Posted by Jim R on March 23, 1999 at 12:50:14:
Your creative thinking sounds good. I’ve also been doing some ‘Lonnie deals’ and creative financing on MH’s over the last few months… The only suggestions I have are that: 1)if the Seller is moving into a townhome by April 1st, he may be quite motivated to get the MH sold immediately and therefore negotiable. You might talk with him & see if he would be willing to take $150 - $500 less in return for getting all cash, and also since you are ‘taking the risk’ of providing credit to the new Buyers. (He likely will have difficulty getting very much cash from buyers for this price range of MH - depending on its age and condition.) If so, you could pass part of this on to the Buyers, making the deal more attractive to them and/or increase your profit.
2)You might also offer the buyers several alternatives for financing, depending on what your situation & cash flow objectives are - offering to finance over 6 mo. or 12 mo. etc. at higher prices (and profit). Although $450 return on $1750 is certainly ‘good enough’.
Best of luck with your deals…