Re: Non Performing Mobile Home - Posted by Jim FL
Posted by Jim FL on August 16, 2003 at 17:28:56:
As Brent pointed out, bottom line, if after 8 months of REAL marketing, the home has not sold, the price is too high.
So, you feel it is worth $80k? Why?
Where did you arrive at this?
See, value is what someone is willing to pay for it.
So, if no one has offered you $80k, then it ain’t worth $80k, simple as that.
Can you still sell it for $80k?
If you offer terms.
Oh, but wait, you want to “Cash out”, right?
Good news, you still might be able to.
Offer the home “Owner finance”.
Find someone with half way decent credit, middle of the road would get the job done.
Make sure they have income to support payments etc.
Have a mortgage broker look them over.
When you find one who only has one stumbling block, the downpayment amount, you should have your winner, if they have “Something” to put down.
See what they have for cash on hand, and perhaps anything of value.
You can have them put down their cash, buy whatever they have of value from them, and them have them pay that on the deal as additional down.
You’ll need a paper trail for the money.
You write them a check for the item, take possession of it, and then they plunk that amount more down on the house.
Could be a car, motorcycle, big screen T.V., jewelry, what ever.
People have things they can sell, beleive me.
After they have say 5% down, you create two notes.
One for 80%, and another for the remaining balance, 15%.
Get the deal done, and begin the payment process.
As you do that, market the note.
You might even find a note buyer ahead of time who will fund the note, albeit at a discount to face value, especially with no seasoning.
But, cash will come to you that way.
You keep the second for cash flow, or sell it, but bear in mind, these sell for STEEP discounts.
You will have cash then, just not the full $80k, which the home is not worth anyway, at least for a compareable.
I’m of course assuming here the home will appraise for the $80k?
Otherwise you’d have not set that as a price, right?
P.S. I forgot to mention the item they would sell to you, if so inclined.
Make sure to buy whatever it is for a discount, and sell it after the deal, for more cash.
If you don’t want to mess with that, help them find a different buyer.
Pawn shops aren’t great for high dollars, they pay discounts of course.
Consignment and antique shops are a good source sometimes, for potential buyers to liquidate things, to get you cash.
Also a good source to advertise at for sellers…save that for another post though.