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I spoke to a home owner that had a for rent sign up. I called and ask about his house for sale ( a trick I learned on a CFD call). He hesitated then asked me to call him back.
On our second pone conversation he was open to sell me his home considering it needs a little work. The man is 72 years old and loves to restore hot rods…so we spoke at length about that. He then tells me if I know his son (I didn’t). So on and on he talks about his life. He asked where I was from. I said Panama. Then he goes on talking about Panama and the his visit to Panama when he was in the Army. Then I asked if he by chance knew my late grandfather, he did. He spoke highly of him. So as you can see our relationship was turning out good and I was sure at this point that he would sell to me. At the end of the conversation when I set an appointment to meet him person to put his house under contract, he tells me…. he’s got 68 HOMES ALL PAID FOR!
I didn’t ask bout the other 67 because I didn’t want to seem ambitious. What would you think I should do? Buy the first one then come back and try to do second big package deal or ask him up front about all of his homes?.
Suggestion: refer back to Jackie’s email of March 22, 2013 about her first package deal on mobile homes, which she also stumbled into by accident. Here’s the relevant excerpt:==============================
” It was totally by accident! But boy and I glad it happened. It changed the course of my real estate investing business.
I had a few Lonnie Deals in a mobile home park in Plano Texas. The buyers paid on time but one day I thought I’d drive through the park to check on the homes and see if there were any other opportunities.
What I found was shocking!
Half of the mobile homes in the park were empty. So I went to the park manager to ask what was going on. The park had been sold to a big company in Colorado and they wanted all mobile homes moved out of the park, including the vacant 64 rentals, so they could expand the park in to a double wide park.
Seemed like a stupid plan to me. Why would anyone give up rental income like that? But I saw it as an opportunity.
They were asking $2500 for each of the 64 mobile homes. Some were 2 bedroom 2 bath but most were large 3 bedroom 2 bath homes. Some of the homes were only 10 years old and in excellent condition.
But what in the world would I do with 64 mobile homes and how expensive would it be to get them moved. I had a lot to figure out and knew I needed to act fast before someone else got this deal.
I looked in to buying a mobile home park with 64 vacant spaces to move the homes to. But that would make the whole deal too expensive and WAY TOO RISKY.
The previous year I was a wholesale specialist. I’d find an old home, get an option on it, then sell the house to a rehabber. It seemed that plan could work with these homes too.
I did some additional negotiating and got the price down to $400 per home – but it was only to be paid when the home was actually moved out of the park. I paid $2200 for an option on all the homes. And I got permission to have an “auction” on-site at the park to sell the homes.
Instead of writing a check for $25,000+, I reduced my risk by getting an option for $2200. The worst that could happen was not selling any homes and losing $2200.
Then I ran an ad in the Dallas Morning News and posted information about my mobile homes for sale on all the REI forums. Buyers poured in from everywhere. Some were investors looking for “Lonnie Deals”, some were park owners looking for homes to fill vacant lots, and about 1/3 were home owners. I did have a few guys buying homes for a deer lease.
In two days, I sold all homes. Sales prices ranged from $1500 to $8500. And it was their responsibility to get the home moved out of the park.
With cash in hand, I went back to the new owner and negotiated a 10% discount if I paid for all homes now instead of waiting for them to be moved. So, instead of paying $400 per home, I paid $360 per home.
What an amazing ride! In less than a week, I got an option on 64 homes then sold them for a HUGE profit! This was my first package deal and my first six figure payday!
Instead of making $3,000 – $5000 on one wholesale deal, all the sudden I knew how to get a six figure payday for about the same amount of work.
I wasn’t looking for a package deal. I was scared to death to take on 64 homes all at once but I minimized my risk by using an OPTION.
From that day forward, I intentionally looked for package deal opportunities….”
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Arcinio
Perfect timing since you’re coming to the Stealth investing CashFlowDepot Convention and will learn how to handle a package deal.
Trust me, a LOT of the old timer landlords/investors have a LOT of properties they would like to sell.
For many cash is not what’s most important to them… you’ll learn what IS most important at the Stealth Investing seminar.
Good job Arcinio.
A good dialog about the person before you start talking about the property is the way to go!
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