Manufactured Home Repo - Posted by Ben W

Posted by GL on February 06, 2000 at 20:47:59:

Right off the bat the dealer had to pay the manufacturer for the MH. Plus a lot of other expenses. And he either had to borrow money to be able to finance it, or he used his own money which deserves a certain interest rate. So he hardly got it “free”.

However most of your thinking is irrelevant. The question is, what is the place worth? You have to figure that out. What could you get for it? How about if you fixed it up? In that case figure out what you could get fixed up and deduct the fixup cost to get an idea what you could pay. Make sure your buying price is far enough below the selling price to give you a decent profit.

You have to know what similar places are going for around your area.

What really makes this work is that the vendor (dealer) has the leeway to write his own ticket on this one. He can give it to you for $1000 down with no qualifying or whatever he likes. And it seems he is willing to give it away cheap to get rid of a headache. Well if you can pitch in and cure that headache you can get a deal.

What is more, if you make it easy for him, he will remember that the next time he gets a headache. You could be setting yourself up to get all the cheap but nasty mobile home deals you can handle, on your own terms.

Manufactured Home Repo - Posted by Ben W

Posted by Ben W on February 06, 2000 at 16:56:05:

I have a question:

I’m looking at a manufactured home that was repo’d by the company that sold it–they are their own bank, so they financed it themselves–and i am a little confused about how to evaluate the situation, as i am new to real estate investing (still looking for my first purchase)!

It is a land and home (28x48, 3BR, 2Bath, 1350 sq ft) package, and is 4 years old. The dealer who sold/repo’d it says the land and home is listed for 68,000, and is assumable (460.00/mo pmt) at 7.75% without qualifying. They want 1000.00 down.

The home is in good condition overall–except for badly damaged blinds that are torn up, a yard that needs a good bit of work/debris removal, and a skirting that is totally destroyed. The inside is in pretty good condition, and has no problems i can detect.

My question is this: since the dealer financed the home himself, the buyer owned it for 4 years, and then the dealer took it back, what kind of offer should i be looking at making to acquire this property?

It doesn’t appear to me that the dealer would have lost as much money on this deal as a bank would have, had they lent the money–since they lent the money to the buyer to buy the house from themselves, they really weren’t out of pocket the money, were they? It seems like a deal done more on paper than involving money actually changing hands.

I’m not sure how negotiable the 68,000 asking price would be in this case. He did tell me that since he was the one who financed it, he could pretty much call the shots, and i wouldn’t have to qualify. Would that freedom extend to the asking price?

I’ve considered giving him the asking price, but asking for no money down–would that be giving him too much money for the property? I’d appreciate some insight–i’m new, and i think i’m psyching myself out!!

Thanks a million, all you who reply! Sorry this is so long!

Ben W
benwalke@hotmail.com

Re: Manufactured Home Repo PLEASE HELP!!! - Posted by Ben W

Posted by Ben W on February 06, 2000 at 16:59:21:

Please help me any way you can!

Re: Manufactured Home Repo PLEASE HELP!!! - Posted by MIKE

Posted by MIKE on February 09, 2000 at 21:47:35:

DO NOT DO ANYTHING YET! REPOS HOMES ARE OWNED BY THE BANK. THE BANK WILL LOWER THE PRICE AS LOW AS A DIME ON THE DOLLAR. THIS IS NO JOKE. GIVE ME CALL. I AM SURE I CAN SAVE YOU MONEY. 850-567-8269