Posted by Marty (MO) on July 19, 2004 at 18:04:29:
We didn’t get any collateral. Young couple, good credit, take care of their property, topped out. Cutting their losses on the home and moving in with mom to pay off debt. Note is cosigned by mom. We’ve received two $300 payments on time…
Not ideal, but the only thing we could think of was a wedding album. They offered a TV and computer, but I didn’t want to store their stuff.
Any ideas?
Marty
Any Madness in My Method? - Posted by Mary
Posted by Mary on July 18, 2004 at 12:40:07:
I’ve gotten lazy in my old age and never want to be a millionaire. So I have done the following:
I went to a nice MH Park and checked out the MH’s for sale. Found a nice home owned by a nice couple. I told them I was “looking at several MH’s in the park” and they showed me around their’s.
I called her after a few days and told her I was still looking and wanted to know if she had sold hers yet. She said she had several people look at it but buyers wanted them to finance it, which they will not do as they are moving far away.
I told her I had decided to buy a house instead, but I would help her sell her home in any way I could. I would be willing to finance the MH if she found some good people to buy it. I would send her a copy of the park rules and rental application that the park owners had sent me, and I would include several loan application forms. She sounded very happy I would do all that.
Let’s see:
She does the advertising, the showing, the screening, and I get to do credit reports and collect checks.
I may have to do some real work later but for now it’s “good enough”
Re: Any Madness in My Method? - Posted by Joe C. (AR)
Posted by Joe C. (AR) on July 18, 2004 at 15:37:21:
So all you’re looking for is the interest on the note? What makes this business pay is "buy low, sell high by providing financing. Keeping the seller involve as you suggest precludes you from making any profit except interest on the note. You’d do better buying notes at a discount of face value and increasing the yeild by virtue of the discount.
Just my .02
Joe C. (AR)
Re: Any Madness in My Method? - Posted by Mary
Posted by Mary on July 18, 2004 at 18:55:59:
Thanks, Joe. Like I said, I’m lazy. This seems like a good way to increase my interest from 1.5% to 14.99%
Re: Any Madness in My Method? - Posted by rdlazo
Posted by rdlazo on July 18, 2004 at 21:27:21:
Total price $5,000
You buy the $4,000. note from owner seller for $3,000. and seller get her place sold for $4,000.It is like you bought a MH for $3,000 and sell it for $,4000. this make your return much much better and you did not even own and fixed a place. I am sure this will work on motivated sellers. Try this .
Play your discount number like buy the note fro$3,200 instead of $3,000. This is just an example. do I make sense anyone?
Mary let me know what happen.
we did it kind of like this… - Posted by Marty (MO)
Posted by Marty (MO) on July 19, 2004 at 12:00:39:
the seller owed 8800, we were willing to pay 5000, the buyer was willing to pay 10000. We gave the seller 5000, then loaned them 3800 to pay off the loan, then the buyer moved in. We created 2 notes with both the buyer and seller knowing almost exactly what we were doing.
I would definitely explain to the buyer that if you finance the home, the financed price is 6000 (or whatever). Just financing the price of the home is a high-risk, low-yield proposition. I wouldn’t do it.
Good luck,
Marty
Re: we did it kind of like this… - Posted by Steve-WA
Posted by Steve-WA on July 19, 2004 at 13:54:58:
what was your collateral on the 3800 loan?