2nd Sale Creative Financing


#1

Hey yall, I need your appraisal of an offer to see if I should go thru with it with this valuable franchise I have in my little mobilehome park in Hartford, Alabama.

I bought an 18 lot, 2 acres park, with city services, in 2004, March of that year for 60,000. I paid down 700 per month and got a deed, note and mortgage for 120 months. The lot rent was 50 dollars per month when I got it. I went to 75 due May 1st, 2004 six weeks later, and in the middle of March after getting control, I sent out letters of increase, and instructed them how to send the money orders to my post office box.

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After one year of messing with the park, I named it Dundee Village, and had plans to convert it to a plus 55 park because of their income and Alabama has become a retirment market for years now. And set the goals at a 100 per month sell out to tenants on 15 year terms. I was set to get a twenty thousand dollar loan guarantee from the USDA community rehab loans to make the conversion. They don’t want me to condo it, but that seems always an option even if it’s a promise of a 99 year lease. I don’t really care anything about owning it or live’n there, or operating it as is and evidenced my my first creative financing sale two years and a month ago.

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The first month of collections gave me my down payment and closing costs share and license fees and insurance cost and I had money extra, but not much. After the increase it cash flowed at 1125. I had a landlord with five units and was now paying over half of the debt service on the purchase money mortgage. I offered the park to her for $925 per month for 180 months, on a contract for the sale of real estate. Her pay the closing. To freshen the deal for her, I gave her a unit I had $1500 plus cleaning costs in. $60 dollars. I gave it to her at no money down, just the promise to pay all payments according to contract. She operated the park for 24 months, and was only behind once, and never got a $25.00 late fee notice. As of May 1st, 2007 she went into default and next Wednesday the park is mine again.

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Today, a man, a mobile home operator north of here, Agreed to pay me $5,000 dollars and $1400.00 per month for 161 months, plus put two mobilehomes in the park by June 1, 2007, and give me a first lien on both of them. He will insure the units and the park, and pay the closing cost. I am getting for my present buyer in default a year’s lot rent at her unit locked in $75.00 per month for one year with an option on a month to month for $90.00 for a year. All present tenants will be locked in for $75.00 per month and buyer must increase to $90.00 per month to gain share market price by June 1, 2008. All money’s paid from present tentants shall be paid to escrow officer at bank until the $1400 payment per month to seller is satisfied. They will pay me $700 on the First and $700 on the 15th. Demand letter for default goes out on 16th, and there is ten days to redeem. Late fee is 5 percent per day for ten days. Retake on next first in case of default, no exception, or pay the amortization schedule figure in full. Standard contract for sale of real estate bla bla blas. He wants to crank the deal off first as only month to month, and I agreed.

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I never got it listed on the internet today, but that price is $105,000.00

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I was just wondering if I can get input on this from some of those that share in that three thousand dollar boot camp charge for common knowledge if you think about it. Should I wait and survey the world net first?

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Thanks for your input. I guess with him just come’n in with a month to month he’s going to be looking at this as a lease with an option to buy, as well it already is under a master lease from my company. He is come’n to Lakeview Village in Opp, Alabama, where my office is and where I live right now on Monday afternoon to try and cut a deal and put down a binder.

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I bet Earnest Tew could help me, so glad is still around now to try if he reads it. Hope you are doing well dear Earnest.

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I learned about a Master Lease from Earnest Tew, and when selling the first sale to that buyer, I sold her on doing Lonnie deals thru out the park, and now that I"m take’n it back over, there are land leases for 15 spots.

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I’m current with my purchase money mortgage now and always, and will not even try to discount my note to them even though they are old. I mean why should I pay him off anyway, I got this deal at a great percentage rate. I always knew this park was good for 700 dollars per month for ten years because I was selling out in Samson, and move’n a unit in there on lot 17 and retire there. But I came to know within a month, I would never live in a park I operated as a consultant or owned. That is a NO NO.

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Live at the one that has made you the most money without much hassle, that’s where I am now. We have eighty spaces around a lake to put units on. I got my place for 7600 dollars, a six teen by seventy four Fleetwood, 2000 model, furnished, with a freezer, washer dryer, central air, carpeted, 2700 dollar wooden porce and ramp and back ramp. Last August I cashed out on it, sold it to my company for an office, moved into it a year after I got it in the company’s name. The debt on it now is $14,000. I pay rent rate for lot and insurance and payment on ten years, about 360 total per month for the office. I live in the back of the office, private entrance. Don’t you ever think there’s not good ROI figures on dealing with mobileparks and rto’s of trailers. Creating and maintaining some spots that create affordable housing for the market, even the HUD market, of mobilehomes is a good business. What is the return on my investment?

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What was my investment? lmao

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You think mobilehomes are lucrative with financing you should consider the business of RTo CONTRACTS, on portable buildings. grin.

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#2

What kind of input would you like? It sounds like you have done a good job creating cashflow from the sale of the park.

It just goes to show to those who visit the forum that this business can be lucrative for those with creative minds.

Last I hear, Lakeview Village was for sale. Did you buy that park?

Steve


#3

Steve, thanks, NO, but the note is on the market for a half a million, and me and group are bidding on the balloon note of June 1, 2008. We hope we get it, she’ll discount the note the guy that failing at this park now isn’t on top of his game. We’ll see. Thankyall Steve, for soliciting my partisipacion when yall broke off of CRE. Doc is proud of yall I know. Steve yall are great.