I have a doublewide mobile home on land under contract for $36k, $4k down and payments of $450 with 0% interest. ARV is $53k. My plan is to find a buyer who I can assign the owner financing contract to for $4k, or lease option at a higher sales price and monthly payment. I placed an ad on Craigslist, as well as the local online classifieds, but I haven’t had any activity. It’s only been one day, but I thought people would be beating down my door for a lease option deal in this economy. Am I going about this all wrong? Is there a better way to try to sell this? Thanks in advance for any help!
Tracy,
A couple things.
FIRST I don’t think it is the economy. You may not be getting any action on this deal. Because anyone with 8 grand (4 for you and 4 for the seller) plus repair funds in cash is probably not looking to buy a DW on land that needs repair!?
SECOND A lease option is a RENTAL plain and simple. Do you have the funds to pay for repairs, vacancies, etc, the patience to deal with it (I’m thinking not since you are frustrated after waiting a WHOLE DAY for a response to your ad), the knowledge and backbone to be a landlord?
Before you commit to this deal talk to a seasoned investor about it and make sure you are ready willing and able to do the deal. You may be able to bird dog this to an investor for $500 or so.
Tracy,
Congrats on stepping out into the investing world. I do believe it IS the economy but otherwise, I agree with Don. Unless you are in a hot market (very few around U.S.), no one will beat down your door for any deal.
At best, you could flip the contract for $500-1000. You might be better off staying with the contract and renting out the home for $800/ mo if you can get it and stomach being a landlord.
What about sandwich lease-optioning, as you suggest, but get only $4500 down so you have no money in it, sell for higher price and larger monthly payments. This may be too slim and risky depending on your area.
We are supposed to know what we are going to do with a deal BEFORE we go into it. Can you get another local investor to set eyes on this deal and make suggestions?
Don’t neglect to put out good signage. Usually the most interested prospects are those who have family nearby. They aren’t really looking to move-so they won’t see it in CL…but when they get a call from family member telling them it is available and since this is next door to family - I’ll move ASAP.
Tracy, I assumed (opps) it needed repairs because you used the acronym ARV and as an investor I always take it to mean After Repaired Value. But You must have meant Appraised Retail Value or Assessed Retail Value or something like that.
[QUOTE=Don-NY;885248]Tracy, I assumed (opps) it needed repairs because you used the acronym ARV and as an investor I always take it to mean After Repaired Value. But You must have meant Appraised Retail Value or Assessed Retail Value or something like that.[/QUOTE]
Don,
I would have thought of ARV in the way you did.
To all, best to spell things out when using acronyms that have different meanings.
I don’t have much time at the moment to reply, but just wanted to say that my CL responses (for housing) have been steadily declining in performance for 4 years now. They are just not effective, period.
I get fantastic results with a postlet ad (which propogates to zillow and a ton of other sites)
A buyer on a REC doesn’t get a release from seller just because he wants to so if you agreed to pay the seller you’re still on hook until he’s paid in full.
Now you could sell on “wrap” where your buyer pays you and you pay your seller but your obligation remains until your S is paid infull