Posted by David Alexander on November 02, 1998 at 22:54:30:
Mobile Home for Sale
Owner Will Finance with
reasonable down payment.
When they call:
They will ask: How much down?
YOU: Anything Reasonable, how much were you looking
to put down?
THEM: Would 500 be enough?
YOU: I think I can work with that.
THEM: How much are you asking?
YOU: The price is negotiable, what kind of payments
can you afford.
(You do have to have an idea of what your planned exit is, As in you in the home for 3000 and you think you
can sell it for 7500)
THEM: I can’t spend any more than 450\month.
(Do some fast math in your head, you know that,
lot rent is 150\month, taxes and insurance 50\month,
and that leaves 250\month or 3000\year.
YOU: I think I can work with that.(As you punch your calculator, Don’t let your mind go cha-ching yet, with
pictures of dead presidents dancing)
You enter 36N, 250 PMT, 13.3% I, compute PV.
PV = 7,388 + 500 = 7,888
YOU: If you could afford to pay me off in 3 years,
I could sell this home to you 7,888, does that sound fair? (Silence)
THEM: What would my payments be?
YOU: If you could put down the 500 today,
your payments would be 250\month for 3 years.
Of course you would have to handle the lot rent
and taxes and insurance yourself.
As you shake hands, and collect a check.
(wait till you get in your car, to scream)