Posted by soapymac on May 26, 2000 at 10:05:13:
the back end of a “Lonnie Deal” in place by your post; you’ve got a handle on the market in your area (“it is in a 55 or older park, which is about all that is here in my area.”) You also have an idea of the selling price.
What you don’t have…at least from your post, anyway…is knowledge of the number of buyers that are out there for this market. Why not run a test ad?
“Seasoned Citizen? Clean 2BR/1BA home in a ‘55 or older’ park. No bank - owner will finance. Call XXX-XXXX…”
or something like that. Before you invest your money, find out if the market is there. Then you will know which way to go with this.
Roy MacLean
“soapymac”
Need incouragement on first deal - Posted by Jess_Wa
Posted by Jess_Wa on May 26, 2000 at 09:24:53:
I am looking at my first deal, but it is in a 55 or older park, which is about all that is here in my area.
The deal is a 1970 14x70 2bed 1 bath in clean condition.
average retail for this is around 9000 or so. pURCHASE PRICE IS 4500 and it can stay in the park.
I am just a little nervous because it’s only 1 bath and I have to market it to 55 or older. I have read Lonnies chapter on adult parks and its very good. His books are more than worth the cost.
I just need some encouragement from those who have done a number of deals in adult parks to help me take that step to buy, as this will eat up most of my start up money I don’t want to be stuck with it around my neck for too long befor it sells. In addition the lot rent is 240 though in a nice park so don’t want to be paying that too long. Then there is the wife who is thinking I have just lost the rest of my mind.
Thanks for your help
Jess from Washington
Go To… - Posted by Dirk Roach
Posted by Dirk Roach on May 26, 2000 at 17:07:07:
www.bigbook.com
click on “search by distance”
enter in your house/office whatever
select a radial search of say 10 or 20 miles
CALL THE PARKS THAT POP UP
and mark which are 55+ parks and which are “all age” or “Family Parks”
I think that you will be surprised at the number of “family” parks.
MY PERSONAL OPINION:
I Avoid Senior parks like the plague. I have only done 3 deals in senior parks and found them to be a pain in the neck, on so many levels that I won’t get into it here.
HOWEVER I also remember myself saying “There are only Senior Parks around here!!! Where can I find some deals?!?”
Needless-to-say I have found MANY MORE THAN I CAN HANDLE in the family parks in my market; which is to say a market noted for it’s “snowbird” Community.
Hope this helps,
Dirk
Re: Need incouragement on first deal - Posted by kristine
Posted by kristine on May 26, 2000 at 14:34:18:
Definitely run a test ad and be prepared to talk with these callers. Make sure you talk to the park manager about what formula they are using to figure eligibility. In my area, the better parks don’t allow subleasing, rental or co-signing on the lot rents. Many buyers that need or are attracted to terms won’t qualify for the park. But that doesn’t mean that there aren’t good buyers for your home–you just have to pick the right one and weed out those who are too risky. Just my two cents.
I think it is a good idea to remember that getting the first deal done is the biggest hurdle. Regarding the doubtful spouse: put yourself in her shoes and think about what it looks like. It looks like a scheme. Those of us going out there and trying to buy and sell know otherwise. So remember, without doing the deals herself she has no real information. Ask for some time and autonomy and that the two of you, together, will review the “feasibility” of this venture at a later time (make sure you set a reasonable deadline for this). Just my two cents on marriage and business.
It can be done! Call the newspaper today!
Sincerely,
Kristine
Learn your market, then go for it - Posted by Blane (MI)
Posted by Blane (MI) on May 26, 2000 at 13:15:34:
Hi Jess,
I can’t give advice about adult parks, but I encourage you to move forward to your first deal. Listen to Roy and make sure you have a market for what you’re selling. Also compare with other homes for sale in that park, are similar homes selling for $9K? Or could you pick one up for less than $4500? Marketing a 1 bath won’t necessarily be a problem, nor is it in a senior park, especially if that’s all that’s around there.
Let’s run some numbers, maybe that’ll help your confidence. Remember, Lonnie says you don’t have to make a killing on your first deal, you just have to go out and do it. Let’s say you buy the MH for $4500, and sell for $9000 with $1000 down, at the industry standard 12.75 percent. That leaves you with $3500 in an $8000 note. Even if your buyer can only afford $200 a month, my calculator tells me the note will be for approximately 52 months. That 52 month note will have an annual yield of approximately 64%. And that’s the worse case scenario!!
If your buyer can afford $250 a month, the note would be for about 39 months with an annual yield of about 78.5%. If your buyer can afford $300 a month, I’m showing a 93.6% annual yield (please correct me if I’m wrong folks). Even if I’m a little off, I’m betting it’s a better yield than a CD can give you.
As for the wife, you will just be the latest in a long line of people whose spouses (or other family) think we have really gone over the deep end this time. She’ll start coming around once she sees success and money. Until then, keep reviewing Lonnie’s books and learn your market. Let us know how it goes.
Hope this helps,
Blane