Advise needed from the Pros........

General Real Estate Investing
1

Hello, We are in the process of closing on a new home in San Antonio. We currently have a 1993 Palm Harbor 4/3 lots of room located in a park. We bought it for over $53,000 and only owe less than $20,000. We DO NOT have to sell the current home to close our new home…but don’t want double payments and lot rent.

I have a lady who states interest and wants to pay $10,000 down and “owner finance” with a payoff in 5 years for her daughter and grandchild. She wants to move it to her property in Poteet, which already has hook-ups, etc. How do I close this deal and what contracts need to be signed…

As a second option I have a couple here in the park who are currently renting a single-wide from the park that were promised the first double-wide, but management has changed and now the new management won’t transfer them. They want to do a lease, option but only have $1,500 down and another $1,500 in 8 weeks. I don’t even know if the park will allow them to move…My current payments on mortgage are 283.00 and lot rent is $270.00 per month, plus insurance and taxes…

Any advise on just how I need to pursue the lady with $10,000 down. What contracts to prepare, etc. We just want out of this house with a little equity.

How can I make option 2 work if Option 1 does not work out… Any suggestions would be appreciated.

Sincerely.

Val

2

Your question has a lot of parts to it.

I would do whatever it takes to get that 10k downpayment if I were you. The documents you need are a bill of sale and a promissory note. You can get those at Office Max or Office Depot.

You’re going to have to get out your financial calculator and figure out what her payments to you will be. If you don’t have a financial calculator you can go to http://www.mortgagecalc.com/

You’re going to have to play with the numbers to make sure her payment to you is more than your payment. Her 10k downpayment is going to lower her payments so you might have to raise the interest rate and or make the sales price higher or shorten the term of the loan. Any combination of those things will raise the payment. It’s not uncommon to get 11% or 12% when financing mobile homes.

You’ll have to check with the park manager about the other couple. He may not let them move and he may not allow you to owner finance your home in his park. He makes the rules.