Giving Sellers Multiple Real Estate Sales Options

Welcome back,

Every mobile home seller and/or traditional house seller you speak with will eventually sell their property to someone. If there is any chance of you helping the seller and creating cash-flow with this potential investment home then you have to throw your proverbial hat in the ring by making a seller “valid” purchase offers to the sellers to consider.

I use the word “valid” because some folks think making a flat $2,000 purchase offer to every mobile home is the right way to do business. A valid purchase offer means you have thoroughly listened and screened your seller. You have then personally crafted multiple purchase offers that will morally and financially solve the sellers problem.

Tip for reading below:

It will help if you have some basic real estate experiences already. If not read slowly and carefully and imagine yourself in each situation.

It is a fairly common practice for investors to make multiple purchase offers when attempting to invest in a seller’s property. The reason for this “multiple offer” strategy when concerning mobile home sellers is different from single family homes. The primary reason of making multiple offers is not to get one of your offers immediately accepted, in fact I every mobile home investor I help train that we always want to hear a seller say “No” to our first set of purchase offers.

You want to hear a No from the seller?

Yes. As a mobile home investor it is important to purchase homes for below $10,000 when inside parks. This can only be done with proper deal structure, predetermined paperwork, quick rapport building, knowing your resale market first, and a proper follow-up sequence.

So why do you teach to create and present multiple purchase offers?

We make multiple purchase offers to mobile home sellers for a handful of reasons. One reason is to force the sellers to think outside the traditional sales box with regards to selling their used mobile homes. Great deals are not found, they are created. In addition to simply creating multiple offers to help the sellers understand all their options we make multiple offers to impress upon the sellers just how many ways be can help them sell their property to us. Through these multiple offers we often end up seeing eye-to-eye with the sellers and truly understand what each seller needs and wants to make the deal happen.

There are many moving parts with regards to each mobile home deal. Sellers may desire:

1. Cash Now: Cash at closing
2. Monthly Payments: Payments given to the seller monthly. We can pay more via monthly payments.
3. Yearly Payments: Payments given yearly can often be attractive when presented properly. We can pay even more for the mobile home if we give annual payments to the sellers.
4. Buy seller a new car (at a discounted price): Some sellers will want physical goods that you can purchase or trade them for their properties.
5. Move seller into another one of your vacant homes: This can be a fun and win-win arrangement if you or any investors you know have a vacant mobile home that fits the seller’s needs.
6. Pay off sellers hospital bills (at steep 60%-90% discount): Many hospitals will discount their defaulted medical bills for a fat pay off.
7. Prepay rent at new home: Many sellers want piece of mind that they have a new home or apartment to move into.
8. College school tuition, books, and/or supplies for children: While tuition may be too expensive, I have paid for college books as part of the terms of the sale. What is most important to your seller is what should be most important to you.
9. Actual moving help: Outsource this or help the seller physically move. Muscles and truck needed.
10. And much more: You are only limited by your imagination and ability to listen to what a seller really needs.

The list is as vast as your imagination and the demands/needs of each seller.

In the recent past I purchased a mobile home attached to land in Tampa, Florida. I purchased the 2/2 mobile home and 1/8 acre land for a complete purchase price of $34,000. I gave the seller only $2,000 at closing and structured future payments to total $10,000 in easy monthly payments of $200. This already totals $12,000, plus $900 for closing. The remaining approximately $20,000 of equity I owe to the seller will be paid by discounting the sellers recent hospital bills (approximately $20,000) and paying them off completely.

Since I know hospital bills do not attach to real property most of the time and with my previous experience discounting these bills I was able to reduce the approximate $14,000 in hospital debt down to $2,100. This process took 3 weeks by phone. This cleared the sellers debt-obligation with the hospital and I just created an extra approximately $11,900 in the deal by making a few calls and being a little creative to solve the sellers real problem.

This is the essence of Win-Win-Win.  

The reason I bring this discounting hospital-debt story up now is because of the image below. More than ever folks are seeming to not have health insurance or be able to cover their health bills. These bills are accumulating for many reasons. Long-story short sellers are feeling the pain more than ever when it comes to hospital bills. If this is a seller’s reason, or partial reason for needing some cash to close this could very well be a strategy to help close with less money in the deal.

If you need help with this please feel free to always reach out to me for help.

How to start taking action right now?

Knowing the right questions to ask each seller can better help you detect subtle or obvious “hidden and unorthodox values” that you can work into your offers. Perhaps instead of 2 or 3 offer you have 3 or 4. The end result is you providing more options and more value to each seller. Making more than 4 offers to any seller at one time tends to start confusing a seller. Always make sure a seller writes down each offer if you are presenting the offers via phone.

Love what you do daily,
John Fedro
support@mobilehomeinvesting.net

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