Posted by Jerry Freeman on January 27, 2002 at 07:09:13:
I’m not as nervous about this buyer as I would be about most, but your reminder is very appropriate.
Best wishes,
Jerry
Repo experts, I have a deal pending, please advise - Posted by Jerry Freeman
Posted by Jerry Freeman on January 25, 2002 at 15:17:41:
I have a cash buyer for a repossessed MH. I got the lists from Conseco, Greenpoint, MHD, Chase and CIT. Chase and CIT were unreliable about returning calls and providing info, so I gave up on them.
Today I showed my customer three homes – one from Conseco, one MHD and one Greenpoint. He likes the one from MHD. It’s an '00 Fairmont Stratford, 14 X 70 3BR/1.5Bath in perfect, new condition, set up in a park. I don’t know how long they’ve been holding it. The bank rep told me they’d sell for $22K. I told him that he’s got lots of competition, since Greenpoint is selling cheap. He said make an offer.
There are two ways I can go. I can submit an offer for the customer and take a 10% commission or I can get a signed purchase contract from the customer (no seller filled in yet) and then make my own wholesale offer and see if I can get them to sell it to me at a low enough price for me to make a better profit by then selling it to the customer. When the customer asked how much he should offer, I showed him that 80% of the asking price is $17,600. He said, I’ll go for $17,000. I told him we couldn’t predict what the seller will do. They may accept, they may counter. I told him the MHD guy is talking tougher than Greenpoint’s rep, but it may be just talk.
What do you advise? How much should I offer wholesale? Has anyone had experience purchasing repos from MHD? Anything about the structure of the deal that I need to rework? Any suggestions and guidance you can offer is much appreciated.
Best wishes,
Jerry
I ain’t no repo expert… - Posted by Chuck (AZ)
Posted by Chuck (AZ) on January 25, 2002 at 17:10:34:
…but I wouldn’t be too anxious to get between a rock and a hard spot. If you get there, you may not be able to get out.
It’s like you said in your post, “everyone’s got 'em”… selling is the easy part… or is it?
Take your 10% and go to the next one.
Re: Maybe I didn’t make the deal clear enough … - Posted by Jerry Freeman
Posted by Jerry Freeman on January 25, 2002 at 17:45:11:
What I’m saying here is that I will get the buyer under contract, which he’s quite comfortable to do. He will buy this home if I can get it for him anywhere near his price. He understands that if he signs a purchase contract for $17K, he will be obligated to purchase if the seller (either the bank or me) agrees to the price and returns the contract executed by the seller. I’ve been working with this gentleman for awhile helping him find what he’s looking for, and I know him to be a man of integrity. I’m not worried that he might sign a purchase contract and then bail out. He’s not going to shop around if I can get him his price – we’re further along with the deal than that. Considering that some have been saying that repos are selling as low as $.20 on the dollar right now, I want to make sure I do this intelligently.
Re: Maybe I didn’t make the deal clear enough … - Posted by Chuck (AZ)
Posted by Chuck (AZ) on January 25, 2002 at 21:19:39:
I understand completely.
My fear (as expressed in my previous comment) was that you appeared to be headed toward biting off more than you could handle PERSONALLY… getting into a deal that you couldn’t get out of… which is the biggest mistake people make in this business.
I’m glad to see that you have the bases covered.
Good advice … - Posted by Jerry Freeman
Posted by Jerry Freeman on January 27, 2002 at 07:05:45:
Good advice.
I’m not as nervous about this buyer as I would be about most, but your reminder is very appropriate.
Best wishes,
Jerry
Re: Maybe I didn’t make the deal clear enough … - Posted by Pepper Rodgers
Posted by Pepper Rodgers on January 26, 2002 at 21:44:01:
Make sure if you buy it and get stuck with it— you can turn it or rent it for profit quickly! If they are buying-- they are lieing— never trust a buyer. Did you know his old girlfriend called him up and wants him to move to Fla? I have heard them all— Make that low csah offer with a few contingencys—! Let us know how it works out!