Posted by Chris on April 11, 2007 at 16:52:49:
I’m in the Augusta, GA/ Aiken, SC area. Yes, this is a GOOD deal and a rare find. I am just stuck in a poor cash situation at the time. I am looking to do this one 100% leveraged and hit a brick wall as to permenant financing.
Possible Land/Home deal to critique - Posted by Chris
Posted by Chris on April 11, 2007 at 15:31:51:
I was riding through a lower-middle class neighborhood in my city today and found a 3br 2ba doublewide on permanent foundation on an acre lot.
I was pleased to see that the listing agent is one I have done business with in the past. It turns out that the list price was $15,900 for some time, but lowered YESTERDAY for $9,900.
Acre lots in the neighborhood are worth approx. $6.5k- 8k and the realtor says that the owners are open to offers…
The downside is that I cannot refi a trailor it’s age ('77), and at the time I am very cash poor. I will more than likely be able to get a short-term high-interest loan for acquisition and repairs, but would ultimately like the exit strategy of refi- rent forever.
Here are the numbers:
Purchase price: $9,900
Repairs: $5,500 (carpet,paint,costmetics)
Rent: $600/ mo. or $7,200 annually
Possible financing option - Posted by ryan beckland
Posted by ryan beckland on May 03, 2007 at 14:06:28:
check out www.prosper.com. Its a person-to-person lending site. If you’ve got C grade credit or better, you should easily be able to get funded on this site. You might pay 20%, but considering that you’d still be making about $250 +CF before expenses, and you’d have no skin in the game, it’d still be a good deal.
Re: Possible Land/Home deal to critique - Posted by TeddyB_SC
Posted by TeddyB_SC on April 12, 2007 at 14:10:56:
Chris,
Why do you think you can’t finance a “77”. I have a “76” not on a permanent foundation financed for 15 years.
You may be surprised what a bank will do if you make a good presentation.
TeddyB_SC
Re: Possible Land/Home deal to critique - Posted by Michael(KCMO)
Posted by Michael(KCMO) on April 12, 2007 at 09:21:01:
Chris,
I agree w/ what everyone has said. My only other thought is that for $5,500 in rehab, could you spend a little more and put on a nicer, newer DW? I thought others from your area were buying newer DW’s for around $7,000?? What would it appraise for if you could do something like that?
If it’s truly a deal, cash should be the least of your worries. If it’s a deal you should be able a partner easily enough - but you’ll have to hit the phone.
My .02,
Michael(KCMO)
Re: Possible Land/Home deal to critique - Posted by JeffB (MI)
Posted by JeffB (MI) on April 11, 2007 at 22:35:18:
With a purchase price of less than $10k, it really might not make SENSE to try to refinance a property like this.
The numbers you’ve given for purchase and rent are terrific. Find a way to get this deal done. You’ll have all your money back in like TWO YEARS. That’s an insane return considering you will have the benefits of actually owning real estate.
I’d be offering maybe $7k with the explanation that such an old home has already exhausted its useful life and therefore is a liability, not an asset. So you’re really buying it for the land.
Heck, you could even sell the mobile home for $5k and charge lot rent in perpetuity and the numbers are still incredible. No matter how you slice it, this is a deal I would not pass up. As others suggested, credit cards, relatives, hard money loans, or even partners would be a viable way to get your deal funded.
Jeff
Re: Possible Land/Home deal to critique - Posted by John B
Posted by John B on April 11, 2007 at 21:53:23:
I like the idea Dr B presents, go in and offer them 2k cash now and $$$ per month for XXXX months, make it as sweet and irresitable to them as you can.
Good Luck
Re: Possible Land/Home deal to critique - Posted by Dr B (OH)
Posted by Dr B (OH) on April 11, 2007 at 17:26:00:
Chris,
They’re open to offers? Is the septic ok? How about $7500 cash? How about $9400 w/ $2k down (or less).
2)borrow against your house if there’s any equity in it. Set up an equity line of credit.
3)Call your credit card company and threaten to cancel it and transfer to a different bank. They hate this for fear of losing a (hopefully) good customer and usually lower your rate for a year.
Borrow the cash from your credit card, work your nuggets off and get that sucker rented ASAP.
Don’t forget about offering $2000 now and they hold a $5500 note. Payable at $200/mo starting 3 mos (6 mos if you can) after closing to allow for rehab time and getting a decent renter.
Happy Trail(er)s,
Steve
Re: Possible Land/Home deal to critique - Posted by Celeste
Posted by Celeste on April 11, 2007 at 16:16:17:
I would buy these all day long in my area if I could find them that cheap.I just bought a 1958 on a small lot for 33k and I think I got a deal and can rent it out for $900 a month.I say buy it.What area are you in that you can buy so cheap ? I’m in the tampa bay area of fl.
Re: Possible Land/Home deal to critique - Posted by Todd(AZ)
Posted by Todd(AZ) on April 11, 2007 at 18:56:11:
I hear ya Celeste. I’d buy those all day long too. In fact, I’d buy YOUR’S all day long if I could find them. For the same $900 a month, I’d have to pay $200,000 for a site built or about $120,000 for a mobile. A GREAT deal would be $80,000 for old singlewide, no permanent foundation, small lot, rents for about $650. Extremely frustrating!! Todd(AZ)