Thanks Phil. I was having a frustrating day adn talking to all the wrong people. Some folks just aren’t cut out for certain types of deals, but that creates opportunity for us!
25% to the investor is my target mark depending on how much of the note they want to buy. The thing is that I don’t mind holding the note as I am making a great return anyway, but I want some cash out to buy some more homes in the same park.
If I had $500K I would buy all of these I could and collect my checks!
I am trying to sell a note on a lonnie deal I did, but nobody will touch it for various reasons. Too little down, bad credit, not seasoned enough, value of home vs amount owed is too low…blah blah blah.
i totally understand their concerns so I was wondering 2 things. Are there any Note Buyers for Lonnie Deals that aren’t affraid? Secondly, maybe I could start buying notes for you lonnie dealers if you want to cash out. I am not rich so can’t just throw money around, but would be interested in partials etc.
Everything is for sale, but at the right price. If you were trying to sell the notes at the same yields as if they were Real Estate notes, you are going to meet with no success. Mobilehome note buyers are taking a huge risk, because the home is depreciating as fast or faster than their payment stream, so seasoning offers very little protection for the investor. Mobiles are usually purchased with very little down, again, exposing the investor to potential risk you typically don’t find in Real Estate notes.
Bottom line is if there is a default in a mobile note, the investor must decide to pay ground rent and try to sell the repoed home, or abandon the home to the park owner and lose that part of the unrecovered cost of the note.
You should have success marketing notes if you offer the note buyer a minimum 24% yield, and possibily more in the case of an older home. Basically, you gotta buy these places right in order to make any money selling notes.
Everyone is entitled to my opinion.
Phil Pelletier