Flipping an option? Possible?

mobile home university
1

Ok, I have a few questions but first let me explain the

scenario. I have been reading a lot the past few weeks

and

have finally decided to take the plunge. I have taken

some

ads (free) and generated some leads, both buyers and

sellers. The one that interests me is a buyer who

wants a

place FAST for school. Problems…

  1. It is three friends, so can I sell to all three?

Would it be better to convince them to put ONE person on the

note and title? If they say no, is that a deal beaker?

  1. They want to move the MH. I am assuming they know

that is costly AND they have a place to put the thing.

Still investigating though.

  1. If they have to move it for 3k, how the heck are

they going to afford a down payment?

  1. Their price range is 4-14k, which is pretty high for my

first lonnie.

My idea is to do some sort of option, lease option,

something to tie up a property that meets their

criteria. For example, can I approach a seller of a 8k Mobile

home, offer 300 bucks to tie up the property for a month.

They get their pad rent paid, so I think a motivated seller

MIGHT go for it. I take the option at say 5k, but I could do

much higher IF my risk is only 300 bucks. The yield would

be tremendous if I can then sell for 8-9k on a note with

500-1k

down.

I am trying to be creative is the bottom line and NOT

plunk 8k into my first lonnie. That is not the “system” so I

will not buy any place over 3k or so. I WILL however, look

to exploit any opportunity I can to match up a buyer and

seller in a creative way.

Any ideas on how I can tie up very little money yet get

these 3 people into a property around 8-10k? If I put

an option out to purchase a property in the next months

time, it’s an option, so if it expires am I out the earnest

money? Would I have to lease option? I feel like that would

be unnecessary given this whole thing should only last 2

weeks. Also, I gotta be darn sure the property im looking at

works for those three, or I could be stuck leasing a 10k

mobile home? Ideas?

2

First off…Thanks for the GREAT advice. I really appreciate it.

So I talked to the three buyers today and here is their situation. Their family owns some land/pad near where they want to live and go to school. They won’t have to pay any pad rent obviously, so they figure why not find a home and move it. I know in Lonnie’s book DOW it mentions to run for the hills if you have to move a MH, and this is only my first deal so it worries me to take on something that isn’t beginner level stuff.

If I can get them to commit to putting all three on the note and title, should I go for it and just find a home listed as “must move” or something. I think those types of sellers probably have a very limited buyer pool since who wants to pay 2-5k to move it after buying it used? Is that logical? Or am I complicating things and I should just stick to a few basic lonnie’s first?

3

Should you have to reposses the home - it is now sitting on someone else’s land who might not want it there after evicting the 3 tenants. Now you are faced with additional costs of moving the home somewhere - if you can find a place to move it to. It just complicates things for you in the long run.

4

Ya I think I am going to pass. They not only want a good size home, but they also want to move it to private land, which I could see being difficult to get the MH from IF I had to. On to the next one (for my first one). :wink: