I just put one on contract, because I did not have the money to buy it. I’m either looking for money partners or a flip deal. I made the agreement subject to cleaning up and finding a buyer (30 days to close on 5/?/99). I did not put down any money to the seller, however, I put in liquidated damages of 140.00 if we don’t close the deal due to not finding a buyer for the home. I have in the sales agreement that I can assign the contract to whomever. If I don’t close I’m out $140.00 a months lot rent. The park was happy because they know the lady will have next month lot rent.
Using Purchase Options with Mobile Homes - Posted by Robert(AL)
Posted by Robert(AL) on April 28, 1999 at 19:34:14:
Is anyone successfully using 30-60-etc. day purchase options to buy and flip mobile homes via a “Lonnie Deal”. If so, could you please let me know how you have found is the best way to do these deals. I want to give this a try, but I’m not sure how best to approach the seller with this concept and then bring in my buyer to view the home.
You can do this without muddying the waters - Posted by Dirk Roach
Posted by Dirk Roach on April 29, 1999 at 24:30:02:
Hi Robert,
You can do what you’re talking about with a standard option contract. However A standard Lonnie “To Purchase” contract found in the back of his books, with an added subject to partners approval or some other “weasel clause” will work exactly the same way and you don’t come across looking like you have no money to close the deal with. The thing which I personally don’t like about option (contracts) is that if there is a seller who is selling a MH and you come in and try to sell this guy with an option and I come in at the same time with cash, he’s going to with me.
However when I say that I have cash, maybe I really don’t. What I do though is sign up this guy on a standard “to Buy” Lonnie contract (slightly modified). Now this guy has not moved yet, and I ask him how long he’s going need to move and such. He says three weeks (or whatever) and I say fine.
I explain that by him signing the contract he has sold the home to me, providing everything is met in the contract. Then I throw him 20 bucks (to make it legal) as a deposit. Now I have three weeks to get out there and find the money to close this deal. Preferably a buyer with the amount I need as a downpayment. However if I can’t do that then I may need to look into getting an investor or whatever.
Now say that something happens and I can’t come up with the money. Well then I have my weasel clauses to get me off the hook.
So I have tied up the home by using this contract. The seller cannot sell to anyone else because we have a contract. In fact I always explain that to them, and tell them that they don’t have to worry about selling the home, that they no longer have that problem.
So you can see the power of the standard to buy contract which can be found in Lonnies books.
Good Luck,
Dirk
I have done two “Lonnie” deals so far and they were both done with an option. I had no $ to offer so had no choice. It works. Even though I had no money, I still bought for wholesale and then sold for 2X what I paid. E-mail me if you need some help on the logistics.