Kevin on February 24, 2002 at 20:16:11:

Hey,
…Guess I should know better than to even attempt this one being ah newbie & all, but ok. This fellow has A 1995/96 MH, in A nice family park. 3bdrm.,2bath & $4,500 into new tile,carpet, ect. . Lot rent $235.00. $372.01 pymts. $42,000.00 owed on it through Cesco. He wants out & is very flexible, even would pay the 6% taxes on the sale itself. Claims everything is current although had some late fees in the past, that wasn’t his fault (daughter who lives there), but are caught up now. Anything I can do for this guy? He’s willing to L/O. Thanks, Fl. Kevin.

Re: Deal with an existing mortage on MH? - Posted by Sean(Wa)

Posted by Sean(Wa) on February 25, 2002 at 13:04:19:

Although I agree with the previous post generally speaking, there are a couple of other things that you can do if you want to get creative.
My first thought would be to offer him $50.00 non-refundable option money for 90 days and then run some cheap ads and try to find a buyer that is willing to get conventional financing and cash you out when you excercise the option.
This is not a Lonnie deal as the other guys mentioned, but there may be a way to make a buck or two before you move on. Run an ad for $49,500.0 and see what happens. May work may not.
Just don’t tie up any cash until you find a good buyer. Just a thought to add to the other posts.
Best regards,
Sean (WA)

Re: Deal with an existing mortage on MH? - Posted by Tom (WA)

Posted by Tom (WA) on February 24, 2002 at 20:51:36:

Kevin,

Newbie or oldie, it is very unlikely that you will make any money purchasing a home for $42,000 as there is no chance in the world to sell it for $80,000 and that is our game plan. The seller would need to be motivated enough to pay you a bunch of cash to get him out from under the payments and space rent, etc.

There are a bunch of homes out there that are worth less than the loan amount and you don’t want them. Stick to the plan as Lonnie describes.

However, if you really want to buy homes for way more than they are worth, please give me a call. Really though, move on to the next one.

Tom

Thanks Sean /Wa - Posted by Fl. Kevin

Posted by Fl. Kevin on February 25, 2002 at 20:09:03:

Sean,
I guess one never know’s until one has tried (what your saying). Many experienced investors here on this board may say, “Kev, just go for the Lonnie Deals!” And they may be wright. But you ave got my thoughts going on this one & I will play the “What if?” game to see what happens. I might try placing an ad, too. Soooo many MH’s here in my area on the market that i have’nt even created A “Market area price range” on them yet (Seller’s asking for their price). Will let ya know if I do that particular one though.

Fl. Kevin

Re: Deal with an existing mortage on MH? - Posted by Fl. Kevin

Posted by Fl. Kevin on February 24, 2002 at 21:15:18:

Tom,
Yeah. I guess sometimes we can get caught up in non-reality stuff here. LOL! Your wright & I will let ya know on the next one I find. Thanks again Tom.

Fl. Kevin.