Having a hard time buying - Posted by DSmith

Posted by Michael(KCMO) on June 01, 2005 at 10:29:26:

What area are you in? That will make a difference.

Having a hard time buying - Posted by DSmith

Posted by DSmith on June 01, 2005 at 10:15:18:

Ok, here’s the story. I’ve been trying to find my first Lonnie deal for the past two months. I’ve been running ads and driving the parks. My ads have gotten me a decent buyers list, but I’ve had no sellers calling. I’ve looked at several homes, but as of yet I have not been able to get the price I want. I always seem to be 1,000-2,000 lower than their lowest price. I’m beginning to wonder if I’m expecting an unrealistic purchase price on these homes.

Here are a couple of examples:

1973 3/2 12/70 with an expanded living room on a big lot. This is the nicest home I’ve looked at (needs no work), in the nicest park around ($400 lot rent). He started off asking $10,000, he came down to $6,000, but wouldn’t budge from there. I don’t want to pay more than $4,000. I think I could sell it at $10,000 with terms, but because of the high lot rent I would have to make the monthly payments pretty low, probably $200 or less. Is my price unrealistic?

Another, a 1984 2/2, needs minor repairs, is in a pretty nice park, $230 lot rent. Their asking price is $7,000, I’ve gotten them down to $4,000, but I don’t want to pay more than $3,000. I could probably sell for 7,000 on terms. Are you guys jumping on this kind of deal or are you waiting for the bigger yeilds?

I’m wondering if I’m being a bit too stingy on the buying side. Any thoughts?

Re: Having a hard time buying - Posted by Kurtis

Posted by Kurtis on June 04, 2005 at 09:58:33:

Your RE market is going to be different than everyone elses. For Maine those are great prices. Why becuase we have a much lower Median Household income so used MH sell for more. The one w/$400 lot rent I’d try and presell becuase that has significant holding cost but the $2xx lot rent seeems like a good deal. If you figure you’ll make $3000 + 9,10,11% interest rate your doing ok. Don’t be greedy.

Re: Having a hard time buying - Posted by Chris Reuman (Maine)

Posted by Chris Reuman (Maine) on June 01, 2005 at 17:01:47:

You said that you have a good buyers list. Can you match a buyer to one or both of these homes. Your purchase price isn’t the lowest, but you still have a good amount of profit. Can any of these buyers put down a large deposit, say $2k or more? Do any really stand out with a good job, ok credit, etc… If you have a buyer that has a good long term job, ok credit, and can come up with $2k-$3k or more deposit, you have a good deal. Buy this home and flip them to your buyer. Now don’t give your buyer the location of the mh, or get the mh tied with with a 30 day option.

Best investing, Chris

Re: Having a hard time buying - Posted by Steve-WA

Posted by Steve-WA on June 01, 2005 at 11:23:28:

They are getting in range, so perhaps you could just tell them that all you have is $X, and show it to them. Yes, try the power of flash cash.

“All my wife/husband/partner will let me spend for this is $X, see? All I have.” And show them those $100 bills. “AND, I have this other trailer to go look at, so . . .”

If sellers still won’t budge, make sure they have your card - they may be calling you later. DO NOT be a motivated buyer.

Remember that your best source of leads will be your PMs - cultivate those sources.