Acquiring new loans to sell owner finance - Posted by ScottSC

Posted by Michael Morrongiello on November 14, 2000 at 22:28:18:

A good bartender makes his profit in a similar fashion. They buy wholesale and then sell retail. I love this program and especially mobile home and land type “paper”

Mobile home and land paper is one area where the “little guy” can compete with the larger finance outfits and make nice profits.

Please be aware however that IF you choose to sell on a lease purchase agreement you clearly and conclusively document any “down payment” funds your receive and the monthly payments. It would also be wise to build a clause into the agreement that allows for you to covert the lease purchase into a more traditional mortgage or trust deed and note instruments at your option in the future.

Otherwise when it comes time to sell your “paper” to a note funder (like ourselves)it may be problematic in purchasing a “lease purchase” type agreement which is NOT recogized as a bonafide instrument of indebtneness.

To your success,

Michael Morrongiello

Acquiring new loans to sell owner finance - Posted by ScottSC

Posted by ScottSC on November 13, 2000 at 15:27:34:

Buying a mobile home and land at 15-25K creating a new loan to me for $5000.00 over the cost, then renting to own for 55-65k with a large down. Paying out $150-300 per month and receiving $550-700 payments. With good credit, how many loans could I have performing like this one?

Also is renting to own a good way to sell these?
I have read that lease purchase could cause forclosure and renting to own, simply requires eviction.