Posted by Earl on January 30, 2000 at 11:30:16:
Jim, why not just sign the title over to the new buyer. There should be a section where you can list yourself as the lienholder on the title, just like any other bank or finance company. The buyer is on the title and you are listed as lieholder. The buyer can not obtain clear title or sell until he has paid you off.
Earl
Mh deal, Should I take it? - Posted by Jim MI
Posted by Jim MI on January 29, 2000 at 12:28:36:
This is my first deal and I would Like some input.
The Facts: “73” Cambridge, 2 bed, 2bath 14x70, 8x21 deck, newer carpet kit & liv rm. shed. newer furnace & h/w.
includes stove ref w/d window treatments couch 2 lazy boys, dinet set. Layout: bedrooms at each end. open kit & liv.rm.
Doesn’t need any work.
Original asking $9,500 last ad 7,500. motivated owns another house just bought, making both payments.
lot rent $435
Deal: $4,000. Terms $3000 up front carry rest 6 mos.
This is in Oakland county MI.
Whata ya think?
Does Choice Homes own that park? (nt) - Posted by JHyre in OH
Posted by JHyre in OH on January 31, 2000 at 15:30:43:
nt
Re: Mh deal, Should I take it? - Posted by Skip (CA)
Posted by Skip (CA) on January 30, 2000 at 01:14:53:
Jim:
Reif gave you good sound advice. Besides that, you didn’t say anything about talking with the park manager. Can the unit stay in the park? Is the pm willing to allow you to do business in his park? Or will you be stuck with an alligator? Have you run any test ads to see how the market is? What is the comparable 2br rent in this area? If you sell @ $9,000 the mo. payment would be $240 (48 mo.), $302 (36 mo.) or $427 (24 mo.) all @ 12.75% interest. How does this, added to space rent, compare to apartment rent? Did you negotiate the $4000 price, or did the seller say he’d take that as a quick cash sale? There’s alot of information that’s presently unknown. The more information you post the better your responses will be. Just my .02. Success to you!!
Skip
Re: Mh deal, Should I take it? - Posted by Reif
Posted by Reif on January 29, 2000 at 14:34:16:
Sounds like you might have a deal here, but only you can tell us.
How much can you sell it for on terms? In SoCal, a place like that we could probably sell for $13-15K with $1500 down.
Can you?
The lot rent is also pretty high (not for here, but you’re not here).
You might have to wind up carrying a note for an extra year or two longer than you’d like to make the monthly total work for your buyer (we like to keep it right around two bedroom apartment rental rates).
Run your numbers, and see if you like your rate of return.
You have a possible deal, but it is going to depend on what your terms of sale for your buyer are.
Good Luck,
Reif
Re: Mh deal, Should I take it? add info - Posted by Jim MI
Posted by Jim MI on January 29, 2000 at 12:58:57:
other comparables are for sale, for $8,500 to $9,500
Re: Mh deal, Should I take it? - Posted by Reif
Posted by Reif on January 30, 2000 at 12:02:23:
Following up . . .
>>If you sell @ $9,000 the mo. payment would be $240 (48 mo.), $302 (36 mo.) or $427 (24 mo.) all @ 12.75% interest. How does this, added to space rent, compare to apartment rent?<<
Actually, the $9K would be the note, say you sold for 10K with 1K down.
That gives you a rate of return of 93.5% - you can probably live with that.
However, that also gives a monthly nut for your buyer of $675 - I’m guessing that’s probably a little steep for your part of the country.
If not, I’d do the deal.
Reif
Re: Mh deal, Should I take it? would this work? - Posted by JIm MI
Posted by JIm MI on January 30, 2000 at 06:30:01:
The price was negotiated. Now to neg the terms. The MH can stay in the park. The park is owned by a large corp. (They own over a dozen lg. park. I’ve got a pm checking on what we can work out in another park owned by this co.) Park policy is that the only the owner of record can rent the lot and occupy the MH. My thought was $2,000 down,option on a monthly basis for the lot rent, and and a small amount each month to keep the heat on. When I find a buyer I close on the option owing $2000, which at least a $1,000 will come from the buyer. I have ads that start today. Whata ya think?
Has anyone else delt with this park policy in SE MI.?
Jim MI
Re: Mh deal, Should I take it? would this work? - Posted by Skip (CA)
Posted by Skip (CA) on January 31, 2000 at 20:03:42:
Jim:
Sounds like you’ve built up some rapport with the owner if he will take $2k down and wait for the balance. Good job! As long as the park doesn’t view this as a rental, which is what the park rules seem to be prohibiting, then your plan sounds like it might work. Another approach might be to set up a note for the owner to use in selling the MH and you buy the note @.50 cents on the dollar. Just a thought. Others with more experience may want to comment. Success to you!
Skip