Posted by Rod - Mo on October 22, 2003 at 20:00:47:
Ken,
Your next step should be to talk to the PM. That is an absolute must anyway, even if you were planning to move it. The issue may be back lot rent, which could mean there is a lien.
As for her, since she can not be up front, be careful. She may show a clear title, but verify with your state’s agency that titles MHs. Inspect the home before cash is paid, and in a deal like this I would be prepared to change the locks immediately after she walks out the door.
Also, get on the best terms you can with the PM. I like to make sure they understand there is cash in it for them and if they arrange the sell, they get extra. It always helps if the PM is keeping an eye on the place while it is vacant.
I got a call from a very motivated seller today. She has a '81 14x70 Winsor that is paid for. She’s “asking” for 10k. It in move in condition with all the appliances. The owner states that she has to be gone before the 1st of November,caused by personal problems with the PM. The owner is moving in with her boyfriend and claims that the place has to be moved of it will be destroyed. I want the property and this will be my first MH deal. I personally want the MH to stay where it is. I’m thinking about negotiating with the PM myself to keep it in place. What would be the best way to work this deal. I was thinking about a quick flip of should I sell it with a low down payment? What is the cost of moving a trailer this size? All responses are welcomed. Thank you all!
Posted by phil pelletier on October 23, 2003 at 24:23:15:
You have received good advice here, better heed the warning signs. Remember, exactly HALF of what your seller tells you is correct…the other half is, obviously WRONG!. Nobody destroys a livable home already located in a park. At some point (like say, NOW for a 1981 singlewide) the fact that the home is already located and set up is the homes greatest asset. The set-up is worth more than the home itself! A park looks to acquire these type of homes, not destroy them! The moment that home is destroyed, the park owner’s equity in the park is diminished by $20,000 to $30,000 dollars (depending on the monthly rent payment). Rest assured, if the home is livable, the place will not have to be destroyed or probably even moved, it will probably just have to be paid in full (back taxes, lot rent, etc).
The home is worth no more than about $1500-2,000 on the wholesale market (and only if it has 3 bedrooms, $1,000 if it has only two bedrooms). That is all you should pay. The exception to that rule is if the rent on the space is less than $100 per month. Then you could pay more, because you will probably be able to get about $400/month for a three bed place, so $300/month would go to you, so I would be willing to pay up to about $3,000 for that kind of cashflow, but not much more.
There are a lot of deals out there that may involve less risk. Call the Manager and find out the real story.
Posted by Rod - Mo on October 22, 2003 at 17:57:38:
Ken,
What are the problems with the PM? Why would it have to be destroyed if not moved? Do you want it bad enough to pay too much? As has been often said here before, you don’t have to buy, she has to sell. And you don’t make your money selling, you make it buying. Where is it located, as area can make a huge difference.
She/the owner would’nt tell what the problem was between herself and the PM. She never went into why the the MH would be destroyed. As for me I’m trying my best to give the lowest amount of consederation possible($100-600). I don’t have any problem with walking away from a “deal”. I wanted to get input on the best way to persue the situation