here's how it starts . . . - Posted by Steve-WA

Posted by JeffB (MI) on March 29, 2006 at 21:32:26:

I remember that. I had talked to that guy quite a bit at the convention. He was also in the mobile home workshop on the day before the convention. Funny thing about that deal, I asked the guy afterward and he said he “got his price” anyway, that’s exactly the number he had in mind but started waaay higher. Maybe it was a win win for both of them, but if I hadn’t known better I would have thought that whole thing was staged.

here’s how it starts . . . - Posted by Steve-WA

Posted by Steve-WA on March 28, 2006 at 15:55:33:

coupla days ago, scroll down to see for yourself, a guy posts about leads in Tacoma. Rich is a “I Buy Houses” guy, bandit signs and all, and he doesnt want the leads on MHs.

So one he gives me, for a finders fee if (when) it works out, is a 1979, 2/1 singlewide in a family park @ 325/mo.; owner asking $700 (yes, seven hundred dollars)

I call, I go look, I talk to PM . . . ACTUALLY, its a 14/70, 2/2, needs about $500-1000 in work, rent is 385, current, but 756 in back taxes. PM says all is good, oughta sell for 7K-9K, and “those kids are really in a bind - you’ll probably get it for a good price”. This is a new park for me, so i’ll have to cover some rent til sold, I expect - - - and that’s OK. 73 pads, mostly singlewides, and I saw a few more FSBO signs as I cruised thru. This would be a good park to work - distant, but what else have I got to do?? ;-)3

BTW, the PM asked for a set of keys to show the home, and is pretty sure he can get me a buyer - that’s another finder’s fee - dangit!

Called a handyman contact in the area (highly recommended; never used him yet), will get back in touch tonight, after which I will call the seller. . . I am likely proposing they pay April, I pay taxes, they give me the title.

If that works, then I am looking at 1756 into it (not counting the finder’s fee to my buddy Rich!!) , selling for 500-1000 dp, and 200-300/mo. for 3 to 5 years. Bread & Butter.

More to come . . .

Re: here’s how it starts . . . - Posted by CR Smith

Posted by CR Smith on March 28, 2006 at 16:22:48:

Congrats Steve.
Long story short, you think it would be worth calling a few of the “I Buy Houses” operators in my area for leads (offering them a referral fee in exchange for)?

yes, and no - Posted by Steve-WA

Posted by Steve-WA on March 28, 2006 at 17:37:11:

I would recommend IBH guys for MH leads IF you have a few under your belt.

If you’re a new guy, then the place you need to get your leads is PMs. There’s really no shortcut to that.

Just like the book says.

Re: yes, and no - Posted by CR Smith

Posted by CR Smith on March 28, 2006 at 21:20:32:

Sort of along the lines of what I was thinking. Got two leads from a PM in the last two days, so things are rolling along in that respect, however, one is priced way too high and the guy who is selling won’t be a motivated seller for a good while, and the other is a 14x60 2/1 (which Lonnie advises AGAINST).

Re: yes, and no - Posted by osupsycho (OK)

Posted by osupsycho (OK) on March 30, 2006 at 15:42:38:

Just to add to what the others have said but I just sold a 2x2 last night. Had it sold before I even ran an ad on it. Also was able to sell it for triple what I had in it so they can be some good money makers because they are usually so cheap to pick up.

Just my thoughts,
Jad

Re: yes, and no - Posted by Joe C. (AR)

Posted by Joe C. (AR) on March 28, 2006 at 22:21:40:

I’ve never had any trouble selling 2/1’s either. With limited lot sizes in some older parks, anything bigger won’t go.
Joe C. (AR)

2/1’s - Posted by Steve-WA

Posted by Steve-WA on March 28, 2006 at 21:37:00:

these are my bread and butter.

I am behind following the Lonnie model - it has been said many times that it is a time tested model, and to veer from that is to invite risk; I also think that if a person’s market will support buying and selling 2/1’s, 1/1’s, jet ski’s, or treadmills, then one must learn that market and consider the possibility that there might be money to be made there.

You decide, but you might try the tack of trying to find a buyer BEFORE purchasing the home, i.e., option it.

