Stop! - Posted by Tony-VA
Posted by Tony-VA on January 07, 2001 at 09:46:16:
Tony, I had to take a few moments to calm down before responding to this post. My frustration and concern is only for your well being in this deal.
Your excitement is commendable. It is good that you are so enthusiastic. But I caution you to use it wisely. Enthusiasm is a product of emotion. Emotion is a poor business advisor. Misplaced enthusiasm can lead to business decisions based upon emotion and not facts and numbers.
You believe you have found a great deal, yet admit you do not have experience in mobile homes, nor have you saught education from Lonnie’s (or other) books/courses. How do you know that this is a good deal? What is your base of comparison?
Questions that immediately jump out are:
Is this in a park?
Can it remain in the park?
How much back lot rent is owed?
Why is the owner selling?
What is their motivation level?
How much can you sell this home for?
What are the lot rents?
How long do you anticipate your holding time to be?
How much have you estimated holding costs to be?
How can you protect your interest if you don’t know how to document the transaction in your state?
How did you perform your “due diligence” if you are unaware of what can hurt you in these deals?
These questions and many more screamed at me when I read your post.
Please understand that my post is an attempt to point out the possible harm that this deal could present to you. It is not my intention to rain on your parade.
I believe that in your previous posts, you mentioned you have invested in real estate. Let me ask you this. Would you have invested in a Single Family Home based upon the information you gained from a few paragraphs from posts made by people all over the country?
I hope you are able to retain, and contain, your enthusiasm. Apply it in a directed, educated manner and you will be successful. Leave little to chance. Make your money going into the deal. And as Terry reminds us, “Always reduce your exposure, both legally and financially.”
Best Wishes For Your Success,