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Case Study: Mobile Home Investing

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Education & Training

 

Afternoon all,

I just got back from a great “surprise” meeting with the seller of a 1984 single-wide; 2 bedroom 2 bathroom mobile home in a family mobile home park.  The mobile home has been owned by the same owner for the last 20 of the homes 26 years in existence.  She is asking $9,500 but she says she is “Willing to negotiate.”

I found this property by driving inside of a park I had been meaning to check out since I got to Texas.  I had to get out of my car to double check if I saw a tiny “FSBO” (for sale by owner) sign in the living room window. As I was looking at the sign my eyes naturally wandered to view the inside of the home.  Once my eyes focused inside the dark home I was locked-eyes with Gladys (not her real name). 

After screaming from surprise I laughed and walked around to the front door where I was greeted by Gladys. Gladys is a heavy-set middle aged woman with a severe case of diabetes and must struggle to get around her home.  This is the main reason she is selling and moving to a more accessible apartment closer to her daughter in the city.  

Inside Condition: #2 On my scale (There are 3 types of mobile home property conditions: 1 = "Nice", some cosmetic repairs, painting, etc.   2. = "Fair", cosmetic and some minor floor or ceiling repairs needed, etc. 3 =  "Bad news", major damage!)  I should only need to get a few cosmetic items fixed, clean and de-funkify (febreeze) the inside of the mobile before it would be ready for sale.   

Outside Condition: #2 Same scale as above.  No work needed to sell.  

Park: Decent condition. Pool and activities house. No gang signs.  Kids and pets allowed. Lot rent $410. 

Resell potential:   $30,000 @ 10%+ interest.  $1,500-$4,000 down and $800 month (including lot rent) 

My Ideal Purchase Plans:  $3,500 (cash) upto $6,000 (payments)  

Negations:  Gladys and I spoke for almost 2 hours.  We talked about her problems, her life, my weekend plans, her future plans, etc.  The point I am making is that we spoke at length and established a relationship; this will hopefully help in later negotiations.  Without too much pressure I asked her how close she could come to $2,500 ‘All Cash’. She looked at me with surprise, thought for a moment and said, “You are not going to get my house for $1,500!  I won’t sell it for anything less than $7,000.”  

Are you kidding me, in 10 seconds I was able to knock off $2,500 dollars.  Imagine what would be done with a few more times asking.  I asked Gladys why she looked surprise when I asked her how low she could go in price was; she told me she was surprised that someone was making an offer, a low one, but an offer.

I did not want to press too hard today on price so I told her I would show the pictures I took to my partner and get back to her with an answer within 24 hours.

I will let you know what I say in my next post.

Until then, John   


 

Posted by

- John Fedro

www.MobileHomeMadness.com

Ellen Dittman
Watson Realty Corp. - Middleburg, FL
#1 Stop for NE FLA-JAX/OP 904.535.1199 (TEXT OK) r

Interesting story. Good luck and thanks for posting.

Jul 21, 2010 12:00 PM
Sonya Nevins
Sonya R. Nevins, STAR REALTY, LLC (Waterbury, CT) - Waterbury, CT

The suspense is killing me...  Good story!

Sonya R Nevins (Star Realty, LLC) Waterbury, CT

Jul 28, 2010 03:41 PM