Posted by Shawn Dostie on March 07, 2002 at 13:57:09:
Nada Prices have both retail and wholesale prices.
They are a guide, not gospel, remember condition and situations are all different, we must use our skull.
You can find info. at www.nada.com
Good Luck,
Shawn
possible deal advice - Posted by RickW (VA)
Posted by RickW (VA) on March 05, 2002 at 19:48:59:
First off, I haven’t done any deals yet. We have looked at quite a few. We have several that appear to be possibilities.
This is the circumstances. 93 fleetwood 3 bed/ 2 bath in very good shape. All appliances included - Stove,frig,washer,dryer, heat pump etc. The owners haven’t lived in for 1 1/2 years and presently live out of state. Original asking price was $18,000. When I talked to them they were asking $15,000. Talked to them again and they dropped to $13,000. These figures seem way high for a Lonnie deal. I would like to offer $5000. It seems to me I would be able to get $10,000 easily with owner financing. My questions is if $5000 is appropriate offer.
I have 3 0r 4 people that seem like they could be possible owners. One man told me he had $3000 for down payment and can pay $500 a month.
I appreciate everyones help. Thanks
Rick
Re: possible deal advice - Posted by Shawn Dostie
Posted by Shawn Dostie on March 06, 2002 at 21:06:41:
The 1st thing I would check is the NADA guide for that area and see what wholesale is. Secondly, I might pay too much for any property if I already have a buyer. For example, if I gave them full price or close to, would they land contract w/ $500.00 down and $300.00 mo, then sell for $5000-$10000.00 profit at $3000 down and $500 per month. Close the same day and walk away from closing w/$2500.00 upfront profit, $200.00 per month profit, Plus interest spread ( if you negotiate 7% and charge 14%) and term (payoff 48 months) contract sale for 60 months. Be creative and good luck!
Shawn (Ohio)
Re: possible deal advice - Posted by Indiana Bob
Posted by Indiana Bob on March 06, 2002 at 08:27:35:
Rick,
I had been looking off-and-on at a 1971 2BR home in one of my parks. Owner was asking $5000, but had recently come down to $4000. I was letting her keep bringing the price down, and wasn’t sure whether or not I really wanted the home.
Last weekend, park manager told me that another couple offered them $2000 cash, and they went for it. Honestly, I hadn’t expected them to go for that low of a price, because I didn’t recognize just how motivated they were.
Needless to say, if you have a price in mind that you would be willing to pay for the home, go ahead and throw it out there. Their jaw may drop, they may laugh at you and call you names, but after several more months of paying lot rent and not finding many prospective buyers, they may start to think that you knew something they didn’t!
Good luck!
Bob
Re: possible deal advice - Posted by sean (WA)
Posted by sean (WA) on March 05, 2002 at 22:25:34:
Well, first off the only “Appropriate offer” is what you are willing to make on the home which typically is determined by what you think that you can sell it for on terms. If you cannot make double your investment then it might be a waste of time.
You might as well get comfortable with being bold and making ridiculous offers right now as you will be doing alot of it. But better yet, have you tried Lonnie’s tried and true method of asking him what his bottom dollar would be if you paid cash right now?
His original asking price has no effect on this situation at all.
You have done a good job by keeping an eye open and finding a motivated seller, this guy has all the signs of a great deal waiting to happen as he is out of state an so forth,so you are in a good position. Obviously the options that he has tried have not worked out so far for him and he’s gotta be getting tired of paying space rent. Ask him the question and then see what happens.
On another note, I had almost the exact same situation happen to me with almost the exact same numbers, original price was 18k and ended up at $5500.00 so it does happen.
Best Regards,
Sean (WA)
Re: possible deal advice - Posted by Emre (ID)
Posted by Emre (ID) on March 06, 2002 at 23:32:54:
NADA prices are Wholesale prices? Or are they Retail prices?