The life and times of an Arizona Investor

This will be my personal journal to document my failures and successes during my real estate experiences in Arizona. All stories, thoughts, and successes will be documented..

Monday, August 01, 2005

Ball is rollin - House#1

I've switched offer #10 to house #1 since I am now officially under contract.

Today went surprisingly smooth. I signed the contract today and I gave her a $50 dollar deposit.

There are a few issues. First, the title does not state the correct lot #. She knows about this. Secondly, she said that she has authority to sell the place, but on the two titles (one for each side lol) it has her husband's name and her name on one, and the other has only the husband's name.

So technically, she owns half as far as I can tell. Good thing that he will be coming in to help her move, so he will need to straighten this out.

Secondly, she has not paid her property taxes and does not know how much she owes. She thinks they are about $200 a year, so she might owe $400 total . At least she expected this and said she will pay this off before closing. I will assist her in finding out how much.

One thing that kinda of sucked was I felt I needed to put the husband's name on the contract as well so technically its not completely official because he did not sign it. I should fax it over to him this week.

On the flip side, the hardest part of this deal (the property manager) turned out to be the easiest. She reminds me of a tired government official. I got in before she opened the office and I waited for her on the couch. She open the door and just stared at me for 10 seconds like I broke in to the place. I finally asked, "Are you the property manager". She responded abruptly. I told her my business and she immediately copied and handed me some forms. Her only concern was getting the lot rent. She didn't care if I rented or resold it. Interesting. She will have to qualify the tenant and does back ground checks. As far as I'm concerned this is fine with me. I don't want to put a criminal in my mobile either.

After a few minutes, she warmed up to me and she explained that the one mobile that I wrote previously, sold for 15k and the owner is taking back paper of about $200 a month. He gave them 3-4k down as well. This is going to be just like my deal! I looked at that mobile today, and it is in better condition right now. The new carpet does look good. When I get done though, it will be nice, I have left over laminate flooring that I plan to use for the living room. It should look just as nice.

Another issue that I completely forgot about is having a dealer's license in Arizona. Technically, if you buy, and resell mobile homes you are a dealer. I found out today that it costs $570 dollars , w/ $270 maintenance each year! I have to take the test in Phoenix and pass a back ground check and finger prints. Holy crap...

I called the mobile home housing and asked the question but I got conflicting answers. The dept in Phoenix said if I only do one this year, its not necessary. However, I thought the Tucson office said if you do one or more , you need it. Since I'm puchasing this under my LLC, I hope they won't give me grief if I don't have one. I'm pretty sure I'll be alright, but I will ask some of my investor friends' opinions. I need better definition between "dealer" and "purchaser". If I do more than one, I'll have to spring for the license.

Another nice surprise is that she had a washer /dryer that I did not even know about. Everything is staying!


Good investing,

Bginvestor
|| Bginvestor, 5:19 PM

3 Comments:

Oh, wow, I had no idea you had to have a license and dealer status to buy/sell mobiles. I would say, if you choose not to get the license, get something in writing saying you don't have to do so. Then again, that might still offer little to no protection. Perhaps you'd better just get the license.

But, what differentiates an owner-occupant from a dealer? Surely the people who buy mobiles to live in them don't have to have dealer status.
Blogger Trisha#1, at 7:27 AM  
Maybe if you sell this as a lease option, you won't have this issue. You'd be a landlord for a year or two before selling. I wouldn't ask any government official about this. They probably won't have a clue what you are talking about.
Blogger Shaun, at 8:18 AM  
I called the manufacturing department in Phoenix and they said that if I did just one, I wouldn't need a license. But if I did more, than legally, I would need to do so.. The covers is for "consumer protection"

There is no way I would do a lease option. I don't want a landlord -tenant relationship, but rather a seller - buyer relationship.

This should be no big deal. I talked to a couple of friends that have sold several and they didn't even know about it!!

Thanks for the feedback.

Bginvestor
Blogger Bginvestor, at 11:40 AM  

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