HELP! Potential Deal …Revised (long) - Posted by JayG-Dallas,TX
Posted by JayG-Dallas,TX on July 13, 2002 at 01:33:45:
First, thanks to all of you who gave me word of advice. I really appreciated all the help.
I visited the home at the mover lot. The owners of the lot were great. When I came forward and told them that I didn’t have any experience, they took me through several homes, from trashed - just pulled into the lot, all the way to fully refurbished, waiting for sale.
The home that was offered to me for $5K was in decent shape, but needed a lot of cleanup. No water damage. Furnace and AC are tough to figure out, since the AC was disconnected and in the home, and the furnace looked pretty old, but again, I’m no expert. Definitely new carpet and vinyl, wall repairs, new doors, a few new windows. But I didn’t really discover the interesting stuff until I sat and talked with the moving company owners.
The lot the home was on was foreclosed on, sheriff hired moving company to move the home out of the park. So movers are now owed $2500 for the move. In about a week, they will start charging the home owners $20/day for storage. In a month or two, the movers will need to place a warehouse lien on the home if they feel what they are owed is getting close to what the value of the home is.
The house was built in 1986. The moving company owners suggested that I take pictures of the home and make sure the parks that I’m considering will accept the home.
They also recommended that I check for any back taxes and current taxes owed in the counties that the house was in, and make sure the title is clear.
Finally, they said to make sure I consider that it will cost around $2K plus to move plus another $1K to set it up, reconnect utilities, reconnect AC, etc.
So on top of the price of the house, I’m looking at:
$2500 (owed to movers)
$2000 (guessing $$$ to refurbish)
$2000 (move to new lot)
$1000 (setup and reconnect)
I don’t think there is enough room for me to make any money on this home. Even if they sold it to me for $1000, I would still be into this home for another $7500.
If I’m wrong, can someone please steer me in the right direction?
On the plus side, I made some new friends at the movers lot, and I told them I would call from time to time to see if they had anything that might be interesting on the lot. At the very least, I got a free seminar on repo homes!
Jay in Dallas, TX.