Possible deal....moral support needed! :) (long) - Posted by michelle

Real Estate Investing Mobile Homes & Mobile Home Parks
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Posted by John Lowry on May 11, 2000 at 23:37:54:

Michelle,

Stick with it, you won’t be sorry. I have some resistance too. However, I can tell you from experience your first deal will tell the tale. This is your life and decision too. You need to do this for your future. Hubby will come along after you have done the work. Hey, lets look at it down the road, shall we…

Six months from now…are you still with me? OK, Michele now has 10 income producing MH. She is now averaging 200 per deal for a total of 2000 a month. Now you are a morally correct stay at home Mom with an income of 24000 a year and a possible net worth of 60 to 90 thousand… Whoa, now please tell me that this would not get your hubbys attention. You benefit because now you are helping out the family your child benefits because they get to know their Mom and not some strange babysitter or relative. Your husband is now thinking that 10 more of these things and he might not have to work as hard. This is a win win situation, do you agree?

Well, this might be a little far fetched, but at least its a start and even possibly a goal for you. Anyway, good luck and be patient with hubby, he will come around.

John Lowry
Muskogee, OK

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Possible deal…moral support needed! :slight_smile: (long) - Posted by michelle

Posted by michelle on May 11, 2000 at 22:24:24:

Hey all! I might have a first Lonnie deal brewing. Ad in the paper says must sell, $4,000 obo. Went to look at it, it’s 14 x 70, early 70’s, 2 br/1ba, with stove, fridge, and dishwasher(don’t know if it works, has never been hooked up since she bought the place). Has all new carpet and linoleum, ceilings look fine but are in need of paint (looks like old nicotine stains), kitchen cupboards are okay, not great, but the countertops are pretty icky. The bathroom is not great, but usable. I think it needs a shower kit put in, new faucet, and new toilet seat for sure. All the windows on the east side need new screens and two windows are broken. The “yard” is mostly weeds. The park is not the best in town but there are new owners who seem to be committed to cleaning it up and evicting troublemakers, though only time will tell on that. I asked what her best cash price would be and she said she really didn’t want to go below $3,000. She bought the place for $2,500 a year ago and still has a loan of $2,000. She said repeatedly that she is just sick of it and will take the best offer.

My problem is that I don’t really know what homes actually sell for here. I’ve studied the few ads, but don’t know if people are actually getting the $5-7,000 they are asking for. I do know that 2 br. apartments are demanding $275-400 with utilities extra and that the low end rents are real dumps. Houses are renting for $325-500 for two bedrooms. Lot rent would be $140 with water and garbage included. With these numbers I think I could sell it for less that they would pay for rent for a not-so-nice apartment.

I know you guys out there don’t know my market—but what do you all think?

The second part of this is that my husband thinks I am totally nuts to want to try this. He says if I want to make some money to get a job. After paying daycare, I can pull down a whopping $5-6 per hour (before taxes). Get this argument he tried on me…“Everybody that wants a mobile home already has one…who are you going to sell it to?” Pardon me…so, like, everybody who wants a home already has one, everybody who wants a car, or a coat for that matter already has one?..what’s up with that? Sorry, just have to vent a little. He also says that the people who would want to buy from me would just be scum bags and more trouble that I want to deal with. Anybody that can provide some moral support or suggestions can consider themselves my buddy!

Well, thanks for letting me “air out”!

Michelle

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Re: Possible deal…moral support needed! :slight_smile: (long) - Posted by Laure

Posted by Laure on May 12, 2000 at 21:57:26:

Funny thing about spouses. My first husband never wanted to do real estate. He said it’s too much work, and no money. We divorced after 5 years of RE investing (married 17 years). And guess what ??? He didn’t want ANY OF THE HOUSES !! What a DOPE ! I am tickled he hated real estate ! hehehe Our divorce had nothing to do with investing. More to do with his secretary.

No, we still don’t talk ! LOL Think he figured out what a dope he is?? Doubt it !

Laure :slight_smile:

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Re: Possible deal…moral support needed! :slight_smile: (long) - Posted by Wayne R Miller

Posted by Wayne R Miller on May 12, 2000 at 21:49:18:

Does hubby want you bare foot and pregnant as well? Sorry…I’m sure he’s a nice man and you love him…be he really needs to start thinking beyond a W-2 and to some real $$$.

This deal sounds sweet. You are getting some good advice from others on fix up…

It will work and hubby will love those checks that start coming in every month. My advice…you keep them!

GO GET 'EM!

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Re: Possible deal…moral support needed! :slight_smile: (long) - Posted by d.henderson

Posted by d.henderson on May 12, 2000 at 07:11:02:

Moral support!!! We all will give that here just keeping coming back for more.
I can’t add much more, your getting answers from the REAL PROS and they are always willing to help. Wonderful right?
I would figure in 3 months holding, if it doesn’t take it fine, gravy, but if it does just tell hubby that it’s covered and not to worry.
The first one, you want to fix it up nice but DON’T!!! Clean it and do a *little cosmetic work. I always tell them they can buy as is or if they want it redone then I will have to have double the down. Usually they want as it, remember these people usually don’t have a lot of down money. Screen, Screen, Screen, that’s why I say 3 months lot rent, because you will be tempted to sell to first one with money if you don’t have a cushion to work with.
If the PM is trying to clean up the park, take them to lunch and offer to help that is buying the mobiles and getting nice people in them, try to work a deal on reduced or no lot rent for x number of months. Just remind them that it’s win-win for both of you, if he has people in the park that attact more good paying people.
You CAN do it!!! Remember Winners Do…Whiners DON’T!!!
always learning,
Dee-Texas

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Re: Possible deal…moral support needed! :slight_smile: (long) - Posted by lib cassin

Posted by lib cassin on May 12, 2000 at 07:10:42:

Michelle:
2 things
On the MH - way to go, you can do it and I bet you can buy it for below market and sell above.

