HBS on a single wide


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  • I am taking the plunge on doing a HBS this coming weekend in Jackie’s old stomping ground of Tyler Tx.

    My son in law purchased a single wide in a nice park. We are willing to sell it for cash or owner finance it so we will be doing the highest price and highest down payment simultaneously.

    I have re-listened to the conference calls and will update the board about our progress. I don’t think I have time to get signs printed so I am going to try and get the coroplast and make our own.

    Any thoughts and advice are appreciated.

    Paul
    Give me a call. I can send you a picture of the signs.
    Don Wede 815-252-3808

    The following is a description of how to do a highest bidder sale exactly wrong and still come out ok.

    My son-in-law and I went in together on a mobile home deal in Tyler Tx. The only real plan he had was to try and get a deal on a mobile home and make some money with it. I was funding the deal and providing encouragement and resources.

    We bought a 1998 singlewide in good condition that was in a nice park. First mistake was buying instead of optioning it. The people had put a contract on a stick built and had to close the mobile home to afford to close. We should have let time force the price lower. We paid 11,000.

    The park management seemed friendly enough about it and said basically pay the rent and don’t bother your neighbors and things would be fine. Once it was closed, we immediately put ads on craigslist and a sign in front of the home.

    He was taking the calls and I was posting the craigslist ads. Each of us still have real jobs to go to and we didn’t hussle enough at the start and it drug on with no clear plan on our end of what to do with this thing now that we had it. Sell it, rent it, move it. We were way too indecisive.

    More than 3 weeks in, I tell him that we are going to do a HBS. He had read a little bit about it and I had wanted to do one for a while, so this was a good opportunity. We put it on too quickly, didn’t have enough signs put out, not enough flyers. We did do several ads on craigslist which got a pretty good response.

    After the closing bell on Sunday afternoon, we had a grand total of 5 bidders including on gentleman who has a 40 space park in Tyler. He talked to us for quite a while and gave us a lot of good information and also will be a good buyer for certain price range homes.

    We came home and sat at our kitchen table Sunday evening and started making calls. The highest bid to start off was $700. After 5 rounds we got it up to $9500 from the gentleman with the park. Although that was below what we needed, it was great information on what the market was for that home and let us know how much we should have paid.

    We still had a home to sell and we started thinking about having it moved to a park closer to us, with cheaper lot rent and just renting it out, although we didn’t really want to pay to have it moved just to pay lot rent somewhere else. We also looked for small tracts of land that either had water and sewer already or where we could provide it reasonably so we could collect rent on the trailer and the land.

    We kept ads on craigslist for rent or for sale and just as were about to get it ready to move it out of the park, we got a call from a guy looking for a home to move onto his land for his son. That was a Tuesday and by Friday we had a check for enough to cover all of the expenses and put about $1500 in my son in laws (daughters) pocket.

    We made a lot of mistakes but we were excited and anxious at the same time even though it was a small deal. I asked my son in law if he ever learned this much in any of his classes while getting his degree in finance from UT Tyler. He said not even close. I think that makes it worth the most.

    Hi Paul

    GREAT STORY!

    You learned some important lessons on this one.

    Instead of making the seller’s problem ( getting cash) your problem, an option would have been the way to go. As time got closer to the seller’s needing cash they would have reduced the price.

    Plus, when doing the HBS, you discover what the REAL market value is. You can use that info to go back to the seller’s to renegotiate or to walk away from the deal without losing any money ( just losing some time).

    Next time, I’m sure you’ll be more cautious about plopping down $11,000.

    It is great that you made some profit, though I’m sure some of that was eaten up in trips from Athens to Tyler.

    Now… it’s time to go get another one.

    Keep it up!

    Jackie

    Paul,

    Glad that it worked out. Sounds like a great learning experience. Follow Jackie’s advice. Call again any time.

    Don Wede

    Thanks for the comments. Jackie, when you do a HBS where it doesn’t meet the strike price, have you ever had a seller try to go back to one of the potential buyers to strike a deal and leave you out of the mix? Just my scheming mind asking questions.

    No, I have never had the seller go back to try to strike a deal with a potential buyer. Most of the time, the seller is not at the property when I do a HBS so they have no way to meet them.

    I also include in the option agreement that I will be paid $ XX if one of my buyers later buys the property.

    Well done Paul! Glad it worked out for you. Hank

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