Posted by JHyre in Ohio on January 11, 2001 at 11:27:22:
I LOVE examples- cause then you know EXACTLY what has been and can be done. I just started looking at doing newer 3BR homes (1989+) because they attract better payors in nicer parks with bigger downs…after a million December repos on my 2BR junkers (What IS it with low-income types and Christmas spending in lieu of little details, like a place to live?).
Just put in a bid of $12,000 to Greenpoint on 4 homes- 2 that I really want and two others that they really want to get rid of. The repo manager said that corporate would VERY likely accept the bid…I should’ve bid lower! To wit:
#1 1994 14x80 3BR in an EXCELLENT park. Homes in this park start at $15,000 cash, area is very prosperous and homes do not stay empty for long. In the last few days this home has suffered water damage- it is otherwise PERFECT. Should sell for $25,000 to $29,000 cash in this park…I’ve seen 'em sell for more, but I’ll take FAST money over the LAST money any day. I figure repairs, lot rent, etc. will be about $2,000 for this deal. I’ve allocated $7,000 of purchase price to this one.
1985 2BR in the same park, in very good shape except for recent water damage (Smell a pattern?). I figure $2000 in expenses, allocated $3000 purchase price, should FAST sell for around $12,000 cash…this park only takes people with good credit and lots of people want in AND their lot rent is< $200 per month! Already have a possible “as is” buyer (our fixer-upper guy really likes this school district) for $10,000 cash.
#3 is in a 1,000 lot Toledo park that was hard to sell in last year…managers and sales people were ALL fired a few months ago (quite deservedly, I might add) and the new regime is begging me to give them another shot (I was so disgusted with previous managers that I quit doing business there). It helps that I do business in 3 other parks owned by the same company 90 miles south of Toledo…the managers there are very good and the head of the corporation (30+ large parks) knows me now. I’m getting the same perks (and more) that I receive in the southern parks- manager referals & cooperation, $1500 cash + no lot rent for homes that I move into the park and pay 1/2 rent on homes already in the park (the latter perk does not apply in the southern parks). So I’ll give it a shot. Bought a 3BR 1977 with attached garage and 2 add-on rooms (appear to be usable as BR’s, so I’d have a 5BR singlewide!). Messy, but in OK shape, should require $2000 in fix-up. Nice car left in the garage, I’ll have to find the bank that financed it and get a finders fee. Figure this one will sell for $1500 down and a note for $8,250.
Last home is in a decent Toledo park, 3BR 1982 14x70. Figure on moving it 90 miles south to the other parks. 3BRs sell fast there and it makes my managers look good. Net $700 move ($2200 for move, set-up, etc, less $1500 check from the park), $2,000 fix-up, should sell for $1500 down, $12,500 note.
So, anticipate $22,200 in, $41,500 cash out + $20,750 in notes. Of course, the plans of mice and men…
I’d like to get more of the newer 3BR’s (seeing as how I currently have ALOT of old, newly repo’ed 2BR’s) in the nicer parks for notes and cash. I’ll keep you posted, pun intended!