Posted by Marty (MO) on June 03, 2007 at 09:25:21:
carrying a large enough second to get the buyers in is a great strategy to get out of this deal.
Tony’s post should be mandatory for all noobs to help avoid some big headaches…
Suggestions or an opportunity for someone? - Posted by Linwood (MD)
Posted by Linwood (MD) on June 03, 2007 at 06:00:38:
Long time lurker first time poster. I purchased an Oakwood double wide with land in Farnham, VA. in Jan. 2006. This project I had hoped to flip after rehabbing it. Two of the biggest mistakes was not knowing the market in the area and not realizing the difficulty a buyer would have obtaining financing due to tougher regulations. This home would have sold in 30 days in my market, even though it is not on a solid foundation.(yes i have contacted Foundationworks. It is elevated to high on one end). No I don’t want to rent, land/bank,owner finance. Distance is the major factor, over 200 miles. If this was in my area where I could oversee, any of the options on this board would have been entertained by now. I am not a novice at this, having flipped numerous stick built homes and now own numerous rentals. At this point I just want out, get my investment back and move on. Any suggestions: perhaps change Realtors, offer a selling agent incentive, etc. What has worked for you to help move a property. Or is this an opportunity to sell to someone on this board. Mr.Investor could walk away from settlement with more than $20,000 in equity. Please let me hear your suggestions and thoughts.
Re: Suggestions or an opportunity for someone? - Posted by Phil-TX
Posted by Phil-TX on June 03, 2007 at 21:31:57:
I can identify with your situation. Have been going through one similar to yours. Is this home in its original location? If it has not been moved from where it was originally set up when it was purchased new, then you can retrofit with a foundation that meets FHA standards. Around here it is about $2500. Doing this will open up your pool of buyers as far as financing is concerned. We are closing on one this week on a zero down for the buyer using FHA financing with gift funds from one of the down payment assistance programs and the seller contributing 6% of buyers closing costs.
If your home has been moved, the solutions already offered such as seller financing and then discounting your note is a good way to go.
If there is truly $20k in equity in this deal, then Anne’s advice is right on…cut the price and move on!
I have found here that realtors don’t move that many mobiles for various reasons. You may want to find an aggressive MH dealer or a good MH salesman or MH broker that knows that market. Make it worth his time to get you a buyer and get it closed. Or sell it to one of them with the $20k equity.
I wish you well. Its not fun having an empty home especially when its that far away.
Phil
the answer is pretty straightforward - Posted by Anne_ND
Posted by Anne_ND on June 03, 2007 at 13:23:08:
You have this priced too high for the market if you haven’t gotten any offers at it’s current asking price. It’s tempting to blame the agent, or a bunch of other things, but the market has spoken.
Drop your price.
Anne
Re: Suggestions or an opportunity for someone? - Posted by Sailor
Posted by Sailor on June 03, 2007 at 10:02:46:
It isn’t just tougher regulations; it’s that there are few lenders for even well-qualified folks who buy used mobile homes. Yes, there are once-in-a-while ca$h buyers for MHs, but folks who have $$$ generally want stick-built.
If I understand your post you want someone else to market your property & find a buyer w/full pockets for a property that has a significant flaw. Hmmmm. . . .
There are fixes & an eventual happy resolution, but I think you need to re-think your strategy. My suggestions: (1) find a lender for your buyer. It may require you re-configuring your own finances so that you become, @ least temporarily, the lender. Make the financing so easy for the buyer that all it requires is a signature. Don’t even think about having the buyer search for his/her own financing. Your buyer is probably so used to rejection that one “no” is going to turn into “no sale.” (2) Fix the problems w/your MH. It won’t sell until you do that. (3) Stage the home just as you would a stick-built. MH buyers watch HGTV, too, & they want it nice. (4) Give the property curb appeal. Stain the deck & put out some planters. Make sure the lawn is maintained weekly. (5) Devise a marketing plan. No RE agent is going to market your property (especially a low commission MH) like you can market it. It’s hard to get an agent to even show a MH. The usual practice is to throw it up on the MLS & then tell callers to drive by & call back later if they are still interested. You need signs leading to the property, weekly ads, & picture flyers posted at gas stations & laundromats. You need to contact the neighbors & offer a finder’s fee. If you are offering such a good deal w/instant equity, local investors need to know about it. (6) If you really want to flip this deal, it has to be your #1 J-O-B until it is sold. If it was mine, I’d be making some visits, & holding full-blown weekend Open Houses, complete w/balloons & pennants. (7) Re-read DOW & keep it on your nightstand until you’ve worn it out. This isn’t stick-built & it doesn’t work that way. Lonnie tells you exactly how it does work. (8) Book your seat @ the August Boot Camp while you still can. At this point you can’t afford to NOT attend. Between the academics, the field trip & the networking you’ll achieve, you’ll figure out what you need to do to exit your property & how to make $$$ in this biz. You’ll also meet some amazing folks (including Lonnie, Scott & Tony) & gain life-long friends. (In the meantime, join us on the Wed night Chats.
Linwood, your problem isn’t that this property is 200 miles away. Lots of us do long-distance deals. I own notes on MHs thousands of miles away that I’ve never seen. I’ve also bought & sold property from great distances, on occasion when I haven’t even been in the same country. Right now, I see your problem primarily as a disconnect from this market segment. If you want to play, you have to climb in the sandbox.
My best wishes to you, & I hope to meet you in Asheville. Do keep us posted–
Tye
Re: Suggestions or an opportunity for someone? - Posted by Ruben (KCKS)
Posted by Ruben (KCKS) on June 03, 2007 at 08:04:27:
Off the top of my head sell for full value and create a note (maybe a 80% first and 20% second). Then sell the notes and hope that after you discount the notes you will have all your money back. If you bought right you may be able to do this but I do not know your numbers.
Tony makes very good points and if you do not want to lose money on this deal you may have to rethink your exit strategy since flipping mobile homes really does not work. If it did we would have a bunch of stick built people doing it and we would not see the profits that we do for selling on a note.
Good luck
Ruben
Re: Suggestions or an opportunity for someone? - Posted by Tony Colella
Posted by Tony Colella on June 03, 2007 at 07:39:48:
You say you have lurked here for a long time yet you violated every post here about land/home deals and you refuse to use any remedy we could offer. A seasoned investor such as yourself should not expect us to offer some magic bullet to get you out, nor is it reasonable to violate the non-advertisement policy here on a deal you cannot get rid of.
Linwood, much of your pitfalls in this deal would easily have been avoided by knowledge first, action second. The reality is that at some point the damage is done and losses are likely the only exit you have left if you cannot or will not use others.
If you don’t believe me, run some archive searches on things like flipping land/home deals, long distance deals, owner finance etc.
You went into a deal that had only one exit and you ignored the advice here that these type of properties are difficult to use that exit on. Unfortunately you had to learn for yourself the hard way that indeed the posts were correct and buyers of mobile homes with land who intend to live there often have credit and other financial issues that prohibit them from obtaining 3rd party financing to cash you out.
This is the same reasoning that Lonnie deals works so well on mobiles in parks.
Sorry you had to learn it this way, but it could have been avoided here.
Tony