Latest deal, finally hit a home run - Posted by Blane (MI)

Real Estate Investing Mobile Homes & Mobile Home Parks
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Posted by Tony-VA on February 08, 2001 at 12:56:31:

Maybe it is your wording but something jumps right out at me here.

I NEVER make an offer to homes for sale by owners. Remember Lonnies negotiation techniques. Always let them name the numbers first. Feel them out for what they will take if you pay all cash and then walk a way.

If you make an offer, they are going to shop you. Some broker comes along and tells them their home is worth $8,000 more than you offer. Of course this includes $4k in their commission they expect. The seller sees these pie in the sky numbers and you are forgotten.

If on the other hand you hand merely mentioned that you might be interested if they could do better on the price, and gave them your card, they may well call you 4 months after their home has sat with a Broker’s sign in the window and no offers.

It comes down to finding motivated sellers. Some seller merely need time to ripen to full motivation. By naming numbers, you have given away your negotiation position. By making 12 offers on 9 homes, you have, I assume, offered more money and thus decreased your position even further.

Stick to the book and Lonnie’s techniques will prevail. I also highly recommend Roger Dawon’s “Secrets of power negotiating”. Roger does an outstanding job of explaining the various techniques and counters used when negotiating.

Remember to be a good listener and let them do the talking.

Best Wishes,

Tony-VA

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Latest deal, finally hit a home run - Posted by Blane (MI)

Posted by Blane (MI) on February 06, 2001 at 22:02:06:

Hi folks,

I enjoyed reading Karl’s posting recently about a deal he did with a real nice yield, and now that I’ve just closed another deal, thought I’d share the details so that anyone who’s skeptical and/or afraid can see that deals like this do indeed come along, if you’re ready and can see the opportunity.

A year ago when I got started came across a 1985 Champion for sale which was vacant. It was obvious during the call seller wasn’t motivated (wanted 11.5K), so I passed. During the summer, seller was told to make some outside repairs or move it, so all outside work was done. She (actually transsexual now becoming a he) called, lowered price to 9.5K. No thanks. Didn’t hear from her again until December, she had just paid off the loan balance of 10.5K, was sick of trying to sell it, was ready to “give it to a charity.” Time to go take a look inside.

Inside of home was structurally sound, no floor/water damage of any kind. Only had a stove, but no big deal. Could probably sell fixed up for 10K-12K. Asked her what’s the lowest she would take, she said I don’t care, give me anything, just something. I could have been a jerk and said something like $250, but I wanted us both to walk away satisfied. So I offered $1200, and that was plenty good for her.

Four days after I put my signs in the window, without doing a thing to the home, get a call from a couple whose folks live 4 houses down from mine. Their daughter would love living by Gramma and Grampa! They checked out the inside, liked it a lot, said what do you want for it. “As is, you can save yourself about 3 thousand.” “We’ll take it!” They moved in last week. Here’s the gory details:

$1200 purchase price
264 Jan. lot rent
21 misc. park charge I paid
370 repairs
117 sales tax paid on my purchase
525 buyer’s sales tax rolled into note

$2497 Total invested in home

Sold for $8000 as is, with $2500 down, $300 a month for 22 months. Alright!! $6600 coming with nothing invested. Sure beats a CD. For the heck of it I keep track of the time spent on homes to gauge about how much I make per hour per home. I spent a grand total of 12 hours on this home, which comes out to $550 an hour if I get all the payments. If I don’t, I resell a free home!

Obviously not every deal is like this, but you’ve got to get out there and do it for one like this to come along. For me it took a year. Hopefully it won’t take others as long. I hope newbies will read posts like this, Karl’s and others and finally take that dive. As for me, I’m stepping to the plate again, 'cause I smell another home run coming. On to the next one!

Blane

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Re: Latest deal, finally hit a home run - Posted by Karl (OH)

Posted by Karl (OH) on February 07, 2001 at 18:40:06:

Its hard to make contact with the ball when all the pitches are straight at your head! Glad to hear you’re finally getting a few high and outside.

Karl Kleiner

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Re: Latest deal, finally hit a home run - Posted by Robert MI

Posted by Robert MI on February 07, 2001 at 17:45:50:

congratulations it seems your starting to hit your stride. it,s post like yours that help keep me going with 16 offers made and not one taken. i thought i was at the end but then this comes in and the fire gets a little higher.

Robert mi

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Inspiring! Congrats, Blane. NT - Posted by Amy - UT

Posted by Amy - UT on February 07, 2001 at 11:12:51:

Way to go.

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Re: Latest deal, finally hit a home run - Posted by John (MI)

Posted by John (MI) on February 07, 2001 at 08:08:04:

Good job, Blane. And thanks for including the details.

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A study in good old fashioned stubborness… - Posted by JHyre in Ohio

Posted by JHyre in Ohio on February 07, 2001 at 07:02:10:

Having chatted with Blane here and face to face, I can tell you he had a ROUGH start…very competitive market, double-dealing park managers, you name it. He took a repeated hits, any one of which would have (and in many cases did) scare most newbies off. Not so Blane. That guy got back up and went at the brick wall head first again and again. Eventually that poor old wall figured it never stood a chance and gave way. My congratulations to you Blane- you deserve every homer you get.

John Hyre

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Congrats Blane!!! (nt) - Posted by Tony-VA

Posted by Tony-VA on February 07, 2001 at 05:21:09:

.

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Robert, call me - Posted by Blane (MI)

Posted by Blane (MI) on February 08, 2001 at 20:18:30:

There’s a deal out there for you, I know it. As soon as I sell 1 or 2 more homes in Monroe County will be turning my attention to your area, especially Belleville/Canton. Perhaps we can partner on one to get your feet wet, then you can decide which way you want to do deals after. Talk to you soon.

Blane

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Re: Latest deal, finally hit a home run - Posted by Tony-VA

Posted by Tony-VA on February 08, 2001 at 05:51:15:

“16 offers made and not one taken”? Are you referring to you making 16 offers to buy or 16 offers to buy one of your homes were received but not satisfactory somehow?

Perhaps we can bounce some ideas around to help.

Tony-VA

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Re: Latest deal, finally hit a home run - Posted by Robert E. Fornwalt Jr.

Posted by Robert E. Fornwalt Jr. on February 08, 2001 at 10:20:14:

that is 16 offers on 9 different homes. some were low but most were right on. they were fsbo.

i would make an offer and wait what seemed like months then i would make a new offer still nothing. then i go by and it would be for sale by a broker. still for the same price what about the loss do to commision.

i went to the convention in oct. but still no luck. i even went with blane for a day but it seems that i just haven’t got it right yet. but i’m not done trying.

any help for me?
Robert mi.