***MH land/home deal HANGING -NEED HELP!!** - Posted by charles

Real Estate Investing
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Posted by DougO(NM) on January 15, 2000 at 24:51:07:

As far as repos…cash is KING. Line up the cash before you start talking to lenders. You will want to start out looking in the phone book under Manufactured Home Loans…Possibly GreenPoint (formerly BofA) and Conseco (formerly GreenTree). You can always ask dealers who the lenders are in the area and their phone numbers. Before you buy any house to put out there, scout around to see what the predominant home is in the area. Single section or multi-section ? New or old ? We have bought most homes out of the Quick Quarter or Thrifty Nickel. We’ve also found homes in Parks that needed to be moved, and have even bought “subject to” an existing loan where we just had the buyer sign a power of attorney to deal with the title and we made payments to the lender. We paid to have it moved to our property, and inthat case we rented it. Still rented as a matter of fact ! You can get a land/home package through most lenders, however you will have to install the home on a permanent foundation and declare it as Real Property

2

*MH land/home deal HANGING -NEED HELP!! - Posted by charles

Posted by charles on January 14, 2000 at 14:28:18:

ok, ifound a distress piece of land 20 miles outside Tucson,AZ- its a 4.13 acre parcel- the comps for land alone are at 34K-
water,elec, phone is all to the lot line.
The sellers are 20 months behind, foreclosure is pending.
I offered them $1500 to walk, + a $1000 trust deed to be stuck on the land as an additional blessing. I will assume the 1st of $14,500
I am borrowing $6700 from a friend to reinstate the land and give them this $1500.
Problem, i offered him too much i think on his return.
I offered 125% ie. his principal back, bringing it to a total payback of $15,025.
This will be a 2nd deed of trust and the $1000 a 3rd,.

Numbers after reinstatement:

Balance on 1st deed of trust $14,500
I will owe 2nd deed of trust $15,025
3rd deed of trust (sellers) 1,000
TOTAL

As soon as we close, I will move a repo’d MH (1998 singlewide, good condition) onto the land which will cost $42,500 INCLUDING ALL HOOK-UPS, SEPTIC, ETC ETC financed over 30yrs

SO MY TOTAL “IN” ON THIS WILL BE $73,025

I am now finding out that whereas i thought the comps were $90,000 or so, they are really only $80,000 -
THE DEAL NOW SEEMS TOO THIN!!! I OFFERED THE INVESTOR TOO MUCH RETURN!
PLEASE HELP! I have deposted $200 in escrow, and I am thinking of backing out!
Whats my solution/??

Please email me at cvamadeva@aol.com

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Re: *MH land/home deal HANGING -NEED HELP!! - Posted by DougO(NM)

Posted by DougO(NM) on January 14, 2000 at 16:07:24:

Yes, think you were a bit generous, to say the least. I certainly would not condone a deal like this. Like it or not, you are going to have to eat some crow, and tell the investor that you made a mistake and that since you want to be a person of your word and pay them back as promsed, you’d rather not do the deal under these terms if it doesn’t look like it will fly. For $6,700 behind a $14K, they’d still be in ok shape if you tank. I wouldn’t pay any more than the rate on a credit card. (The credit card is unsecured, the investor is not!) Can’t you get it on credit card or from someone else ? Next, why so much for the repo home ? I can buy a brand new doublewide for $30K! With all the repos out there these days, I would be looking to spend no more than $20K on a singlewide set-up. What is the cost of the set-up, septic, etc. ? Last, is this for you to live in or resell ?
Doug

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Re: *MH land/home deal HANGING -NEED HELP!! - Posted by charles

Posted by charles on January 14, 2000 at 20:52:17:

Doug
i agree with you- i dont know what the heck i was thinking offering that kind of return.
I guess the comps in the area in the range of the sale price i would like to ‘flip’ it for are newer homes.
Please email me and give me some ideas on where to go for the repo’s-
i am wondering if a MH financing company would finance the land with the home as one package ??
Charles
Tucson, AZ

PS- dont plan to live in it- just resell it, and maybe even do the loan for the buyer since I am a Loan Officer.