Losing Awesome Deal! NEED HELP QUICK????
HERE'S THE DEAL,The owner on title want,s out??? She owes the remainder of debt to private seller 57,000 and change... She the owner wants to clear her credit and sell me the house.She bought the Mobile and lot for 85,000so she is into it only 25,000. all i want to do is fix minor stuff there and resale but is there an investor that would loan me 15,000 on something like this??? Or does this sound like it could happen any advice would be greatly appreciated by the way the comps were done on this place and others aRE SELLING IN THE SAME NEIGHBORHOOD FOR 110,000.PLEASE E-MAIL ME WITH ANY INFO YOU HAVE KNOWLEDGE OF... THANKS SO MUCH... YOU ALL ARE OF GREAT ASSISTANTS TO US NEWBIES.... 
We are sorry, but we do not clearly understand the post.
$57K OLD balance
$85K OLD Purchase price
$25K Into it? (what does this represent?)
$115K ARV (average retail value)
$15K loan needed from the investor
$?? Repair costs
So help us understand how there is the deal here for the investor? We must be missing something in the translation. HELP!
Eric & Rosa
[addsig]
okay i will try to make this simple to understand ...a lady bought 1 acre with mobile home detached garage equipped with plumbing for #85000.this all took place 7 months ago she gave him the seller (private seller) no RE agent involved at all.She gave #20,000. down payment and has made paymants of 650.00 and now behind in two ****Must Reach Freshman Investor status before posting URL's***s. She wants to sell me the house now for #3000.00 and me take over the payments,,,, my husband does forclosure remodels everyday and he looked at this place and said with 5000.00 he could do the minimal repairs and we could resell and we know the payments will need to be brought to date.she is on title i checked that and comps in the hood are 110,000. so we need the cash to remodel and bring current and resell right away we do not want to keep it at all.
85k for a mobile home? Seems pretty steep to me. Make sure its worth it before you do anything.
Looking at the numbers, (Still can't beileve a mobile home worth 85k) you should see if the loan is assumable. If so, assume it, you immediatly have 25k equity, then sell it.
If it is not assumable do a subject to or flip, create a sales contract that allows you to assign the sale to a third party, give yourself an out, and try to quick sell it for 95k. You still make a bunch and it'll probably sell quickly if you are that much under market.
Agree with telemon.
Do a sub-to, don't assume, and see if you can produce a buyer before doing, paying, or agreeing to any commitment here.
Much easier to sleep if you have NOT over-committed yourself upfront.
e.g.: I just took a P&S contract, in lieu of a Deed, ( which she would have given me), on a very nice SFR in foreclosure...and I'm now working on short sale by lender.
If I'm successful, I'll assign my K to the existing tenant as the new buyer, helping him get new loan, keeping a few $$$ for partner and me....but if I'm not successful, I'll tear up the K & notify my seller that she's still in title, and I'll walk.
Most importantly, I'm not committed for any $$.
Cali....overinflated price, can we overcome this???
Yes, you can over come it. Try and research a little, what mobile homes of that stature are going for in the area. If you just offer less, they may be not understanding and call off the deal. If you can vaildate the cost, the seller is usually willing to take a low ball offer.
[addsig]
okay so i get this place and i automatically have 25k in equity?Correct? So where do i borrow 15000,00 to remodel and pay to date.. remember this place is not in foreclosure yet,she is only behind 2 payments. and i am not wealthy enough to provide the current past due also i needtitle search done and cannot afford this, how can i do this online???for free??? remember I am trying to do this quickly because i am under a 30 day contract. option to purchase pending further inspection so I must do this quickly... any suggestions appreciated>>>
You already have a contract? Is this contract assignable, if not go back and get an assignable contract. Then market the heck out of the property and sell it for less than appraised value. (check my post above for the scenario), You will have no money in, and are only risking your time and effort.
[okay so i get this place and i automatically have 25k in equity?Correct? So where do i borrow 15000,00 to remodel and pay to date.]
NO,NO,NO, .I'd say that's very INCORRECT, you won't have any real substantial "equity" in that MH, as they're buyable every day of week for pennies on their original price, in every part of the country. They depreciate the minute you drive them off the dealers' lots, just like cars.
The dealers try to have the gullible believe there's real equity in MHs, but the savvy just don't see it that way...and the poor gullible buyer ends up in a world of hurt whenever he needs to sell to recoup his "investment".
If you'll read Deals on Wheels you'll learn something about the biz of MH investing.
As far as borrowing that add'l $15,000, on a 2d on a piece of personal property, I'd say NO intelligent lender is going to want in that game.
Just think of gotting a 2d on your new car. Who in his right mind would make that loan?
Mobile homes are sold 2 ways in California - in a park where you rent a spot, or on a piece of land that goes with the home - the home being permantnely affixed to a foundation. Do I assume correctly that you are discussing the latter? (The first is personal property, the second is real property).
Regarding a title search, since you are inexperienced you might want to open an escrow and buy title insurance. Go to an escrow house and talk to them - talk is free. I believe you only pay for the insurance if the deal goes through.
Unfortunately prices are out of control out here in calif. A 1974 2 bed 1 bath in a park is listed now at $55,000. a mid 80's doublewide avg 110,000 to 160,000 plus IN A PARK. no property included. **sigh* Say who offers financing on 1974 mobile homes??
there is land in this deal... she bought the land with the mobile 1 acre... so does that change anything now??? she said the insurance company told her it was about 90000. value 4 months ago.
there is land in this deal... she bought the land with the mobile 1 acre... so does that change anything now??? she said the insurance company told her it was about 90000. value 4 months ago.
