I finally sold my first mobile home deal last week, and wanted to post a success story, but really this is a story about how important the park managers are to one’s success.
In late February, I bought a 1984, 3/2 mobile home in a local park. I paid $4,950 for it and put another $4,500 into it. I followed the park manager’s requirements for repairs to the letter and let her know that I would pay her $100 for a successful buyer referral and $100 for each mobile home seller she sent to me and I bought from.
She sent me a pre-approved buyer for that home, and I closed with those buyers last week. The sales price was $14,000, they put down $2,500, and I took back a note for $11,500 at 14% payable over 54 months.
The buyers have very good credit, so I’m not worried about the payments coming in. I sold part of the payments on the note for $7,000. I keep the down payment and a portion of the monthly payment each month.
We were going to close at the park managers office, so I went to Hallmark and bought a nice card, and then went to the bank and got a nice crisp $100 bill. I wrote her a thank-you note, put the bill in the card, and gave it to her before the buyers showed up at closing. She was really touched that I’d put it in a card. She has sent me four other sellers in the last two weeks, two of them I’ve signed contracts with.
One of them agreed to sell to me for $1,000. He paid off his lien with Conseco–about $3,000–and I went over there today to check it out. The place was spotless and will sell for about $7,000 with no work by me.
On the other one, they agreed to take $2,750. They have to send Conseco $8,000 to pay off the lien. They are thrilled to be out from under the home. I think I can sell it for $8,500. Again, no work needed by me.
A third seller sent by the park manager paid $7,500 for a nice 1973, 2 bedroom mobile home for her daughter TWO WEEKS AGO. The daughter decided she didn’t like it, so the mother called me, and I offered her $3,200 (which is really too high, but it comes with all new appliances), she’s seriously considering it.
Although I spent too much money on the first deal, these other two are going to fund quite a few deals in the future.
I stopped off to give the park manager another $100 today, and she told me that the first referral fee had really helped her last week as her husband had not been getting any overtime, and she used it to buy groceries for her family.
I am loving this business! Thanks for all the help from folks here, especially Karl (OH) and John Hyre. The archives are a great resource too.