Hi everyone!
I’m looking for some opinions here on this deal. I’m looking at this trailer Sunday morning. Its a 1982 Ritz Craft. Note held by Greentree. Balance owed is $8850. Payment not including insurance is $163. Lot rent is $305.00. All appliances included. Assuming this is in good enough shape, do you think this is a do-able deal? Anyone have experience assuming loans from Greentree?
There does not seem to be enough room for me to make some money on the spread unless someone has a good downpayment, or am I looking at it wrong?
Please give me some input.
Thanks!
Amy
You need to know your market - what kind of a sales price would the neighbers not tell your buyer that they got screwed? What does a comparable apartment rent for? I’m betting 500 or more. 163 + 305 = 468, so charge 250 or more for a note payment - you get the spread, and the downpayment. Or, apply the dp to the loan - or, try a short sale - perhaps GT would take less as a payoff.
Be careful if the loan is not assumable - then you’re talking sub2, and there is no title security.
You just bought your first, grooter - don’t get too excited. But this could work - I’m just not sure that I woudl pay 8K for a SW, but then again, you can build a spread into it . . . hmmm
Steve,
Thanks for the quick response. I’m hesitant on this one and I was thinking because at this time the price is out of my comfort zone. (We have rental units already- why am I scared of this?) I was unsure if mobiles could be done sub 2- and you answered that one without me asking ;). Some 80’s single wides here are still selling for in the 8k- 10k range. So if I can make at least 2k off this I figured this early in my game I’d do it. Well, I’m off to go see it.
Thanks for the info! I’ll post my findings.
Amy
WELL…
The dw was in very good shape. Very do-able. I called greentree and found it was acutally a 1984 model. They no longer have any programs to assume their loans. They do have financing available for homes aged 10 years or less.
$8880 is what is owed on this unit. Does anyone have any creative ideas??
Thanks,
Amy
Do you have the credit to take a personal line of credit for the $8.8K? It’ll run you about 12% (my credit union ia 11.9%)…
If you think it is do-able, borrow against your credit or a HLOC, turn around and finance it back out to the new owners for a higher price and a higher interest rate.
Perhaps this is for a buy and hold…payment on $8800 for 5 years at 12% is $195…with lot rent that’s about $500 plus taxes and insurance…
Keith
take some pictures of the bad stuff
offer less than ask, and explain cost of repairs
ensure that you are clear on who owes back rent/taxes
why do you have to pay what their asking? offer less, and negotiate - I’m talking 2/3/4K