MH Buying Oppt.,Need Help!
Hi Everyone, I live in a MH Park, where several homes are being taken back by the park owner, for past due rent not paid, these homes are available to purchase from the park owner at very low prices ($1,000 to $2,000), the park rent is $375 per mo., including water,sewer & garbage, this park is within blocks of the ocean and this situation holds some great opportunities in my opinion, but I dont have the CASH needed to buy these homes ALL CASH, which the park owner requires and the park does not allow renters, so I was wondering, how can I buy these homes and turn around and finance them back to buyers?, ANY HELP??
Option!
Talk to the PO - tell them that you will market and sell the homes, financing them for the new owners, but you cannot see the advantage of taking on the responsibility of an owner (paying lot rent . . . times *how many*??? Yikes.)
Agree on a purchase price, establish a $10 option to buy at that price, upon sale. If you do it right, the downpayments will pay the park for the MHs, and you will get the note income - free money!
You can possibly also work it so that if you get 1000 down for a MH that you optioned for 2000, turn over enough of the first note payments to pay it off.
If I were a Park Owner, I would welcome somebody's offer to do this - a PO is WAY too busy to hassle with this - and agree to just about any reasonable terms jsut to get lot rent flowing.
Go get 'em BRI!
Thanks for the feedback, but not clear on the $10 option point or paying back the $2000 option from note income, also I feel that I SHOULD be responsible for paying the lot rent out of my note income, because if my new owners do not pay the rent, I would be come the owner of the MH thru their default of rent requirements to the park??? Looking for further understanding!!!
BRI
coupla ways to approach the lot rent:
collect it all from your buyer, and distribute to the park, or
the buyer is on a separate lease, and it's their own responsibility to make sure the lot rent is paid.
To explain the Option:
BRI: Hi! I'll pay you $10 for the option to buy this MH for 2000 on or before May 15th. You can sell it yourself, and there will be nothing owed to me. But i will market the heck out of this thing for you to get you a paying tenant. I'd also like the option of paying the $2000 by giving you part of it upon the sale (give them your downpayment) and then payments for the remainder out of my buyer's payments.
PM: Great! How can I lose? You're great BRI! How did I get along without you for so long? You *really* offer a great service!
:-D
Thanks Steve, now I understand your points, great info!!!! Wish me LUCK!!!!! BRI