I’m with David here - Posted by Dirk Roach
Posted by Dirk Roach on May 24, 1999 at 05:49:04:
I am with David here. The $85.00 space rent made my eyebrows raise, as did the statement “The owner used to rent it out but got sick of the landlording problems”. The reason being is I don’t like my Lonnie’s to be in a park which allows rentals. In my market Parks which allow rentals of mobile homes, bring in people who don’t have the same interest in maintaining the look of their home and space. This translates as a much harder sell for me. When Mr and Mrs. Jones pull up, I want them to fall in love with the park. I want them to fall in love with the Mobile Home. I do not want them just to settle for something for the present time. I want them to be happy. Happy people, pay on their note.
Now as for the option game in Mobile Homes I feel (and remember my opinion and 40 cents will by you a cup of coffee), that it is one of these things which in theory can be done. It looks good on paper, however in a real world scenario most often will fall flat.
Cash talks, we know what walks.
Okay now in your post you state that this Man wants to get $3000 for his home. Now that is an interesting number, why does he “need” $3000?
Also you state that you don’t have $3000 to pay for this Mobile Home. How much do you have to get into this deal (providing it is even a deal)? Where can you find the money, to cover the difference? Who do you know who wants to make a 15% return on a couple of grand that they have in the bank as opposed to the 4% that they are making now in their savings account? A friend or buddy? Maybe a relative?
Have you anyone lined up from existing advertising or a test ad which you have run, that might be interested in living in this Mobile Home, and in this Mobile Home Park, which is 20 miles out of town?
These are all questions which need to be addressed, for this deal to succeed, plus add the ones David Alexander mentioned. Back space rent, current taxes, will the Park Manager play ball etc.
Okay also you mentioned that this would be your first deal. If you haven’t picked up Lonnie Scruggs’s books, do so. Otherwise it’s kind of like trying to get your drivers license without knowing how to drive a car.
Also don’t fall in love with a deal. Don’t get excited or emotional. Look at the deal from all angles, if it is a deal, act on it, make it happen. If it isn’t one, don’t. Spend your time and energy in finding a situation which will be a deal.
Anyhow Steven, that’s what I think, keep us posted on what happens and what you decide to do, Good Luck,