Posted by johnman on March 31, 1999 at 14:48:21:
Dan,
I will proceed on my research once I receive a phone call from her. I appreciate the input.
Johnman
MOBILE HOME L/O ###### - Posted by JOHNMAN
Posted by JOHNMAN on March 30, 1999 at 22:47:55:
Hi everybody,
I received this call today from this lady and she said she has a doublewide and wants to sell it. Here is their situation. They are one month behind on their mortgage. She said the mobile home is too big for them. They want to move into a singlewide. They owe around $40K, they want to sell it for $65K. She said with a little fix-up (whatever that is) it will probably sell for about $70K. I told her politely that I am a real estate investor. I explained what that was and I did point out that there isn’t enough profit in the deal for me to purchase it outright BUT I said would you consider L/O? I explained. I also asked if they are capable of renting a singlewide for the moment while I sell the prop to a tenant/Buyer. She said yes. Here is the solution, I said you could rent out a singlewide for the mean time, lease/option the prop to me at an agreed upon price and I will gurantee the mortgage and bring it up to date. She saidit sounds good. She will discuss this with her husband. The reception was good because they need out and I came up with a solution. The monthly payment is killing them according to her. The payment is a little over $500.
I have never bought a mobile home before. What kind of paperwork is involved here? Is this just like buying a house , title and all? Please guide me through the process of purchasing a mobile home.
Thanks folks,
Johnman
Re: MOBILE HOME L/O ###### - Posted by Alex Gurevich, TX
Posted by Alex Gurevich, TX on March 31, 1999 at 08:27:20:
If you agree to pay more than a loan balance, sounds to me you are about to pay an aweful lot for an MH. The loan balance is fairly high, which tells me they must have bought it just few years ago. Can’t people buy half decent homes in your are for about 70K ? If so, why would they mess with MHs ?
Remember, in an average economy a house will add about 20-30% in equity over a period of 15 years it takes to pay off the MH, while a MH will drop about 70-80% in value.
Re: MOBILE HOME L/O ###### - Posted by Dan (NC)
Posted by Dan (NC) on March 31, 1999 at 07:14:49:
Consider this: find out what kind of SW they need (steer them towards one set up in a park) and then tell them you may have just what they are looking for, and you’ll give them that home as your down payment, plus you will pay off their loan (or take subject to). Go out and find one for sale and make a lonnie deal offer on it. Tie it up for a few days so you can get your DW sellers in to see it. If they like it, buy it cheap, and use it at closing as your down. You may be able to pick up a SW for 2-3K that will satisfy them. But, unless you’re sure about the value, fix-up $, and your ability to quickly retail the DW, I’m not sure this is a good one to cut your teeth on. Yeah, there may be some equity there, but even more than with stick-builts, mobile home “equity” is often illusionary. Know your backend on these real well before you commit.
Re: MOBILE HOME L/O ###### - Posted by johnman
Posted by johnman on March 31, 1999 at 14:45:55:
Alex,
She told me that her hubby bought it in 85 and refinanced the note.
Thanks for the input.
Johnman