All Forum Posts by: John Williams

So I called on several mobile homes for sale and I've visited about 25-30 parks here in Utah and there is hardly anything for sale (0-4 homes per park)!

But I talked to a lady a few days ago about her 1975 single wide she had for sale. She was asking $7800, I stopped her right there and explained that I buy and sell homes and that I could make an all cash offer but it would be low. She sounded kind of put off when she hung up but thats how its gotta be.

Her fiance called me tonight and said he would take $4K cash... still too high. Here in Utah I need to pick it up for around $2500 after which it should go very fast listed with pmts around $350-$400 with a purchase price around $9K + interest.

Now a couple Q's,

Should I have told him I cant pay $4K and told him my offer of $2500 over the phone?

Will it be better to show up with $2500 cash in hand and do an inspection then make my offer (what I plan on)?

I know $2500 seems like alot but I'm telling you there is very very little inventory out there and I am very confident in my exit strategy/price.
What do you think?

Any tips for my first deal and negotiation?

Thank in advance for your help,

John

I can help you with the pool question. I recently put together an LLC and have been working on pools commercial and residential for six years.

If the pool equipment (pumps, filters, chlorinators etc etc) is old it can turn into a huge money pit. I charge a reasonable service rate of $70hr and like all other outfits mark up parts 50%-100%.

In Utah you have to have a CPO cert employee test the water four times daily.
The company I work for hired an outside contractor once to do daily maintenance on a pool and jaccuzi and it cost $4k a month.

If there is old leaky equipment have new stuff installed right off the bat. It will save you tons of money in the future. Also make sure the pool is up to code, they are always changing. I just got done with a drain modification required by the state on an existing pool this week. About $2k bill.

Congrats on the new venture keep us posted!

So i've spent the last two hours trying to find out if I need to be licensed and bonded to do lonnie deals in UT.

No luck, which I guess is good because it doesnt look like any such license exists here.

However there are alot of other states out there who do, so make sure you guys check it out. I think the bonds are 25k!

If anyone knows if I need a license here in Utah let me know.

thanks

What agency did you contact in your state to become a "dealer" are there alot of requirements? If I do lonnie deals am I a dealer?

Thanks Jim,

I'm also starting to think I need to work on my negotiating skills as I dont have much experience.

Can I claim I am a Broker/lender if I dont have any such liscences?

It's kind of a stretch but not really a lie.

I have a couple Q's on park rules and mngrs and how to deal with them.

Most of the parks around here are owner occ. I asked one MH owner if I could rent out the trailer in this park and he was told it was against the law! I called the park mngr and he said it was a park rule. Of course I then asked if I could seller finance it and he said that was leasing and it isn't allowed.

Technically its not leasing right? They purchased the home and I'm just financing it!

If I qualify through the park and buy a trailer, pay lot rent, and follow all other rules then immediately put it back up for sale and find new buyer who also qualifies can they legally stop me?

Some of these park mngrs act like snooty rich people and can be pretty arrogant. What's the best way to deal with them? How can I explain myself so they understand I'm not breaking any rules or laws?

Should I just pretend to be a real applicant who wants to move in permanently?

I also have thought about telling them I'm an investor with a finance company or something but I don't like lying.

Thanks in advance for your thoughts,

John Williams

One thing I have realized is that most people looking to buy a cheap mobile home probably dont spend much time on the internet/computer. Here in Utah only a tenth of what I see for sale is on the internet. Not to mention there are only 1-2 homes for sale in most of the parks I've drove through. I'm gonna try flyers and bandit signs to find my sellers and buyers but I will use the internet too.

Also, if you seller finance make sure you still charge the accrued interest if they pay off early. Plus add a $15 monthly service charge. All advice found on BP.

I would be very excited if I were you, I have yet to find a deal and its killing me. If I were to buy a single family rental home out here in Utah it wouldnt cash flow as good as your two deals.

You rock Jim J.!

I have really been struggling to find all the documents needed to put together a solid deal. I have already been to the link on this site and it is lacking. Those of you that have been doing these lonnie deals probably have specialized contracts I cant find on the internet. Your help will be greatly appreciated!

I need:

Purchase offer contract

note

purchase contract

and any other contract you might have, I would like to see them all!

Look forward to your posts

Thanks,

John