Re: Should I buy MH #2 before selling MH #1? - Posted by Karl (Ohio)
Posted by Karl (Ohio) on February 29, 2000 at 24:05:19:
When I woke up this morning, the first thing I did was jump out of bed and call in sick to work. (It’s called sick and tired leave). There was NO way I was going to go sit at a desk today after that incredible weekend in Atlanta.
Right after I coughed a few times for my boss on the phone and hung up, I got a call from one park manager (my newest best friend) who had a guy standing there in his office wanting a cheap used mobile home. By the time I drove out there, the guy’s park application had been approved. I own three homes there, an '86 that needs major rehab (I was started to regret buying that one), a '77 in really nice shape, and a smaller '71 in okay shape. After showing him all three, I asked “which one do you want?” He decided he wants the '86 because he thinks he’s a real handyman, and because its newer than the other two, it looked to him like the best deal out of the three. (I can’t believe what he agreed to pay for it!)
If I would have had just one home to show him, his choice would have been to either buy it or keep looking. By having several homes for him to look at, that changed his decision to “which one of these do I want to buy”, so he picked one. I decided I’m going to try to always have three or four or five homes for sale in that park, so my buyers have some choices.
When I started doing Lonnie deals last month, I never imagined I’d have as much “inventory” as I suddenly seem to have, but I just kept finding really great buys (or should I say they found me). If I would have bought that very first one last month and waited until it sold before buying the second one…huh, come to think of it, my first one hasn’t even sold yet! But I’m not too concerned, because a bunch of other ones have.
I don’t want to give risky advice to anyone, but buying two homes doesn’t sound like a big deal, especially if you say you want to get into high gear. $4500 for a '75 sounds kind of high, but I don’t know your market. Why don’t you call some folks off your buyer’s list, and see if you can’t have it sold before you buy it? Or go look at the five other parks until you find an absolute bargain that you’d be crazy to pass up. (Dirk, what was your yield on that one you bought for $50, about a gazillion percent?) Hope this helps.