Posted by Austin-IN on March 02, 2004 at 19:57:53:
That was all great advice. I would buy the one for $1000 today (If lot rent was current and taxes were paid). I could find a buyer that would do any work themselves and sell it to them for $5000 carrying a note. Let them know that if you were to do the work it would cost a lot more. Or as Lonnie says, advertise it as a “handyman special”.
If you got $500 down and and maybe $150-$225 for first months payment and carries the note, then guess what…Your’re only in the deal for $200-$300. That means one more month and every payment after that is like free money to reinvest.
If you don’t know what the inside looks like, who knows, maybe it will be in great condition and you could even do better on the deal. Sounds like a deal to me.
Questions on potential deals - Posted by John (in IA)
Posted by John (in IA) on March 01, 2004 at 17:05:35:
Followed up with my PM today on two potential deals.
The first one had to move into assisted living several months ago. Her brother helped her move the things she needed but lives out of state and hasn’t been back to help with the rest. PM thinks she would take $1000 for the home (1982 14/70). Haven’t been inside but it’s very nice outside. I’m going to call her soon to set up a time to meet. I was debating offering to help her move if it would sweeten the deal. Is this a good idea, or potential trouble?
The second is a out of state father who’s daughter and husband up and left. The park requires vinyl siding which it dosent have (grandfathered up to this point). Should I even mess with this? I could do the work myself for maybe $900.
Number one: Gosh this sounds so familiar! Is any lot rent being paid? Remind her of that fact. Today is the first - lot rent is due. Call her RIGHT NOW. Let her know that you can stop the bleeding immediately. If the PM will allow you some free time, great. If not, then you have the lot rent expense to hedge against the purchase price. Don?t forget to check with the county and see if taxes are owed. Get her bottom price ? and if it fits, give it to her. Helping her move? Sure ? pay for a storage unit for a month, rent a U-haul, whatever.
Number two: Gosh this sounds so familiar! Is any lot rent being paid? Remind him of that fact. Today is the first - lot rent is due. Call him RIGHT NOW. Let him know that you can stop the bleeding immediately. If the PM will allow you some free time, great. If not, then you have the lot rent expense to hedge against the purchase price. Don?t forget to check with the county and see if taxes are owed. Get his bottom price ? and if it fits, give it to him. (Sensing a pattern here?) Siding? Check with the PM ? if it cannot continue to be grandfathered, then hedge that against the price you offer. In fact, by telling the owner about all of your expense, you may offer to just give him an out, and take over his troubles for a signed title.