Re: 2/1’s - Posted by CR Smith

Posted by CR Smith on March 29, 2006 at 08:47:20:

“You decide, but you might try the tack of trying to find a buyer BEFORE purchasing the home, i.e., option it.”

This is not a bad idea. Little advice on this part of it. They owe about $8900 on it to Greentree. They have made some improvements to it such as a covered deck on the front and a fenced in yard, so I can tell they are hoping to get at least what they owe.
They are about to be very motivated since they are moving an hour away and will be paying double lot rent very soon.
I plan to re-read my DOW negotiation chapter tonight, but what is the best way to make an offer in this situation?
It’s a 96 14x60, and I’ve studied my market enough to know I can get $14 or $15K for it. However, just because they owe what they owe on it doesn’t mean that’s the minimum asking price.
What’s the best way to say that in my initial offer? Or is what I just said the best way to say that? :wink:

Re: 2/1’s - Posted by Marty (MO)

Posted by Marty (MO) on March 29, 2006 at 19:17:03:

similar deal a couple years ago, almost identical numbers… we helped the sellers get out of the home by creating a separate note to them with easy terms. They owed $8500, I think, but we were only willing to pay $5000. We had a buyer already lined up who had $2000 to put down. When it was all said and done, we had 2 performing notes. Because the sellers had outstanding credit, we didn’t require collateral (we almost grabbed their wedding album…). Even if they didn’t pay, our numbers were still reasonable.
I’d love to pull more of these deals, but they’re hard to secure.
Just an idea…
Marty

Re: 2/1’s - Posted by Steve-WA

Posted by Steve-WA on March 29, 2006 at 14:51:39:

stick with what works: what’s the least, you’d take if i brought all cash to the table, today?

when its 8900, you wince, and wait. No really, whats the absolute bottom dollar, all cash price?

I’m no good at negotiating, so I hate doing it. What is the absolute lowest, bottom of the barrel all-cash price? If you get to a mutually acceptable number, then get the option (forms at ernesttew.com)

THEN, you can tell them that you’ll use your marketing outlets and contacts to try to find a buyer, and when you do, you can close the deal with them at their YOU.

Then go find a buyer, get the committment and downpayment, and buy the trailer, then sign papers with the new buyer and sell the home.

Re: 2/1’s - Posted by Chris-Fl

Posted by Chris-Fl on March 29, 2006 at 21:54:01:

How about not even buying it?

I’m still new to MH’s but I am really getting into this. I’ve done 2 deals in the last month. This state has strict rules on buying and selling without a license.

Would it be worth trying to negotiate the lowest possible price… getting an option on it or an assignable contract… finding a buyer for it… using the buyers down payment along with my cash to purchase the property for the new buyer and creating a note with the new buyer? Therefore the seller gets his money, buyer gets the property, my name never hits the paperwork other than now I have created a note and get payments…

Is this another way to structure this?

Golden! - Posted by Michael(KCMO)

Posted by Michael(KCMO) on March 29, 2006 at 20:13:53:

"No really, whats the absolute bottom dollar, all cash price?

I’m no good at negotiating, so I hate doing it. What is the absolute lowest, bottom of the barrel all-cash price?"

I love that!

Re: 2/1’s - Posted by CR Smith

Posted by CR Smith on March 29, 2006 at 15:23:27:

Steve,
You’ve given some helpful advice (esp the option forms). I’m glad to know others have been successful without the love of negotiating. It’s hard for me to be brass tacks, but my wife will serve well in that respect as what the used car dealers call the “higher authority”.
You said,
“THEN, you can tell them that you’ll use your marketing outlets and contacts to try to find a buyer, and when you do, you can close the deal with them at their YOU.”

Probably a dumb question, bu what does YOU stand for?

thanks to Bob Shemin - Posted by Steve-WA

Posted by Steve-WA on March 29, 2006 at 20:17:06:

remember he did that lasst year at the convention? With the guy in the harley shirt who had lots in Arizona

duh - Posted by Steve-WA

Posted by Steve-WA on March 29, 2006 at 16:52:39:

its typing and dragging my thumb against the laptop fingerpad - its just out of place - disregard. The idea is get a price that you both agree on, then get a committment, and sell before you buy.

Many folks will do this to get a price that they can get the same amount as a down from their buyer, but personally, I am satisfied to get the committment.