Working On Possibly My First Deal
I just looked at a trailer home. The lady called me yesterday and said the house has been vacated since 3 years, she owns it free and clear. I checked it at the Court house. She told me the kitchen door is open and I could go inside to have a look. I will call back tomorrow.
This is what I saw:
a single wide with an add on big bedroom and bathroom, the trailer itself has one bedroom (one has been taken out to make a bigger living room) and one bathroom, a large open kitchen with a range and dishwasher. An add on 2-car port. An air and heat system, vents throughout the trailer. Window air in add on bedroom, this bedroom is about 22 x 22 ft. The roof needs replacing, it sits on a stemwall, the siding, where it meets the stem wall needs replacing, part of the floor in the living room and all the carpet needs replacing.
There is a nice deck in the back yard, back yard has good chain link fencing. It sits on approx 1 1/2 acre.
The trailer is from 1976. County assesor's value for all is $ 10872.00. The lady wants 18000.00.
All in all it needs about 5000 fixing up.
Any suggestions on what to offer and have the lady owner finance it at 5%?
Ladybug
Topic was moved to the mobile home forum.
Ladybug,
Do you know if the mobile is titled with the land (real property) or still has a DMV title (personal property like a car)? It probably shouldn't make a big difference in the offer, but I'd want to know if I were buying.
Where did she get the $18K asking price? Is it high, reasonable, cheap for the area?
Without the particulars on the deal, I'd offer $5K cash ($10 tax val - $5K repairs). Finding the cash shouldn't be a problem. Almost any storefront general finance company (like American General) would loan that amount to you if you were breathing and showed some method of paying.
What do you plan on selling it for? If $18K is already a good price, reduce it by the $5K for repairs (have a contractor bid to back up the figure) and have her finance the rest.
Roger
Thank, you, Roger, for the reply.
Sorry I posted on the wrong forum.
She has a Quit Claim Deed, it is filed at the Court House.
The price is very reasonable. I will increase the selling price with 10% on the front and 10% on the back end, and have a little on the monthly payments for 2 years. The buyer is a friend of ours, who is in need of a house (living with us for now) and he will do the repairs. I am selling it as a fixer-upper; he saw it already and wants it. He doesn't qualify for any loan (VietNam vet, divorce, awful credit history). He knows this is his best shot at building good credit, and owning a house, it will be the first one ever he will own, and knowing him like we do, we know he won't blow it, otherwise there are other buyers, so no worry there.
Ladybug[ Edited by Ladybug on Date 06/27/2003 ]
No problem, Ladybug. Just thought you'd get more responses here.
Sounds like you've got it covered. Let us know how it works out.
Roger
Thanks, Roger.
I talked with the lady tonight over the phone, we had a very nice conversation and since she wants to stick to the original asking price of 18000 and she wants cash, I suggested we substract the necessary repair costs and if she would be willing to take 13000. She said she will do some thinking on it and call me back before the weekend is over. If she accepts that I will take out a loan for that amount.
The buyer is willing to pay me 20000 for it or 25000 (his offer to me, he already saw it and is "dying" to buy it, with 1500 down in cash and I would have to take a 2nd note on 1500, to complete a down payment of 3000)BTW, I didn't mention any figures to him, he just volunteerd these figures. I told him to wait how it turns out, and then we would get down to the real numbers.
Do you have any other suggestions?
This would be my very first "real" deal.
This is exciting, even if I have to take out a loan to get it all started.
Ladybug
[ Edited by Ladybug on Date 06/27/2003 ]
[ Edited by Ladybug on Date 06/28/2003 ][ Edited by Ladybug on Date 06/28/2003 ]
I just wanted to wish you well on this deal.
James
Since it is a MH, check with your lender to make sure that they'll loan against it. If it is deeded as real property it shouldn't be that big a deal.
If not you'll probably have to go for a personal loan (maybe with MH as colateral). Higher interest rates.
Again, sounds like you've got it pretty well under control.
Good luck
Roger
Thank you, Roger and James.
The property seems to be deeded as real property, she has a Quit Claim Deed, I saw it at the Court House.
I really appreciate the support you have given me.
I will let y'all know what happens next.
How are you doing, James? Take care, we'll talk soon.
Ladybug
just wanted to wish you luck. sounds like things are going well
Derek
Thank you, Derek.
