Update - Handling the Closing - Posted by rachel

Posted by Karl (Oh)q on May 23, 2007 at 22:30:27:

I can’t help it. I just love people.

Well, there is one exception.

Karl

Update - Handling the Closing - Posted by rachel

Posted by rachel on May 23, 2007 at 11:02:41:

Hi Everyone,

Well, I wanted to give you all an update on my prior post “Handling the
Closing.”

I got a message from the sellers today. They are wanting to see if we can
close on Friday b/c they need the $ from the sale of the home for their
deposits on the new apartment.

So, now this is putting me in a bind. They said they are planning to move out
Saturday. If we close on Friday, they said they do not mind the 1 day liability
issue for insurance purposes. They seem like they are trying to work
something out with me.

I put in a call to my insurance agent to see what his thoughts are on this
issue.

I’m thinking of making the sellers sign a statement saying they will be out by
Saturday (possession date) and every day after will be a $100 per day penalty
for any violation. Also, I was thinking of putting in a clause where they will
assume the risk for their contents and any liability issues from Friday to
Saturday.

What do you all think?

Thanks for your help!

-Rachel

please understand - Posted by Steve-WA

Posted by Steve-WA on May 24, 2007 at 10:59:04:

My comments are meant with the best intentions; don’t think me callous or mean . . . well, I dont really care what anyone thinks, but I just re-read what i posted last night, and it comes across a little tougher than I intended.

The meaning is still there, just not as mean!?

You are getting really good advice from all respondents - please consider thoughtfully.

Use Higher Authority - Posted by Tony Colella

Posted by Tony Colella on May 24, 2007 at 06:48:45:

Rachel, in the desire to complete our first deal we often get caught up in doing whatever it takes. The problem is we give away too much control and can easily lose our money. That’s why it is so important to stick with Lonnie’s plan to the letter.

One technique which may help you to regain control of the deal is to use the higher authority method of negotiating.

For mobile homes it is quite simple, true and effectivce. In your example, “Sorry Mr. Seller but the investors we work with to purchase these mobile homes will not allow us to pay for them until the seller has moved out, left the home in broom swept condition and given us the title and keys.”

We are the investors you work with to figure out how to invest in these deals. We are the ones giving this advice. We all must humble ourselves as the investor on the spot and simply play the roll of employee when dealing with park managers and buyers and sellers. If the buck stops with you and you are new to the game you are going to make bad decisions, we all do.

By using higher authority it always gets the seller back on track without getting them upset with you (they don’t try and kill the messenger). The want your money and if the investors won’t allow the seller’s to trick them out of it, well then the sellers must play by the rules to get the money. Darn those investors!

Tony

boy did you screw up! - Posted by Steve-WA

Posted by Steve-WA on May 23, 2007 at 22:17:48:

You asked me what i think!

did you miss that whole thing about no payment until you get the keys??? This is THEIR problem, not yours. You are cruisin’ for a bruisin’.

Insurance is no issue. I never insure a home while I hold it, and its never bitten me. Buyers get the insurance, not me. So dont lay it off as YOUR insurance problem. It’s not.

you’re too motivated. You say thanks for our help, but you ignore it.

that means that you’re going to do what you want anyway, so why ask?

good luck with that

Re: Update - Handling the Closing - Posted by Ellen Brenn

Posted by Ellen Brenn on May 23, 2007 at 13:21:10:

You should politely suggest they get a large rental truck to hold their belongings for a day and rent a motel room for Friday night if they need to close on Friday. That puts their problem squarely back where it belongs.

Re: Update - Handling the Closing - Posted by Karl (Oh)

Posted by Karl (Oh) on May 23, 2007 at 13:16:29:

Rachel,

Why don’t you put down a “deposit” on the home equal to what they need to get into the apartment? Go pay this directly to the apt manager so you know it got paid and there are no problems with them getting in.

Then when the people have moved out and they are ready to close and hand you the keys and the title, give them the rest of the money.

In this business we’re constantly being asked to twist and flex and contort ourselves to help buyers and sellers overcome their “problems”. Being good at solving problems is what helps us make money in this business. However, the more you do, the more they will ask, (and for some reason the less grateful they become). I flex when I can if its not too inconvenient, or I make more money, AND it doesn’t put my money or property at risk. Giving a seller all the money and hoping they move out when they say is putting both your money and property at risk. And it gets YOU nothing.

Karl

(You are Not) Handling the Closing - Posted by Tony Colella

Posted by Tony Colella on May 23, 2007 at 12:26:51:

Rachel, I don’t know how we can say it any more clear without offending but stop taking on other people’s problems, stick with Lonnie’s plan or otherwise just get ready to prove yourself the old adage that a fool and their money are soon parted.

Get mad at me but don’t let them stay one second in your home after you pay them. If they need the money that bad then they can pack up and have it broom swept and keys in hand for you. That’s the deal. They get paid when you get the home.

The only one putting you in the bind is you for not taking control of this deal. You have the money, you are in business, you are in control. Tape this to your pc if you have to.

Tony

Re: Update - Handling the Closing - Posted by Don-NY

Posted by Don-NY on May 23, 2007 at 11:31:13:

I kinda agree with everyone else. However you sometimes have to make educated judgements about peoples intentions. How about YOU write the checks to apartment complex for first months rent and deposit that way you know they have been accepted. And if all hell breaks loose over the long weekend you could stop payment. Hold back the rest with a day by day penalty agreement. Im not sure about the insurance but if I were you I would have it in force the day you close.
"Always trying to SOTC"
Don-NY

Re: please understand - Posted by Ruben (KCKS)

Posted by Ruben (KCKS) on May 25, 2007 at 24:24:13:

Steve,

You be to harsh…say it aint so. All kidding aside Steve has a wealth of knowledge in mobile home investing and his posts are always right on target. When I have a problem and need advice he is one of the first one’s I call and I can always count on him to shoot straight. Do not take his direct communication style incorrectly as some have in the past he really does have a heart of gold. Someone told me his site nickname is big old teddy bear. Now which event did I hear that at…hmmmm must be getting forgetful in my old age.

Ruben D. Flores

816 918-9041

you’re so nice - Posted by Steve-WA

Posted by Steve-WA on May 23, 2007 at 22:20:10:

thats why we all look up to you, well when we’re sitting down.