Latest deal - Posted by Karl (OH)
Posted by Karl (OH) on October 26, 2000 at 08:58:54:
Here’s an interesting deal I started last night.
An older women called me a couple months ago about buying her home. She has a 1981 14X70 3 bedroom, newer floors and carpet, newer appliances, new water heater, nice porch and awning, good condition, just needs a little paint and a power wash. She was waiting for a spot to open up in an assisted living community. She was asking $8k. I can sell 3 bedrooms instantly in my park, I have several buyers waiting, so I told her to call me when she was ready.
Yesterday she calls and says she’s moving next week. Now her price is $7k. So I stopped by last night and chatted with her for awhile. She doesn’t really need the money, just doesn’t want to get stuck with lot rent next month if she doesn’t have to. So she’s not really a motivated seller yet. But the park manager told her that her best bet was to sell her home to me, I was honest and could be trusted (a rare trait in my local market). So she had decided she was going to work something out with me even before I got there. A MH realtor had called her earlier in the day, she told him she already had a buyer.
So I made her two offers. One was $4k cash on the spot. The second was $6k at $200 a month for 30 months no interest. She took the $6k. We signed a purchase agreement and I gave her $100 deposit, we’ll close next week after she moves out.
I know how crucial it is to negotiate the very best price possible, and I usually wait out a seller for awhile to get their price down. I probably could have knocked a couple more grand off her price with a little time and more negotiation. But I enjoy it when I can give someone a price close to what they’re asking, if I’m going to make a nice profit. (I just don’t have that killer instinct!) But I also think its good for my reputation in this park. No doubt this woman will tell her friends and neighbors that I gave her a good deal. She was happy with my price.
NADA value on this home is about $10.7k. I’ll either sell it on a note for around $11k or $12k, or cash out through my broker for no less that $10k.
Now the question is do I lease/option the home from her, or put the home in my name and give her a note? If I don’t resell for cash, do I lease/option to my buyer, or sell it to them on a note? I guess that will be one of my questions at the workshop this weekend.