I should leave town more often! - Posted by Karl (Oh)

Real Estate Investing Mobile Homes & Mobile Home Parks
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Posted by Karl (Oh) on May 23, 2000 at 08:33:48:

John,

Get down here, I need help with all these trailers!

I was in Findlay all weekend, but was extremely busy getting my brother married off. Sorry I couldn’t find time to get together, hope you guys had a successful meeting.

Several of my relatives had been hearing rumors about my MH business, and quizzed me about it when we were all together. I gave a group of them a little presentation on what I was doing, the funny looks all went away when I started running some of the numbers by them. Its amazing how the skeptics disappear when you can demonstrate results.

Karl

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I should leave town more often! - Posted by Karl (Oh)

Posted by Karl (Oh) on May 22, 2000 at 22:20:03:

I left Cincinnati Thursday to go to my brother’s wedding for the weekend, and decided to take my first weekend off since the convention in Atlanta and not answer my cell phone while I was gone. When I got home today I had several interesting messages.

One was from a guy who moved a trailer for me a couple weeks ago, he wanted to know if I wanted a repo he just bought in my favorite park. He would sell it to me for just what he paid, if I hired him to move it. (He knows the park needs it moved to a different lot). I had already looked at that home, and was interested in buying it. I don’t know why he doesn’t want to make a profit on it, but I’m not going to ask. I also don’t know what he paid for it, but I know the bank was starting at $3000, so I hope he didn’t pay more than half of that.

Another message was from the park manager in that same park, he had just shown that very same trailer to a guy with $4000 cash who wants to buy it bad, and the park manager told him that I owned it. By the way, the park manager was hot for me to buy that trailer, and offered to pay to have it moved to another lot if I would buy it and do my thing. He’s anxious to put a new double wide there, but didn’t want to lose that trailer from the park, so he’s helping me put it on another lot.

Is this business great or what? Its great having other people doing all the work and letting me make all the money. I should leave town more often!

So I guess I need to make a couple phone calls, do a little paperwork, and collect a couple grand. I’ll probably try to get $6K or $7k for the trailer (it need some work), and carry a note for the difference. After all, I went to the trouble of buying Notesmith, and I’ve only had a chance to create two notes. These all cash deals are breaking my heart!

I hope everyone is also having good luck with the mobile homes. Its funny, a couple weeks ago I was getting a little down because it seemed like none of my deals were coming to fruit, now its starting to break loose. My broker left me a message today that 2 of my buyers got approved for their loans, and I’m closing this week on a 10% commission deal on a $33k doublewide repo I’m helping a bank sell. All I had to do was put an ad in the paper, show the home half a dozen times, and send the best potential buyers to the bank until one of them was approved. A few signatures later this week, and its payday.

Here’s the big question. Why am I getting up tomorrow and going to work? Oh well, not for long.

Karl Kleiner

By the way, I still haven’t sold the very first trailer I bought. I’ve been sitting on it for 3 months, but just haven’t had time to do anything with it. But the park isn’t charging me rent, and they’re mowing my grass for me, so no hurry I guess.

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Can this be real? - Posted by Karl (Ohio)

Posted by Karl (Ohio) on May 23, 2000 at 23:13:41:

Heres an update on this deal.

The mover who just bought this home from the bank paid $2700. The bank wanted $3000, he paid way too much. He has offered it to me for $3500, including a $600 move, so he really wants $2900.

The buyer who already saw this home and has decided he wants it more than anything called me today (six times), he has $3000 cash, will I carry a note for whatever the difference is? He saw the mover’s phone number in the window of the trailer, also called him, the mover said he must call me and work it out will me, why I don’t know. I guess the value I add is I put the deal together, and coordinate the move, the utilites, and the park manager issues. I told the mover that if this buyer falls through, I walk away, he’s on his own.

The park manager needs this home moved, he has offered to pay up to $1000 for the move, but only if I buy it and move it and keep it in his park, of course.

So here how the deal will work.

I’ve agreed to buy it from the mover for $2900 (if and only if the buyer comes up with the down payment). The park manager will pay the $600 for the move, plus $300 for utilities, for a total of $900. The $400 for the skirting will be spread over the buyer’s lot rent over the next year, compliments of the park. A little trick I read in someone elses post recently, thank you whoever you were.

I’ll sell the home for $5500, because the mover quoted a price to the buyer of $4500 without the moving costs, and I’m an incredibly nice guy. The buyer will give me $3000 cash, and I’ll carry a note for $2500.

So I have no money into this deal, and will have a note for $2500. Is that an infinite yield?

Like Debra above says, pinch me.

Karl Kleiner

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Re: I should leave town more often! - Posted by JHyre in Ohio

Posted by JHyre in Ohio on May 23, 2000 at 07:19:29:

Karl,

Excellent…I need to move to Cinci before you get it wrapped up! Nice to hear things are well.

John Hyre

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That’s fantastic, Karl! - Posted by Debra G.-VA

Posted by Debra G.-VA on May 24, 2000 at 09:48:05:

It’s wonderful to be put into a situation where everyone wants you to help them out, and they are actively working to help you make money! You must have developed a fantastic relationship with these people. My goal is to develop similar relationships here. Good going!