Posted by Lou Toback on March 01, 2000 at 18:35:40:
Raymond,
It sounds good. Lots of ways to structure deal. Ask her "if I were to pay all cash within a short period of time, what would be the least you would take? Then ask her, is that the best she can do. If you could buy the home for $2K or less on a cash basis, I would be willing to split the deal with you. We could then owner finance the home to a new buyer and make a good profit. Get back to me if you want to talk about it.
Lou T.
MHome Deal…PLEASE HELP!!! - Posted by Raymond in Charleston, SC
Posted by Raymond in Charleston, SC on March 01, 2000 at 18:19:08:
I’m a RE agent here in SC…I have just found this site, and found a mobile home I would like to try to work a deal with. The home is a 2 Bed 2 Bath 1976…ad says “good condition” (I’ll verify tomorrow) price said $4600 but the owner told me she’d take $3800 on the phone. I’m not sure how good a deal this is, the owner told me she has had it rented for $325/$350 for the last 4 years, but due to a job she has to sell it now. I’m not sure what is or is not a good deal, and since I just found out about this I’ve yet to order “deals on wheels”, so unless this house is still around several weeks from now, I’m not going to buy THIS ONE…I’m just going to check out some homes to get an idea of what kind of mobile home is at this price-range. I have another problem that prevents me from jumping into this full-speed too…I’m a rather new agent, so the income is not REAL HOT just yet, so I’m reluctant to hop into something like this so quickly. I’ve CONSIDERED finding a partner to go in 50/50 on at least the first deal, that way the risk is spread around a little. What do you all think?? Lot rent is $125/mo where this home is at. I’ve yet to make an offer on this home, but figured I might be able to talk this lady down a good bit…She said she had tryed to rent-to-own it before but the lady did not want to keep renting after 12 months, so it leads me to believe I may be able to buy this on payments myself, but I’m not sure how that would work (since I’d really be RENTING it out to the “buyer” as opposed to owner-financing a SALE at least until what I owed the current seller was paid off…Would love any advice from anyone:):)
Raymond in Charleston, SC:)
Another approach? - Posted by Jacob
Posted by Jacob on March 02, 2000 at 12:38:16:
Raymond,
How about buying it for a good price (maybe $2,000 or less) and selling it, with traditional financing for your buyer? Companies such as Conseco will loan on a mh that old (minimum loan is $5,000.)
The cash profits you make from this deal can do several things. It could allow you to go out and do 2 or 3 traditional “Lonnie” deals for a nice yield.
Karl and Tony are right on the money, as usual. More deals are screwed up by over-anxious people than I can count. Enthusiasm is a wonderful quality, but must be backed with knowledge to be used properly. Read the books, check out Ernest Tew and get a feel for the business. Then, run with it.
Good Luck,
Jacob
Re: MHome Deal…PLEASE HELP!!! - Posted by Tony-VA
Posted by Tony-VA on March 01, 2000 at 20:59:12:
Karl is correct. You need the education to properly negotiate and close this deal. Deals on Wheels will provide you with what you need to know. Little things like: will the Park Manager allow you to do these deals in their park? Will the PM let you keep the home in the park? Does the seller owe back lot rent?
There are many similar questions that need to be addressed to be certain that you can even play ball in this park. As an agent, I think you will really get a lot out of lonnie’s book. It should be a book that is right up your alley. Don’g get me wrong, few lonnie investors are agents, but I would have to believe that since you now make your living through sales, you will find lonnie deals to be an easy transition.
Additionally, lonnie will show you how this business can provide you with a steady cashflow with no landlord headaches. This steady cashflow can help offset the ups and downs that Real Estate Sales may experience.
Best Wishes,
Tony-VA
Re: MHome Deal…PLEASE HELP!!! - Posted by Karl (Oh)
Posted by Karl (Oh) on March 01, 2000 at 20:25:54:
In my opinion, the best thing for you to do is not say anything to anyone until you’ve read Deals On Wheels. (Wouldn’t you agree with that, Lou?) When I ordered the book I got it in a couple days, if I remember correctly. After reading it, you’ll know exactly how to approach this deal, including the best way to bring in a partner. You can read Lonnie’s book in one evening. In fact, read it a couple times. Then go do a deal. Take the time to learn what you’re doing before you start.
Karl Kleiner