Does anyone buy notes for lonnie deals? - Posted by Jim Schad

Posted by Jim Schad on May 29, 2003 at 20:52:53:

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!

Does anyone buy notes for lonnie deals? - Posted by Jim Schad

Posted by Jim Schad on May 29, 2003 at 12:12:03:

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.

Re: Does anyone buy notes for lonnie deals? - Posted by Phil Pelletier

Posted by Phil Pelletier on May 29, 2003 at 19:31:14:

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

Re: Does anyone buy notes for lonnie deals? - Posted by Dave Austin

Posted by Dave Austin on May 29, 2003 at 15:39:39:

Hi Jim,

We buy these notes. My partner Jim just returned from his trip and should be giving you a call any minute now. Sorry for the delay.

Dave
www.mobile-home-notes.com

Re: Does anyone buy notes for lonnie deals? - Posted by Harry W, Murphy

Posted by Harry W, Murphy on June 26, 2003 at 24:37:23:

" 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 "

First, there should be recourse, that the noteholder will obligate all outstanding expenses incurred.
That is what I ask for as recourse.

Second, the P/M has real incentive to ensure that the m/h owner keeps current on the lot rent, as well as making sure that the m/h stays on the site.

Harry