Looking for advice working 1st Deal - Posted by Gerry

Posted by Jeff on January 23, 2002 at 14:50:09:

I’m working on a similar first deal here also… please keep us posted and let us know how it goes!


Looking for advice working 1st Deal - Posted by Gerry

Posted by Gerry on January 23, 2002 at 14:07:02:

I have both of Lonnie?s books and have read them a couple of times.

I made up my own cards on the computer and will use them until the printed ones get

I ran an ad in the local paper `that reads : WILL FINANCE Mobile home 14X70 3Br 2
Ba, $9600 Flexible terms?. Of course I don?t have one yet but am working on a 90
14X70 3Br 2Ba. The owner wants $6900.

I have received several calls including one that can put $4500 down When He called I
told him that MH had a contract on it but it had not gone through yet, and ask for his
name and telephone. He gave me his home number Mobile number and said please don?t
forget me, I have 3 children and am renting a 2 bed room house and there is just not
enough room (So I am working VERY hard to get this 90 model.

Have talked with the Park owner (small 12 units) and he says that the MH can stay. Rent
is $125 mo.

My wife and I met with the owner today. We used Lonnie?s Squirrel Dog Technique and
that worked very well. The owner has owned this home since new and this week made his
last payment. The home is in very good condition, no floor problems, roof has not leaked
and has been coated within the last year, The interior has some damage but mostly normal wear and tear that is acceptable.

This owner has just purchased a home and will close the first of Feb. When we entered
the first thing you see are boxes everywhere. They are ready to move. and the first thing
he tells us is about the new home and that ?They are motivated sellers? Now how about

After looking at the MH and my wife doing the Squirrel Dog thing. I told the owner that
I bought and sold used mobile homes and could pay him cash, then I ask if I could get
him cash in the next day or so what would his best cash price be?

He said with or with out the washer and dryer? I said either way, he answered $6900 with
$6700 with out.

I then told him that I have a partner that I work with and that the MH being as old as it
was and the repairs that would be necessary I did not think that my partner would go
along with that price because once we did the necessary repairs ran ads etc. there would
not be much room for profit. I then gave him my card and told him that if he could do
any better on the price to please call me.

The seller now has 9 days before he closes on the house, the MH has been for sale for
almost 3 months. So I figure that he has had no one that could afford to pay cash look at

My intentions are to wait until next Tuesday ( that will be 2 days befor closing) and
contact the owner and ask to see the MH again. Then my wife and I will repeat what we
did today and see if the price has dropped any.

I have talked with my buyer 2-3 times since he called and I will keep calling him until I
can put him in a MH. I don?t want to lose a $4500 Down Payment.

I have $4500 or less in mind to purchase the MH. If I can do that, that will give me my
entire investment back and have $5100 at12.75% which will be $171.23 per month for 36

So I have a motivated Seller and Buyer. This being my first deal , is there any advice on
how I should handle the MH owner from here, or any advice on what I should or should
not have done thus far?

I look forward to hearing what you have to say.

And Lonnie if you are out there how about a critique!

Re: Looking for advice working 1st Deal - Posted by Chuck (AZ)

Posted by Chuck (AZ) on January 23, 2002 at 15:02:31:

Personally, I’d try this.

Contact the seller and tell them you’ll pay $4,500 now, or $6,700 later. They’ll wonder why.

Simply tell them that you don’t it’s worth more than $4,500 cash “as is”. If he’s willing to pay for the repairs, you’ll consider going the differance… and if it goes there you can pay that differance out of the payments YOUR buyer makes to you. Naturally, since the home will need no repairs at that point, you can command a higher selling price - say $9,000 plus interest.

Chances are he’ll simply want to be done with it, as he’s in the middle of moving into the new home. That as we all know has it’s own unexpected expenses.

Cash talks… wannabe’s walk.