I got a call on one of my post cards to absentee owners. A lady named Paulette explained she purchased this property 8 years ago for $80,000 She now owes $26,000 and just wants to get rid of it and will take $4,000 to walk, she tells me that she has rented it off and on for years and is tired of fixing and repairing and painting etc. She also tells me she purchased it for herself and her mother but then she got married and moved to a nearby town and Mom didn’t want to stay there alone.
I soon had it on contract and started marketing it on Craig’s List. The problem is, it’s 60 miles out of the city in a migrant farm town. I tried for weeks to get it sold, I received lots of calls and lookie lou’s, none of my cash investors wanted it.
The Mobile has a lot going for it, it’s a huge 1450 SF Double wide and sits on a full 1/4 acre on a city lot with huge shade trees, the interior need some repairs, probably under $5,000 to patch the kitchen floor and new lino and some painting and carpet.
Finally a lady named Christine calls and says she lives on the same street a few doors down and wants to buy it for her son.
She tells me he is coming into a big cash settlement. We started escrow yesterday. I was worried about the cash settlement never coming thru but Christine insisted it was almost ready to be released. She agreed to pay asking price of $48,000 I estimate the property has an ARV at the original selling price of $80,000
I wrote up the Assignment to include a $1,000 Non Refundable Deposit that will revert to me after 30 days if she cant perform.
So, I’m really excited, hoping for the best. Wouldn’t that be a kick in the butt to make 18 Grand on a fixer Mobile home 60 miles out in the country?
Let’s make some Money…
I love your detailed accounts of the work it takes to do these deals…
You’ve reminded me that often the first and best buyers are already looking in the area/street of the houses we want to sell, and it’s just a matter of time before they raise their hand and say, “I want it.”
You know what’s really interesting? Doing my post cards and yellow letters to absentee owners I run across a bunch of owners that live on the same street as their second home, sometimes even next door. makes perfect sense, Wud you want a close relative
living across town or 2 doors down? You grow up in a quiet nice neighborhood and that’s home.
It’s rare when these deals go smooth and this one is really bumpy.
It’s a bit complicated I’ll try to explain it.
Seller calls me this morning and says she has to negate the deal because she owes more than she thought and is just going to give it back to the lender. I tell her, but Paulette, we have a legal and binding contract. I had her give me the lenders daughters number. I called Elizabeth, the daughter and explained that I had a contract to buy this Mobile home. She tells me the seller had no right to sell it because it wasn’t hers. She also says the seller is a few payments behind and foreclosure has already started. I then tell her the seller is on title as the owner and she has every right to sell and your father is only a lender with a lien for the amount that’s owed and that’s how that works.
She tells me that her father has just returned from out of the country and she wud have him call me.
A short time later my favorite Title officer calls. She says, Randy, this is Sherane, I got a call from Elizabeth. Do you have a contract to purchase this Mobile. I said yes, I do, She says do you have a buyer, I says yes I do, She asks if it was ready to close and the name of the title company. Then she tells me the seller was scheduled to come in and sign a deed in leu.
We had a chit chat and talked about other things. Then she asks me if I wud like her to straighten this out. I tell her, Heck yea.
Well then I called back Paulette the seller and tell her that she has $3,500 coming to her. She was confused. She tells me the lender is saying I owe much more than I thought. I tell her, Oh no that’s not true, he cant inflate what’s owed and I’m getting this straightened out so you will get your money. She was so relieved and thankful.
Wow, wat a mess, were getting the paperwork and earnest deposit transferred over to Sherane’s title company and everybody is happy except, for the sleezy lender.
He thought he was going to get this mobile home and lot for the balance owed of $26,500
A few years ago when I had a lot less experience I might have let this go and it sure helps to have some knowledge and a friend at the title company.
Another day in the life, and the drama continues.
I’m coming out of my cave for this mobile home deal. Buyer says she’s scheduled to go in and sign the paperwork this Thursday. Which means it will close Friday and record Monday. My $18,000 Friking check will be available Monday or Tuesday latest.
This is my biggest check so far. I had a $16,000 check and a $12,000 check a few months ago.
My goal is the break the 20K on one deal. It’s going to happen.
What am I going to do with my profit? First, I’ll get a bucket of chicken, coleslaw mashed taters, gravy and biscuits.
Well, I got my eye on this 5 acres in the mountains, actually its just the foot hills, has a 3/1 home and a 2 car garage and a pond.
Place needs some fixen up, so it’s priced right.
Seller is an old guy, he wont carry the loan even with a big down. Might have to get some funding to complete the deal.
Let’s make some Money…
Nice!! Making chicken salad out of chicken $hit.
I signed up a house last week for $22K cash. Now I can’t get ahold of seller and have a bunch of people wanting to see the place. He was supposed to put a key under the mat but never did.
The place is hour and a half away. Not sure what to do, probably not much I can do. Going to send a letter including the signed contract.