Of course it makes a huge difference.
Call and order a "listing package' from title company, and "comps" to see what other lots w good MHs are going for in that area. Then YOU go look at them and see if they're about the same as your deal here.
That will give you some idea what you should offer.
The MH alone hasn't any great value, but the land could make it a real deal for you...you've got to first learn what other lots w MHs in that area have been selling for.
Even then, do NOT cave in to the seller's figures too quickly, as they might take WAY less for a sale.
Not everybody wants a lot with MH, so you might get it a lot cheaper than their asking price.
As I said earlier, I can find DWMHs almot free if I"ll just go move them, and this situation exists all over USA...so don't let anybody tell you ANY DWMH is any terrific deal by itself. The land maybe, but not just a DWMH.
Even if they'd sell to you at a great price or terms, you'd want to condition your purchase on full inspection, including septic inspection...it could be a disaster, not "perking" etc., and that could cost you lots of money to remediate or fix.
Get some very knowledgeable REI or realtor to help you with your offer so you've got an out if needed, if the RE does not come up to what you need.
Good luck.
I agree that mobilehomes (even with land) are a good investment only if you are buying for pennies on the dollar. I've purchased a few for 40-50 cents on the dollar for rental purposes. Unless that acre overlooks the Big Blue, I'd say its north worth that amount of money at least not for an investor.
It's a little hard to decode what you are asking. All the caps and question marks and flashng figures get in the way. Also the ideas seem jumbled.
What you have is not a mobile home in the sense that most people here might understand (i.e. personal property on rented land)- you have real property - legally the same as a house - where the house was built in a factory. At least that's how it sounds.
I'm not sure I understand the question.
I think you are asking this. If I buy it by giving her 3000 for her equity, can I borrow against the property to pay for the repairs.
That depends on what value the appraiser for the lender gives to the property, and how much loan is against it.
It's not hard to borrow up to 70% loan to value.
Hope that helps.
Suggest you go talk to Washington Mutual for starts and get their opinion.
Quote:
On 2003-11-22 16:35, eyeballing wrote:
Unfortunately prices are out of control out here in calif. A 1974 2 bed 1 bath in a park is listed now at $55,000. a mid 80's doublewide avg 110,000 to 160,000 plus IN A PARK. no property included. **sigh* Say who offers financing on 1974 mobile homes?? <IMG SRC="images/forum/smilies/icon_confused.gif"> <IMG SRC="images/forum/smilies/icon_lol.gif">
15 years old is about the max. anything older than that as far as I know is out of the question for financing options. One of the reasons modern MHs are more expensive is that building standards (governed by H.U.D.) have improved dramatically. The older homes were built under different guidelines. For example some older models had aluminum wiring which is now illegal.
Another problem is it's Value. (If you're going to invest in MH you need to get yourself a N.A.D.A. book which will help you determine appraised value.) No matter what condition the home is in a 1974 model will not appraise for very much at wholesale which is what a lender will consider.
The land will carry your deal for you if you are combining land and home ( In other words a real estate transaction). In this case there are a TON of mortgage companies that will lend on any home any age.
Are you trying to finance chattel or land and home combination?
Hi Tammy,
You need to do your own due diligence on this one. One thing that might work is finding the buyers before you sell. Post an ad in the paper giving the approximate location of the mobile home, list for 10k more than what you can get it for, and see what happens.
If your phone rings off the hook, then you should tie it up and wholesale for quick money. If your phone doesn't ring, then it's probably not a deal.
Good luck,
John
He said, she said - this deal needs a WHOLE LOT of due diligence. Get an appraisal on the package first, don't guess value and don't assume the value will hold up for too long. Any way you look at it, the deal is kinda skinny for an investor. Add that into the risk inherent in MH deals and I'd say walk. There are beter deals out there. My opinion
C-
Quote:
On 2003-11-25 11:29, cpifer wrote:
He said, she said - this deal needs a WHOLE LOT of due diligence. Get an appraisal on the package first, don't guess value and don't assume the value will hold up for too long. Any way you look at it, the deal is kinda skinny for an investor. Add that into the risk inherent in MH deals and I'd say walk. There are beter deals out there. My opinion <IMG SRC="images/forum/smilies/icon_eek.gif">
C-
I'm with you, cpifer
I would look into the land value further. Unless there are 500 other mobile homes right near it then you may find that it is easier to determine potential value by starting with the land and then deciding if the mobile home is worth saving or not. If you can get 90K for the land and it cost 5-10K to remove it from the site then you may find this is the best approach, especially if land is in high demand. If at the same time you find that with 10K in work you can only sell it for at max 110K then you have to decide if that extra 15K in profit is worth it. I don't know your market but I would find it hard to believe mobile homes would sell quickly at 110K.
Also I would be careful when talking 25K equity right away. Equity, or paper money, is often the devil in disguise. Cash is the real stuff and until you are able to see your approach to fruition and have that cash then you can't rely on it. If there is a way to either assign it for 5-10K or close on it and sell it for land value or current condition then it is probably your best way to go. It sounds like you are not financially set enough to be tied into this property for the next six months whil trying to make 20-30K on it. Find a way to take the cash now, and move on to the next one. But thats just my two cents.
TBARBER
Tammy
If I found this opp up my way, I think I'd prefer to find an investor partner rather than a hard money loan.
You can do this too, and it will force you to do your homework and prepare an investor's busines package, showing the investor what's in it for him/her...and if you can't, then probably it's not that kind of high yielding deal a REI would want.
The place to advertise for the REI is your local REI group, or local free ad rag. These things get lots of lookers, are cheap to advertise in and will probably work for you too.