Lonnie Deal Made - How much should I ask? - Posted by John Katitus


#1

Posted by John (KS) on December 11, 1998 at 08:28:11:

I did my first MH deal with no money. I had the seller sign an option to buy contract for (2) weeks, then I advertised it and found a buyer. I sold it for twice what I had to pay for it. I borrowed the sellers money from a friend, paid the seller, met with the buyer later in the day, collected the money, then paid my friend back.


#2

Lonnie Deal Made - How much should I ask? - Posted by John Katitus

Posted by John Katitus on December 09, 1998 at 02:13:03:

Ideas from experienced MHers-

Bought my first mobile in a small, nothing kind of park. A great area, though, as there is a lot of small industry and commercial work nearby. It’s an older two bedroom model in very good condition. Bathroom, kitchen, are all nice. She asked $3900, I paid $3300.

What price and terms do you recommend? Thanks.


#3

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.


#4

Re: Lonnie Deal Made - How much should I ask? - Posted by Dan (NC)

Posted by Dan (NC) on December 09, 1998 at 05:46:33:

You’re doing it backwards. First you need to know how much you can sell it for, then you figure out how much you can afford to pay for it. It varies by city, by park, by size and model, by appliances, by season, by market conditions, etc. You have to analyze all these factors and more before you buy. Good luck.


#5

Re: Lonnie Deal Made - How much should I ask? - Posted by Sonia(VA)

Posted by Sonia(VA) on December 10, 1998 at 20:19:14:

Are Lonnie Deals done with no money down, or must you have some cash(besides a nominal earnest money deposit)?