Got another MH, but not a “Lonnie deal” - Posted by Jim FL
Posted by Jim FL on March 02, 2002 at 01:24:01:
I’m rarely on this forum, since honestly, MH’s are not my main gig.
However, since my call volume is large and I live in FL, I get a fair share of sellers who have them and need out.
Frankly, not too many callers have anything I’d want.
Also, I have no relationships with PM’s, and the like.
So, last week this seller calls me and has a decent early nineties MH, in GREAT shape, with land.
We talk numbers a bit and I go see the place.
It is in a subdivision that is 100% MH’s.
The lots are all sold, and have homes on them.
Over the last 6 months, three lots have sold, all between $20k and $25k.
I ran the MH thru the book and came up with a value of approx. $14k (According to the book.)
The seller wanted to just walk away, moving into a relatives house to go back to school full time.
They only owed approx. $22k on the MH and land.
Decent interest rate, so the payments are low.
Market rent on the home is about $550-$600/month.
So, we took this whole shootin match subject to.
The seller signed a note with me to make the next three payments, and cut me some checks dated for the next three months on the spot.
The sellers moved out to their relatives house, right here in town, yesterday.
I placed up some signs, and a few flyers over the last couple of days.
I advertised the place:
RENT TO OWN-Problem credit okay
2 bed/2 bath-Hot tub
Nice MH with LAND in such and such subdivision
I already talked to a local lender for MH’s (He is a friend, and someone I trust), and he said that someome should be able to get a loan on the thing for between $42k and $46k easy, including the land.
So, after getting TONS of calls, it seems the place will be filled this week.
The purchase price to my buyer will be $40,500
Not a GREAT deal, but it breaks down like this;
$1726.50 (first three months rent, I keep 100% due to seller paying me)
$230/mo cashflow after the first three months.
$15,800 backend. (We are giving the buyers $100/mo rent credit, IF rent is paid on time.)
Total: $20,406.50 (Assuming of course we get the T/B’er to refi the place at 9 months or so.)
One of the potential buyers according to my broker, can get a loan NOW, but I want the cashflow, so we’ll hold them in the place for a few months. (Shooting for the whole year)
So, no “Lonnie deal”, but a deal just the same.
Someday I’ll get into this MH thing with Lonnies methods.
This one was rather easy, and I don’t mind doing a two bedroom, since I get calls asking if I have them all the time.
I may just do some mailers to some of the local subdivisions where there are MH’s with land.
Anyway, how’d I do guys?
Tear it up or share your thoughts.