Posted by Tony Colella on April 29, 2007 at 18:33:17:
First you need to buy right, the rest is just a mess you can wade through later.
Tony
Financing question for MH deal - Posted by chancer
Posted by chancer on April 29, 2007 at 17:33:19:
Here the story…
A woman I work with is leaving town at the end of the summer and wants to sell her trailer for $11,500 to 12,500 (has old note with $7500 on it and needs rest for moving, etc.) The MH is very sweet. 1985 14x70, 2bd/2ba. Totally remodeled with sheetrock walls, new carpet, new 1x1 tile flooring, sunroom, deck, etc). In very nice A+ MH park near Asheville.
I only have a few thousand to bring to the table and I wanted to know if it was legit to create an investor group that would “issue” shares of $250 each (50 people max)to buy out the lady who is moving?
The investors would then all get partials of a promissory note earning 10%. I hope to sell the trailer for around $18,750 -19,750 or better due to conidtion and location.
Does this make sense…? Some friends said I would have to
open escrow acct, create some kind of REIT, etc.
Why can’t I just put together the numbers and write out a proposal and start talking to folks and see what happens…?
Any sound advice, or knocks on the head are welcome.
Chancer
Read The Dang Books!!! - Posted by Ryan (NC)
Posted by Ryan (NC) on April 29, 2007 at 20:12:53:
Chancer,
Before you do ANYTHING please take the time to order and read all three of Lonnie’s books! PLEASE, PLEASE, PLEASE, I’m begging you to read them!!!
As Tony pointed out you must buy right to make money, if you can tackle that one small task you can pretty much mess everything else up and still make a few bucks. I live less than an hour from you and your numbers are completely off and you’re contemplating messing with up to 50 other peoples money!
I just did an 87 model Manson, the unit did need floor coverings and paint but we paid $750 plus $500 in back rent for it and total we were in it for somewhere around $3200. That unit looking almost like it did brand new sold for $12,900 not 20k.
Unfortunately compassion and money rarely mix, your co-worker is upside down and will be real lucky to get what she owes for the home… Do your homework and please don’t take the ready, fire, aim approach to this business.
Best wishes,
Ryan Needler
Re: Financing question for MH deal - Posted by Kevin - WA
Posted by Kevin - WA on April 29, 2007 at 20:05:35:
Tony is right, of course. But in addition, that sounds like a heck of a lot of work for minimal money. Managing that many $150-$200 investors would be a nightmare for a couple thousand dollars.
K