Re: Thanks for replies… & clairification. - Posted by Ed in Idaho
Posted by Ed in Idaho on May 06, 2007 at 23:17:58:
Anne, after I wrote this post to you I did an archive search on “Buy-Back” and the first thing was a detailed example of what you do.
http://www.creonline.com/mobilehomes/wwwboard4/messages/38138.html
My main question has been answered and my new question is, have you changed or tweeked this in any way or is it golden the way it is? Thanks again-ED
Here are the three words Steve and Marty meant… - Posted by Anne_ND
Posted by Anne_ND on May 07, 2007 at 11:00:19:
“I love you”
But I also like your interpretation: “read the book”
and BTW, “read the book” is never an unhelpful response if it’s warranted, i.e., the poster clearly should have been doing a little homework before posting a question that’s already been answered a frillion times. I’m not saying that’s the situation with your question, just putting it out there.
love,
Anne
Re: Thanks for replies… & clairification. - Posted by JeffB (MI)
Posted by JeffB (MI) on May 07, 2007 at 07:33:28:
Ed,
My program goes like this. IF the buyer’s original down payment was sufficient to cover the sales tax and title fee, and IF they make their payments on time for a full year (this is critical), then I will take back the old home and sell them a bigger/better one (at full retail) with no credit for their “equity” in the old home, unless they have been in it long enough to pay it off or pay down the loan balance considerably.
I like for them to come up with SOME kind of additional money for the new home, usually $250-500 at least, just so they understand they are upgrading and it helps to offset the tax/title costs in my state.
I like to reward my good paying buyers who keep their places nice… plus those are exactly the types of people I want in my more expensive homes. So I’m more than happy to move them up, even though it costs me a little bit by not getting the full down payment I might get with a new buyer.
I don’t advertise that I have a buy-back program, although effectively I still do the same thing. I have to go read Anne’s post about her buy-back deal again… I don’t remember the specifics.
Jeff
Re: Thanks for replies… & clairification. - Posted by Anne_NDq
Posted by Anne_NDq on May 07, 2007 at 11:09:32:
Ed,
I got confused earlier. There are two “programs”, one is a move-up, in which I allow a payor with a perfect history to take their equity and move into a new MH after 12 months.
The other is the Guaranteed Buy-Back Program in which I am trying to get a leetle more cash up front, and make profits from something I’m willing to do anyway- that is, take back a home in good shape from a good payor. They have no expectation of getting any money from me, they just have the peace of mind that they can give me the keys with 30 days notice and walk away from their lot rent obligation.
My other post you linked to really explains my motivation (make use of pet-unfriendly market to get wanna-be renters into vacant MHs).
Since I’m no longer in that market, and mostly I’m buying notes (i.e., I don’t put the payors into the MHs) I haven’t used that strategy in the last 2 years.
Feel free to tweak as necessary, all markets differ. The best thing is that you set up an expectation that they will get $0 when they leave AND they feel lucky about it.
Anne
Ohhh… - Posted by Jeff-oh
Posted by Jeff-oh on May 07, 2007 at 12:02:52:
I guess being a guy thoes three word rarely come to mind… 
Take care.
They ARE lucky! - Posted by Lin (NC)
Posted by Lin (NC) on May 07, 2007 at 17:49:51:
I would only add that they ARE very lucky to be able to walk away.