Posted by Finance Guy on June 05, 2007 at 19:18:05:
None…there is no contract with zero down buyers. Hence the zero down = not a real buyer.
Don Wilson (OK)
zero down buyers - Posted by John T (WI)
Posted by John T (WI) on June 05, 2007 at 19:08:58:
Those of you who accept zero down buyers, what changes, if any, do you make in the contract?
John
My boss says nothin’ to lose = No deal - Posted by John Merchant
Posted by John Merchant on June 29, 2007 at 09:02:57:
If they want my MH I’ve got to see a commitment of something, either cash or something they own like a car, truck, RV, boat.
That’s simply “my employer’s” rule and since I’m just a simple employee of the “company”, like Mr. Landlord, Jeffrey Taylor, not my decision.
Re: zero down buyers - Posted by Karl (Oh)
Posted by Karl (Oh) on June 06, 2007 at 20:36:01:
Just a comment on zero down buyers.
The minimum downpayment that I’ll accept on any home is mostly based on the condition of that home. If I’m accepting a zero down buyer, its because the condition of the home is poor. I don’t ever sell a nicer home to a zero down buyer. The buyer will have to do a lot of work on the home (or not do it, if they choose) to make the home livable.
I usually write in the purchase agreement “This home is considered a handyman special, and requires considerable rehab to make it habitable. The buyer is agreeing to accept the home AS-IS, and will perform all required work on the home before moving in”, or something to that effect. I don’t make any changes to the note and security agreement.
I sold four zero down homes in May. All four were dogs that I wished weren’t in my inventory. They were all between free and a couple thousand to me, and I sold them all for $5k-$7k on notes. I’ll probably have them all back in a year or two, and sell them again. My choice was to either rehab the homes to attract better buyers, or spend very little time and money and take a chance on some down and out buyers and write some risky paper, and concentrate on doing other more profitable deals.
Karl
Re: zero down buyers - Posted by Anne_ND
Posted by Anne_ND on June 06, 2007 at 15:56:44:
I tell them to borrow money from family/friends. If they say they can’t I say “well, if your family and friends won’t lend you money, then I certainly won’t”. Sometimes they come back with some, usually not.
Anne
Re: zero down buyers - Posted by osupsycho (OK)
Posted by osupsycho (OK) on June 06, 2007 at 14:54:07:
John,
While I don’t take anyone with zero down I have taken a lower down in lieu of other things. Usually it is labor on either the home they are getting or another home. For this I just right it on the standard lonnie contract under the down payment as:
$XXX cash and $XXX amount of labor at $X per hour for X hours.
The key here (and why you have been getting the responses you have), is that you don’t want to ever do a true zero down. They must have something in the deal or they will never work out.
Jad
Re: zero down buyers - Posted by Sailor
Posted by Sailor on June 06, 2007 at 12:43:06:
Zero down buyers are called tenants, & I have them sign a Rental
Agreement.
Tye