Posted by David Alexander on March 14, 2000 at 21:54:37:
Carey, I apologize, somewhere in my fast reading I read ti to say that only 8k was owed. the only thing you could do here is to sell the home for 20k plus and line up outside financing for your buyer from conseco. That would be jacob that could probably answer that question. Sounds like a long shot deal, probably not worth the time unless you had a preapproved buyer and you new what the home was truly worth.
David Alexander
Mobile Homes…when to know if a deal is REALLY worth it? - Posted by Carey_PA
Posted by Carey_PA on March 14, 2000 at 14:13:08:
Hello all,
I had a woman call me yesterday about her mobile home that she needs to sell ASAP. (she’s paying on her new home she just bought PLUS she’s paying lot rent on the mobile and making monthly payments for the mobile itself)
Anyway, she was actually a referral from a very close friend, so I’d like to help her out if I could.
Here’s the situation, her and her husband owe around 13K on the home, they want 14K (but she recently left me a message saying if that wasn’t good for me than we could talk)
The loan is assumable if you put 5% down. (she wants the home TOTALLY out of her name) Now, I’m thinking there is NO way that she’d give me the home for 5k or less because she’ll STILL owe 8k on the property, so I had a thought,
is it possible for me to sign an option to purchase the home by assuming the loan and then i in fact go out and find someone else that would qualify to assume the loan and live in the park and then could i assign them my option contract? What do you all think? Is it too much work for too little profit? I mean I do have 2 people right now that needed a home YESTERDAY, but I’m not to sure about their credit situation, one guy had problems because of his past marriage and the other guy is self-employed! (they both only have $1,000 or so to put down too, so if they put down the 5% with the mortgage comp. that leaves only $350 bucks for little ole’ me!) I would try to get them to come up with another $500 though…but is it more hassle than it’s worth??? Remember, I am really only even thinking about it this way because it was a referral from a good friend.
Thanks in advance,
CAREY
Re: Mobile Homes…when to know if a deal is REALLY worth it? - Posted by David Alexander
Posted by David Alexander on March 14, 2000 at 18:17:37:
In most instances I’d agree with what has been said, except that I have not heard a few things mentioned.
What can you Sell this home for? And what are the payments on the remaining 8k. How old is it. How much financing could you put on it( a question for Jacob ). so that means what is the size, model, make, etc.
It’s not a Lonnie deal, but the fact is soon they are going to have to do something with it, the lot rent will eat her up.
Maybe get it under contract to buy and then find your buyers qualify them, sell the thing for 15, 16, 20k, dont know you havent said. But a 1,000 down and 8k or so on the backend doesnt sound like a bad deal to me, as long as you dont make more than a few phone calls.
What about selling a Partial off, find an Investor that wants a payment stream at a good yield.
Bottom line is what will it sell for, with financing?
David Alexander
can you say “no”? - Posted by Laure
Posted by Laure on March 14, 2000 at 17:42:54:
seems to me they have two choices, take a loss on the home to you, or ruin their credit for a very long time by letting the lender take the mobile back.
Tony is right. These are problems these people have made for themselves. I try very hard to help people out of their jams, but not at a financial risk to me. If there is no profit, it’s a risk. There is only downside potential NO upside…upside is for everyone else but YOU !
Offer them the 8k figure you need, then walk.
Laure 
Re: Mobile Homes…when to know if a deal is REALLY worth it? - Posted by Tony-VA
Posted by Tony-VA on March 14, 2000 at 14:53:11:
Hi Carey,
As I posted down below to Jason, I am not a big fan of these type of deals.
A couple of things jump right out that should consider. It is nice to help other people out but it is not good business to assume their problems for them. If they bought another house before they sold theirs, this is a problem they created themselves. This should not receive much sympathy from us. Living beyond ones means is not a disease, it is a self inflicted wound.
Next. You will find that there are many people out there who need homes like yesterday. This too is generally a self inflicted wound. If you or I needed a home like yesterday, chances are we would have been looking for one last month.
And yet still. These two unqualified (both credit and with the park) buyers say they have $1000 to put down. You came up with the number of $350 left over for you after they pay the downpayment to the finance company. What about the lot rent, lot rent deposit, sales tax etc…??? These same people who forgot to look for a home last month will also forget that they will need money for these costs as well. I am willing to bet that they got a tax refund of a little over a grand. They are now feeling like millionaires. That feeling is one we all enjoy. We begin to dream of all the things we could do with that money. Just be sure that these people are not still dreaming before you put your name on a $13,000 mortgage.
Please read my post below to Jason to get a few of my other opinions on the potential downfall of deals like these. As I mentioned in that post, some people do make money on these deals. I feel certain that they know all their costs and risks before they go into these deal. For your sake, please be sure that you do. Again this is just my opinion, and opinions are like belly buttons, everybody’s got one.
Best Wishes,
Tony-VA
ps. Sorry Jacob, I couldn’t resist this one.
Re: Mobile Homes…when to know if a deal is REALLY worth it? - Posted by Carey_PA
Posted by Carey_PA on March 14, 2000 at 19:37:30:
David,
Here’s some more info: it is a 1989, 14x70 Skyline. 3br, 2ba.
The loan balance is around 13k (she called me and said she is getting the pay off amount) the payments for the loan now are $223/month at she said either 10 or 12%. She said this $223 includes a life insurance policy just in case her husband dies.
I’m positive I could sell this home for $15k with financing. (probably even more, but most brokers/dealers in the area would sell this thing for $20K+ but they have it on the market FOREVER!) This home was ORIGINALLY listed with a broker for 6 months and it didn’t sell that’s why the woman called me. The broker wanted 22k for the home.
Is there anything else you needed to know? So what exactly are you saying about the remaining 8k? Are you saying for me to give her $5k for the home and then what??? (i’m confused about the 8k that you mentioned, I know that that’s what will be left on the loan, but how would I handle that?)
Thanks David and everyone else that has answered,
CAREY
Ditto - Posted by Jacob
Posted by Jacob on March 14, 2000 at 17:57:45:
There are currently 456,456,456 people in this situation (o.k., not an exact figure.) Get my point? I think it was my friend Dirk that mentioned he gets 50 of these type calls a week. I can second that, and I’m sure Tony and many others can as well. This happens when you finance long-term a depreciating asset.
You desire to help these people is quite noble. Keep in mind I am the one that advocates us knowledgeable investors doing our part to help others whenver possible. I just never said we should get into a bad situation to do that.
While it isn’t my place to judge, these people could have done a better job of planning. I really don’t feel it is our place to help them out of a self-created situation.
My opinion only.
Jacob
p.s. Tony, I’ll get over it. I just need to be a bit quicker on the draw!