Posted by CH-CA on May 18, 2000 at 16:15:14:
Just wondering if you were in Chula Vista yesterday looking at MHs on a storage lot? I was there and saw a younger guy there with an older guy (I think you are my age - 28-29). Just wondering…
CH
letter to home owners - Posted by Mary Ann
Posted by Mary Ann on May 18, 2000 at 13:34:20:
Hi! I am in the process of doing my first deal. I was at the park today and picked up a list of other homes for sale in the same park. I was really surprised at the prices. Average price between $10,000-12,000. Obviously I don’t want to pay that much. I thought about sending each home owner a letter telling them I would be interested in purchasing their home, but I don’t know how to tell them that I am only interested if I can pay a great deal less than what they are asking. Has anyone else sent letters and had any success? Thanks very much.
The best results…by far - Posted by Dirk Roach
Posted by Dirk Roach on May 18, 2000 at 13:48:49:
Hi Mary Ann,
The best way is to have an actual face to face with the prospective home seller.
Your list of sales prices sounds right about the starting mark for used, older, ugly, single wides HERE IN MY MARKET. However just because we start the dance to that tune, that does not mean to say that is what we finish on.
Often times people (New Investors) Start off the dance at say 10k, then get all excited at “grinding” the seller down 1k to 9k. But Mobile Homes as with other traditional RE, the old adage 10% is air applies. Even if the prosecpetive mobile home can be sold (on a note) for say 15k, it’s still a poor investment because for the same 9k one can get three Lonnie type deals for flying into the deal for 3k a piece. See you tie up the same amount of cash and have more cash flow coming in.
So what the new investor needs to do is to build up their confidence and Negotiate, Negotiate, Negotiate. Also dealing with an actual “Motivated Seller” helps a lot too, as opposed to wasting ones time with maybes, and tire kickers.
Which brings me around to your post. How do you determine if someone is a motivated seller? By Talking to them. Getting the facts. Knowing the story.
Mobile Home folks ARE NOT traditional home owners. You have to be on their level, to get them to open up to you and let you know what’s going on.
It’s just basic sales, you not only have to know you product, but also your customer.
Once you know that then you can help them, out with their problem, feel good about yourself, and pat yourself on the back on the way to the bank.
Their happy, your happy, everyone’s happy.
Hope this helps
Dirk