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So I found an old, used, 2 bedroom 1 bath single wide online. He was asking $4500. I got there and looked around and asked him what he wanted out of it. He said $4500. I said, I don’t know I don’t think I can do that. I asked him if that was the best he could do if I had cash today. He said $3000. I asked again, “is that the best you can do?” He said yes, so I went ahead and took it. (I found out when I took title that he had paid $2200 for it, so there was more room, but this was my first one, so I’m pretty satisfied.)
So I bought this mobile home for $3000. It sits on a lot rented for $200 per month.
I’m now offering it as a “handyman special” $500 down, 2 free months (except for lot rent)while they’re fixing it up and a note for $250 per month after that for 3 years.
That’t $7500 financed at 12.75% for 3 years.
I put those terms on craigslist and my phone has rang 5 times today since I put up the ad this morning. I don’t think I’m going to have a problem selling it.
I don’t have to do any work on it, nor do I have to be a landlord.
I’m going to look around that same park for some more!
Anybody see anything I’m doing wrong? Any suggestions?
Great job getting your feet wet. Sounds like a good deal.
Since you are giving them the first 2 months without rent, I suggest you have them fix it up b4 they move in – otherwise the fix up probably won’t happen. And (since I’m being a bit of a pessimist at the moment) when you get it back, it will be in the same or worse shape. However (on the bright side) should that happen, you’ll get to sell it again.
Hank
Congratulations on your first deal!!!
I would not have done no payments for 2 months. That complicates things too much.
And i would not have advertised it as $500 down. Instead, I would ask how much they have to put towards their new home ( that’s what lonnie does)
And Hank is right, don’t let them move in until all is fixed up. What is all fixed up? You need to spell out what will be done and by what date. Don’t give them the title until it is fixed to your satisfaction.
Make sure to put in that the down payment is NON-REFUNDABLE.
You’re making a great profit on this deal.
There are a lot of different ways to do mobile home deals. There is no one right way. It’s what ever the buyer & seller will agree to.
Keep up the GREAT work!!!
Jackie
Well, I need some advice on this deal.
I bought it for $3000, which I know now was too much for the condition and size of the home. Plus a $400 deposit.
It needs work, such as roof, ceiling and maybe a shower and appliances.
I’m offering it now for $170/month for 3 years. The lot rent is $200/month. I’ve paid $400 in lot rent so far already.
So far I’ve got $3800 in the place and I can’t really find a buyer.
I’m not sure if I should put more money into it and sell it fixed up, or try to cut my losses and sell it for a quick cash price.
Obviously I’m in a negative cash flow situation right now. This “good deal” is embarassingly turning into a headache.
Any advice would be appreciated.
Instead of spelling out now much per month and how long, just advertise that it’s a fixer upper and you are willing to finance. Then let the buyer tell you how much they have to invest.
I’d run TWO ads on craigslist every day — one for owner occupants and one for investors.
Plus you need to have a sign in the window of the home.
offer the park manager $100 bonus if they find a buyer.
put fliers in the whole park to see if someone there wants to buy it & offer the $100 bonus
put signs up within a 1 mile radius of the parkit’s time for “give it all you’ve got” marketing to get this one moved.
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