Re: Lonnie Deal Made - How much should I ask? - Posted by John (KS)
Posted by John (KS) on December 09, 1998 at 08:38:33:
Cost depends on the condition and the location. Put a 4-sale sign in the window and place an ad in the paper. This worked best for me;
Why rent when you can own
a mobile home, low down,
flexible payments, xxx-xxxx
Your phone WILL ring. I keep a questionaire form next to the phone, so I can take all of their information. Even if this home won’t work for them, because of location or cost, another that I might run into within a month or so might fit thier requirements.
They always ask what the payments are, and I ask them what they can afford per month. I know that lot rent is (let say) $150, and they say they can afford $350/month. This tells me I can sell it to them for $200/month. They always ask how much down, I ask them how much they can afford, I stick to what I want, but you never know what they might have stashed away. I will sell the same home for $175-$225/month for the same end cost by stretching out the length of the note. If they are looking at spending less than $175+lot rent, I just tell them I don’t have any in that price range right now. Most of the people you will be dealing with will not care about the length of the note, only what comes out of their pocket per month. You could do any of these all at 12.75% interest;
175/42 = $7350 including interest
200/36 = $7200
225/30 = $6750
The more they want to pay per month, I like to give them a little break on the end price. Or you don’t have to. I did these calculations with a loan calculator I got from www.pine-grove.com. Start pluging in numbers till you see something you like. I always go on the basic rule of thumb that I need to AT LEAST double my money. Good Luck.