What a fantastic day!!
Just wrapped up a slam dunk deal!… I love waking up not knowing what the day will bring. Not to mention the thrill of NOT having to call people and ask to buy their homes. We (in the MH business) really do deal in a business with almost zero competition!!
While most other investors are climbing over each other or cutting each other’s throats to score a deal; we in the mobile home business have very little resistance and seem to cruise along undetected.
This morning I received a call today from a new post I have been running in the “mobile home” section of my local penny saver.
The call came in early this morning; I quickly got up and drove to take a look at the 2/2 1978 singlewide mobile home in a family park. The distressed seller hasn’t lived in the home for 4 months, is tired of paying lot rent and ready to sell.
Over the phone she told me the asking price was $4,500 for the MH. The home needs almost nothing; no cleaning, no handyman work, no appliances needed… It’s almost perfect! The reason I say “almost nothing” is because 1 window is broken and has a board over it! (Big whoop) I may not even fix this before I sell it!
Appliances are included, central heat and air conditioner, tiled floors, fresh painted walls and it even comes with a 27 inch color television (oh-la-la)
The park charges $315 a month for lot/pad rent (average in my area) and she is current on all payments.
After talking with the seller for a couple minutes about life, her family and finally about the sale of her mobile home, I got her down to $1,700 cash! The only real negotiation technique I needed to negotiate her down to this price was to keep pulling away. She kept chasing me for the sale! Plus, next month’s lot rent is coming due and I we both knew it. (Just 1 more bill she didn’t want to pay!)
I got a nice, clean 2/2 1978 mobile home, made a friend who will keep her eyes out for more deals (and I told her Ill pay her handsomely for the tip), and was finished signing papers by noon.
For the rest of the day I went over a buddies, went to see a movie (paranormal – boo!) and played rock band… what a great life!
Happy investing
-John
John:
My husband and I are really enjoying your blog, which we found thru Bigger Pockets. Can you elaborate on “finished signing papers by noon?” Do you use a bill of sale? How do you transfer the title? Do you both have to go to the DMV to get the title in your name? Another item I have not found in Lonnie’s books or anywhere else yet: how do you deal with the park in this case? Do you show up at the office, say you bought the MH, and sign a lot rental agreement? I have read of some lonnie dealers who pay the lot rent directly to the park, and others who just let their buyer pay the lot rent on their own.
Becky