Re: Mobile Home Repo - Posted by Tony-VA
Posted by Tony-VA on March 28, 2000 at 06:36:43:
I agree with Jacob, in many ways repos can be easier. But in red tape, they are always slower. The motivation with repos is different. Emotion is not as big a factor with financial instititions as with FSBO’s.
Do some homework on this home. Knock on the neighbors doors. They can tell you more than you want to know about abandoned homes. Then check with the park manager. They usually will tell you exactly how long it has been a repo, and how much lot rent is due. Make certain the home can stay. Find out who will be responsible for the back lot rent. Include this in your bid. I have found that financial institutions are not always prompt in paying lot rent. I think they hold out for the sale of the home to reimburse the lot rent.
When you make your bid, do not be afraid to bid low. Since you won’t usually get a chance to go through your Lonnie routine of getting them to name a low all cash price, you need to bid the number you were shooting for. Bid odd numbers as well so that it looks as though you thought about this price down to the very last cent.
Put a time frame on the bid. I usually give 48-72 hours so that I don’t get shopped too much or get a call a month from now. Admittedly most of the repo’s I buy and bid on are ones that have been vacant for a long time and the park is pressuring the finance company for lot rent and no bids are coming in on the home. Some companies require 3 bids. I think this goes out the window after some point in time. Usually my bids have been accepted immediately. I recently bought two mobile homes this way. One was a 1986, the other was a 1984. I paid $500 for each. They had been sitting for months and were in need of repair. I sold them “As Is” the next day for numbers that make the calculator smoke. This all happened because I did exactly as Lonnie teaches. I did some homework, found out what the motivation level was. I found out what the finance companies might be willing to let them go for, and made a cash bid. I then spent 4 hours changing a door knob on one home. It took this long because people were lining up to look at these homes. I had only put the sign in the window ten minutes earlier. (Tax refunds are very good for our target market!)
Don’t get intimidated with finance companies. Think of it as an opportunity to deal in a strictly business deal. Make the numbers work for you. Build in holding costs and some money for clean up and fax that bid in. Remember, you are the one with the money. You don’t need to buy, but they need to sell.
Best Wishes Carey,