Posted by Joe on May 08, 2006 at 18:34:36:
I interpreted reno-ed as renovated.
how to pull off this deal? - Posted by david kopp
Posted by david kopp on May 05, 2006 at 17:22:28:
I am wondering how to structure this deal so that I can make it as enticing as possible to a potential buyer without cutting too far into my profits.
I have newly reno-ed mobile going up for sale in Kelowna (nieghbouring city). I imagine I will be able to get about 35 grand for it. There is another guy in Penticton (other nieghbouring city) who has a mobile for sale. He wants to move to Kelowna for his job (currently about a 1 1/2 hour drive). I told him I have a place available and I mentioned that I might be willing to cut him a good deal on it if he sold me his mobile or used it as down payment. I know I could sell his for about 30 grand as well. I told him I would have to give him far less than what he is asking the realtor to get him, but that the loss would be made up in the quick turnover time (no unnecessary pad rent and realtor fees plus commuting costs) and great deal on the new mobile. Has anyone done a deal like this? Is it worth doing? I don’t want to offer him too much on his mobile, but I do want it. How could I structure this deal so he and I both find it attractive? Up to what point would it be smarter to simply finance to a normal buyer?
What equity does he have in his MH? - Posted by Dave Swett-CA-ME
Posted by Dave Swett-CA-ME on May 08, 2006 at 22:42:41:
If his is F&C, could you carry back a collateral note on his MH for what you would want to buy it–say $10K or so. Then you carry the financing on your MH for $35K less the $10K credit or for $25K. Now you have two MH securing your investment.
Just let him continue to try to sell his $30K MH until he gets fed up with trying to catch the golden ring with a full price retail sale and then make him an offer to forgive your $10K note in exchange for the title on his MH. He absolutely has to continue to try to sell his MH until he reaches a HUGE frustration with a normal sale and then gives up and does your deal.
If he is successful and sells his MH, now he has to come to you for a release by giving you $10K cash for your note.
The market place does deals all of the time by selling an item at retail with a wholesale trade in of an item. Every car dealer in America does this to the retail buying consumer. Sell the dealer car at retail and take your trade-in at wholesale.
I have taken diamond rings, guns, an MG sports car, free week time share vacation, have been given a house in exchange for my skills as a real estate broker to solve a foreclosure problem.
Buy at wholesale and sell at retail.
easy - Posted by Steve-WA
Posted by Steve-WA on May 05, 2006 at 21:07:39:
just that the numbers are bigger
what do you have in the original MH? Can you couble your money (plus interest) as a discounted price after giving him trade-in? for example: you bought at 10K, selling for 35K - offer him 15K trade in (or less) and sell yours @ 20K to double your original investment. then you double your discount of 15K by selling at 30K - - - that’s a potential 50K (on payments, plus interest) return on a 10K investment.
Good 'nuf, says I.
and upon re-reading, you say the original MH is a “reno-ed” unit, which I assume to be repoed? So you may have already gotten all or some of your initial investment back.
What’s the question?