Posted by JHyre in Ohio on April 25, 1999 at 09:25:13:
Well, I spent all day yesterday in Toledo, 45 minutes to the north, searching for Lonnie deals. I found ONE park that has more MH’s than my ENTIRE county…that’s alot of wobbly boxes! I found 2 hot potential Lonnies…waiting to talk to the park manager to make sure I can do this in his park. Both involve motivated out of state owners. Found several “warm” deals that need to cook a bit longer before they’re ready.
Now for the specific question itself: Found a 1989 14X70 3BR in pristine condition- and trust me, I LOOKED for something wrong. The owner is very good with his hands and has actually improved the thing. The owners are approved for a home that they desperately want (4 kids in a MH!). BUT the bank requires them to sell the MH…park doesn’t permit leasing of any sort. The original purchase price was $20,000 and the loan balance is down to $15,000. They are willing to walk AND give me $2,000 for it. I could sell it (with financing, of course) for at least $18,000 in that park, maybe up to $21,000. So the deal is too skinny to do a classic Lonnie- I won’t double my money and would have to put ALOT of money into one MH. Several thoughts have occurred to me, including:
Get an option at $13k or less, see if I can get bank to let a buyer to assume, and assign assumption for a fee.
OR
Call the financing company and see if they would sell the note for a big old discount. Any tips on this latter strategy? Any particular way to approach the financiers? Chances are I need to get Terry Vaughen’s course…I understand that it addresses this issue point blank.
Thanks,
John Hyre