Got a couple questions from a member.
Thought they warranted a post.
Q – I noticed you always offer financing to buyers. How does it work?
A – Great question! Sales is a lot of psychology and NLP. Watch the videos in the members area.
1 – Ask questions
2 – Find out what they want and
3 – Give it to them.
We offer financing because it will gather more potential buyers than a cash ad will gather.
We also have showings with several people/couples at the same time. We get a feeding frenzy of activity.
One couple thinks some other couple will get it so there is urgency and reluctance to ask for a discount.
If there is a lot of activity, the deals sell for more money. If nothing is happening, the price must go down in order to sell.
We offer ‘financing’ to get lots of people looking.
Q – What if they don’t have cash?
A – We can find out what they want and find another one for them.
Build your buyers list, like you build your sellers list.
Most of our deals sell for cash. We did 12 last year and financed only 2.
The other 10 were CASH.
We are seeing more people buying with cash.
The one we just closed in March was $89,900 cash.
If you finance, you take as much down payment as you can and then payments. There’s a video about that in the members area, too.
Q – Why do we take a big down?
A – The more “blood‘ (in the form of money) they put down, the more invested they usually are in making good on their agreement.
If we take 1 month’s payment and let them move in – can we assume they will care for the property? No! We just set it up like a rental.
Buyers ‘tend‘ to take better care of their purchase. Renters might let it ‘go’ as “not my problem“. Not that they will but it’s an easy tendency.
Now, to be fair, we’ve had buyers let a place go into disrepair.
I’m just talking about percentages and tendencies.
Somewhat related to above question.
Q – Isn’t it risky? What happens when a buyer is not paying
or late in paying his payments to me? What will be my options?
A – We ask the people to move out so we don’t have to evict them.
NOTE: If they get evicted, they are put into the Nationwide eviction database.
Yes – all over the US and can’t rent anywhere that uses a background check. Unless the place they want doesn’t check. And ALL parks where we work, check. If they don’t, you don’t want to work there.
Avoid 1 or 2 star parks. We work in 3, 4, 5.
One time, we had some potential buyers who went to the park office to qualify. Although, I mentioned to them that ….
The background check will check on Felonies, Credit and Evictions, they didn’t mention any eviction to me.
They called and said they talked to the park manager. She told them that even though they had an eviction over 10 years ago, she would not approve them to live there.
So most people will move. They don’t want to have an eviction on their record.
If they don’t pay, we usually don’t need to evict them. The will move or the park usually will. We have not had it happen with any of our mobile homes. I had a few situations like this, with regular houses but never have had to evict anyone. They have always moved to save their record.
We just ask them to pay or move and they do one or the other.
Q – If we buy and sell in a few days, using Craigslist, isn’t it weird if the buyer can see the old post with our buying price and the new one with the new selling price?
A – Never had it come up. People have short memories. Even if they see it, I doubt they will compare ads. They might but we’ve never had it come up.
Q – I noticed you price some houses for 99,000 and some for 9,000. How do you determine those prices.
A – Great question!
It’s market by market, age, condition, etc. Once you get to know your area, you’ll get a feel for it. I cover that in the videos. You have to get out, look at several, talk to park managers and owners, see what they are selling for and go from there. We are finishing one right now that I will list for $59k and see what happens. The manager told me I might get $30k.
The same manager told me to sell another one for $11k or $12k. That’s all we’d get. We thanked them and sold it the next week for $24,500.
You will be the expert, go-to guy/gal in your area.
To paraphrase my kids:
Park managers will help but they’re not the boss of me!