You may recall from yesterday that I was considering putting in an offer on a mobile home. It is located on a small lot and the retail value is about $45,000.
This is one of those times when I've had a BUNCH of potential properties to buy come along all at the same time. In addition to the mobile home, there is an auction Monday which will have a 4 bedroom, 2 bath house that I might get CHEAP (like $20,000). Today, I also located 4 properties that are going up for tax sale next week. Since the weather was nice today (about 50 degrees), I decided to ride my motorcycle to look at these properties. Yes, it is a tough job, but somebody's got to do it. I looked at two of these properties today. One was a large log home that is probably worth about $175,000 and the minimum bid will be $3,500. Another is a used car business which contains a LARGE steel building and huge commercial lot. This is being auctioned for $15,000 in back taxes. I will look at the other two properties in the next couple of days.
At any rate, there seems to be many potentially GREAT deals available in the next week or so. After a little thought, I decided to proceed with the offer on the mobile home today. I put in two offers. In the first offer, I proposed $17,500, all cash, with the closing to be in 5 business days. I felt that the all cash offer with fast closing would be very powerful. In the second offer, I agreed to pay $20,000 for the same property if the owner would finance the deal with a 10 year term at 5% interest. I put in the offer at noon and at 2pm, I received the seller's reply. He countered with $20,000 all cash. This is still a very good deal, but I declined it. I told the seller's agent that I had several other deals in the works and that if he changed his mind to let me know by 5pm tomorrow. We'll see what happens.
My reasoning for turning down this offer was that I have several great deals available. The mobile home property has been on the market (at a higher price) for over 200 days. I don't anticipate it going anywhere in the next few days and I want to see what happens with all these other deals. I believe that I will still be able to buy it for $20,000 next week if the other deals fall through. It is also still possible that the owner will think about my offer tonight and accept it tomorrow. Either way, I'll be happy.
I'm already starting to smile about tomorrow. Why? Tomorrow is the 1st - RENTS ARE DUE!
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1 comment:
I enjoy your posts a great deal. Maybe you should publish a book called "The Great Adventures of a Property Manager" BTW, you are a good writer.
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