I used to have a husband like yours, found a way to put me down, belittle everything I tried, negated my dreams, controlled my time, efforts, energy etc. Sound familiar? Guys like that have a great need for control, and they do not gain it by expanding their own comfort zone or capacities but rather on the principal of constrict, control! So, know that in choosing to be with him you will be forever doing battle for your own potential, and the more you soar, the louder the deminishment!

I dumped the jerk and it was the smartest thing I ever did. I now have a wonderful husband of ten years, supportive, caring, encouraging (great*****) a dream, and frankly, I would urge you to value yourself very, very highly and DO NOT accept that bs from anyone.

Email me if you need to chat, and remember, only you can decide what is right for you, including your mistakes, they are yours to make ad learn from

Go, Girl, you can do whatever you make up your mind to do

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Re: Possible deal…moral support needed! :slight_smile: (long) - Posted by Lonnie

Posted by Lonnie on May 12, 2000 at 06:42:39:

The others have given you good advice. As you’re already finding out, you have to expect, and over-look all the “advice” and criticism from friends and family members. Just consider that one of the road-blocks and obstacles to success. As you go through life, I think you will find the most advice comes from the people least qualified to give advice.

I assume you’ve talked to the PM and the home can stay on the lot. If so, why not see if you can give the seller a few bucks for a 30 day option, then run some ads and see if you can locate a buyer. Or, get a contract with a 30 day settlement, so you can find a buyer before you have to pay for the home. Check with all the park residents to see if they have a friend or family mender that would like this home.

Don’t know your market, but I feel sure if the home is in livable condition, you should be able to sell for at least $3,500-$4,000 with financing. If you can buy for $2,000-$2,500, you should be O.K. And I wouldn’t spend too much on improvements. You’re not the one who will live there, so don’t go over-board. Financing and affordable terms is what you’re really selling in this case.

The first deal is always the hardest, but it’s so important that you do that first deal. Good luck and keep us posted.

Lonnie

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Hang In There - Posted by Tony-VA

Posted by Tony-VA on May 12, 2000 at 06:18:36:

Start with the new park owners/management. Be certain that the home can remain in the park if you buy it, sell it and finance it. Find out if the current owner owes any lot rent and if so how much. Find out if there are renters in the park now and what they might be paying for the homes.

Work with the seller. Let the know in nice terms that mobile homes are like cars, they depreciate. They may counter that they have put extra’s into the home. Ask them if they intend to do the repairs you have mentioned. If not, let them know that you will have to do these repairs thus there is no way you can pay $2500. (By the way, I personally prefer the sell "As is " approach but always negotiate for the buy price with the intent to fix up)

From what you have written, with lot rents of $140, I would say that you should easily be able to get payments of $250 or so. During the negotiation process with the buyer, you can flex the payment amount a bit depending upon the down payment and number of payments.

I highly encourage you to stick closely to Lonnie’s plan as outlined in “Deals On Wheels”. This book will keep you in the driver’s seat and keep you from making many, many mistakes.

Your deeds will speak for themselves. I am willing to bet that your husband will remain skeptical until you prove it through action. Words will not suffice.

Prepare yourself now because you cannot panick when the holding costs begin. If the home does not sell immediately, you are going to have some lot rent to pay. This is when your husband’s negative opinions will weigh heavy. Keep your confidence up and keep posting here and sites like this. You can feed off the other investors. Their motivation and encouragement will get you through. Once you close the first deal, I feel very confident that motivation will not be hard to find. Slowly your husband’s opinion will change.

You are not the first investor to have a less than supportive or excited spouse. I was forunate. Although my wife was not excited about the idea of investing in mobile homes, she was always supportive. She eventually came on board with the idea and even went out and did a few Lonnie deals of her own.

Hang in there, it is going to be a great ride.

Tony-VA

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Re: Possible deal…moral support needed! :slight_smile: (long) - Posted by Buck (AZ)

Posted by Buck (AZ) on May 11, 2000 at 23:05:14:

Hello,

I’m not a MH pro (I’ve never done a MH deal, just lending support), but I will do my best to try to help where I can.

First of all, to get your husband off of your back you NEED to do your first deal. Once he sees a positive cash flow and all you’re doing is walking to your mailbox to get the money, he’ll probably want to join you!

Second, you need to get the best deal you can out of the purhase. If the owner has told you that they’d take the best offer AND you know they only owe $2,000, that’s where I’d begin. It doesn’t sound as if they have buyers knocking down their door putting offers on the table. If they counter work from there. You can get a good deal out of this.

Third, cleaning the property probably won’t be that bad. A lawn boy for about $20-30 (depending on the size of the yard) will get it clean. Of course you know spending a few bucks on paint (for the ceiling), maybe some shelf paper for the cabinets, etc, and you should have a marketable MH. Sell the home for what you can get in your market (preferably in the $9-11 g range) at the obvious 12.75% interest.

If you do this your husband will be happy, you will be happy, and you will have some great first hand experience for your NEXT deal (not to mention, a cash flow you can hold on to or sell at a discount).

Let me know how it goes and good luck!!

Orlando