Ladybug
YOU GO GIRL!!!!!!
Hello, everyone!
I am a bit late tonight, but first I had to do my daughter's fleamarket payroll (I do her bookkeeping), so now that that is done, here is today's news:
The lady called me back and made me a counter offer: $ 15000.00! I told her I would think on it and call her back tomorrow evening.
Of course I am taking it!, but don't want to sound too eager!
I am getting a loan to be able to buy it, and since I sold it already, I feel good about it. I only have to do the paperwork for my buyer, he is "dying" to move in.
I am selling it for $ 24000.00. I'll be making 9000, less expenses, + the monthly payment surplus.
He will pay 3000 down payment. 1/2 of which will be cash, the other 1/2 a note.
Tomorrow morning I will have an appointment with a seller, where I hope to do a Subject to, John Locke's style. I know the seller, he is a police officer. I work free-lance as an interpreter for law enforcement and the Court, so a lot of people know me, makes it easier because they trust me. I will post the sequel on this one in the Subject to forum tomorrow.
Thanks to everybody for the encouragement, it feels great to have so many friends. John Locke has been great helping me along too.
Ladybug
When it rains, it pours. And it's pouring deals on Ladybug!
Congrats, and keep up the good work.
PS. Fleamarket Bookkeeping? Must make more money at it than I ever did.
Roger
Rajwarrior,
You probably don't have a daughter like mine! LOL
People adore her and she made that fleamarket great, and enjoys it! I make about 150-300 every two weeks, so do most of the booth keepers. I do the bookkeeping for free, she's family!
Thanks for the good wishes!
Ladybug[ Edited by Ladybug on Date 07/01/2003 ]
Well, it seems that there are multiple problems with the property:
there is a feud about the property line with the adjacent neighbors, it appears that the car port has been built on land owned by the neighbors, there is only one drive way to both houses, and it is on the neighbor's land, there is no easement. There is a whole lot more to repair in the trailer than was apparent.
The other neighbor, who has been trying to buy the property for ages, had offered the lady 18000 and she would not take it, she had been trying to sell it for 30000 to other potential buyers, nobody wanted it. Her last offer to me was for 15000, I haven't answered her yet, because I wanted to find out as much as I could before committing.
I think the wise thing would be to just walk away from it.
What do y'all think?
Ladybug
OK, the trailer home deal is off, way too many problems. I told the lady this tonight and she was very nice about it. She said that she would probably call me again to sell me her 1 1/2 year old new house, because she will probably be relocating, and she liked the way I handled the situation. That was nice of her.
Today I found another trailer for my buyer, a single wide with 3 bedrooms, 1 1/2 bath, new carpet, new a/c-heating unit, all appliances: fridge, range, washer/dryer, ceiling fans, blinds, one nice deck up front and one in the back.
Everything in excellent condition, and the seller wants 10000. I closed the deal. I sold it for 16000, 1500 down, refinancing in 2 years.
Ladybug
Everybody is happy now!
As you stated in your post the next door neighbor offered 18k and the owner offered it to you for 15k. Now the question is would the nex door neighbor still be willing to give 18k. If so Get a Purchase agreement with original owner for 15k sub2 finding a buyer or Tennent in certain amount of days. Then propose the offer to neighbor for 20k( only to see if they would take it, never know they may)if so get P/A and flip the property. If your 2nd buyer will only give 18k you still have potential for profit.
If this is a potentially no dice deal then I would have to agree that walking away may be a good choice unless you are in the practice of rehabing M/H. If I am wrong in my explanation I am sure someone will correct me as we are all learning here...
Great job!! Patience is a virtue. I am glad everything worked out for you and still made a Profit...
The last post went on before I actually saw the end result.. sorry
Thank you, Sassykid,
The best thing was to walk away from that first deal. Too many problems: a squabble about the exact survey of the lots, leaking septic, didn't have the 60' pipes or what they call it, more repairs than it's worth. The longer we looked the worse it got.
The new trailer home is in such excellent condition it is amazing!
Everybody is happy now. Even the lady that didn't sell to me! I had gotten the plat, she didn't know how to get it, and I am mailing it to her, so she can get her things straightened out. She will recommend me to anybody who needs help, and wants to sell Subject to. She thinks that is a great idea. We became "friends".
Ladybug