Financing for used MH - Posted by Tom (NY)

Posted by Mike on August 12, 2001 at 23:50:52:

Has a person in the market to buy a moble that interest is nothing to pay. The problem is finding a seller willing to do so.


Financing for used MH - Posted by Tom (NY)

Posted by Tom (NY) on August 11, 2001 at 15:10:47:

Hope you can stand another question from a newbie. I have just begun my education, and in my calls to a few PM’s, one of them told me that financing is indeed available here in Rochester, NY for used Mobile Homes, and at rates around 10.5%. If this is true, how is it possible to get people to pay the “industry standard” 12.75. Maybe I’m simply missing something. Thanks in advance for any responses.

Re: Financing for used MH - Posted by berty

Posted by berty on August 15, 2001 at 09:09:19:

hey tom,

where in roshester are you?

Re: Financing for used MH - Posted by Tillman (DE)

Posted by Tillman (DE) on August 13, 2001 at 08:52:25:

I’ll tell you, after I lost my business and had to file personal bancruptcy, I needed to get a car. The only loan I could get for a car was at 25%. I took it, bought a late model car. 6 Months later, I bought my Wife a late model minivan, also financed at 25%.

I could afford the payments.

That’s all the credit I have since my bancruptcy. It’s been 2 years and I’ve paid them both off, with every payment on time or better.

Now I qualify for a mortgate at 7%!!! It was worth paying the 25% on those two loans to rebuild my credit!

Maybe you are missing something here… - Posted by Tim (Atlanta)

Posted by Tim (Atlanta) on August 13, 2001 at 06:19:31:

If the bank is offering 10.5% financing then great!!! You can cash out of the mobile homes instead of carrying the financing. How much money could you make if you bought mobile homes at $4000, and sold each of them for $8000 cash? You double your money right off the bat. Now if your buyer can’t qualify for the 10.5% money, then you talk about financing it yourself. Now the buyer is very happy with 12.75%. Just make sure to try to get them financed through the bank first. To me, a cash deal is always better than carrying the financing. I’ll take that cash every time. Certainly no risk involved there.

Just my .02

Money on the Bubble - Posted by Karl (Oh)

Posted by Karl (Oh) on August 11, 2001 at 20:54:01:

The folks we sell homes to with private financing typically can?t obtain the same bank financing that your PM is talking about. A 10.5% interest rate is a good rate for a used mobile home if the buyer has good credit. But as the buyer?s credit score drops, the bank?s interest rate starts going up. If that score gets too low, the bank won?t make the loan. That?s where we come in. We work with those folks who are on the bubble, can?t quite get a bank loan, but are good enough to get into a park (slow on their credit cards, but perfect rental history, for example), and worth taking a chance on with a cheap home and a nice down payment. These folks are used to paying higher interest rates, they know there credit is shaky. I?ve never had a buyer tell me my 12.75% interest rate was too high. They?re just happy that I?ll work with them when the banks won?t.

If a buyer calls me with okay credit, I take a bank loan application over the phone and try to get them conventional financing. That?s a cash deal for me. But most buyers I talk to don?t qualify for bank financing. After all , that?s why they?re calling me. After they?ve been turned down by all the banks, my interest rate looks pretty good to them, no matter what it is.

But the profit isn?t really made with the interest on the loan. That?s just the gravy. Charge them any interest you want. Don?t charge any interest at all. The real profit is the spread between what you buy it for and sell it for.

Karl Kleiner

Re: Financing for used MH - Posted by Sean

Posted by Sean on August 11, 2001 at 18:46:23:

Mobile home financing available? Of course it is. But what kind of a credit score must the person have to get it? How much down must they put? Does the company have limits on how new that mobile home must be? Will the Buyer have to pay for a mobile home appraisal? How much will that appraisal cost? What about points, origination fees, etc.?

Re: Financing for used MH - Posted by Lee R Ramey

Posted by Lee R Ramey on August 11, 2001 at 17:03:36:

You are not your own customer, people buy on emotion and if moma wants that house because of whatever reason, they will get it. You know what intrest rates are because that how you have trained yourself. The people we are going to help are ones that have no financial education, nor would they put in the time and effort, that you have, to get it.

Is that taking advantage of anybody? Well is a farmer that has less than a penny in a seed apologetic when he sales you a tomato or lettuce at nearly a buck?

You are providing a service to ones (hopefully honest hardworking)that have just barely been left out of the prosperous mode of life. If there was not deadbeats then we would not have to have a higher rate to cover the losses. That the real world. Can’t change it, just adapt. Money is the reward of learnuing how to play the game and take the chances.

Your attitude will make or break you, remember as Mr Tews book title you get rich by helping others. You deserve the profit, it is not a dirty word.

I’ll get of my soapbox now.

Re: Financing for used MH - Posted by Chuck (AZ)

Posted by Chuck (AZ) on August 11, 2001 at 15:40:06:

You apparently haven’t noticed, but interest rates for home mortgages fell below 7% this week. As a result, housing construction is on the rise… big time.

Which means that alot of people who wouldn’t have bought a stick-built home before, will now be moving in that direction.

And as a result, the market is about to be flooded with “barely used” mobile homes that are not good investments from a financial standpoint.

But that won’t stop those who are tired of living in an apartment and ready to own their own home, regardless of the price.

Which of course takes us to the infamous seller carry-back mortgage.

Are their deals to be had in the coming months? Yes.

Will you be able to do them? That depends upon your resources… and/or your mode of thinking.

Re: Money on the Bubble - Posted by Bonnie

Posted by Bonnie on October 09, 2006 at 15:10:48:

Hi Karl! I have a friend that is needing help. The MH is in Reno, NV. Would you please give your contact info…phone# etc! Thanks!!

Re: Money on the Bubble - Posted by Mike

Posted by Mike on August 12, 2001 at 23:41:59:

I Can relait to what you are saying. I am one of those with not so good credit. All past stuff but nothing building me back up so banks won’t touch me. If I could find some one to give me a 12.75% loan I would be tickled to death.


Re: Financing for used MH - Posted by terryr

Posted by terryr on August 11, 2001 at 16:20:27:

we routtinely charge 18% interest on seller financed loans and HAVE HAD NO TROUBLE getting it!

Re: Financing for used MH - Posted by Mike

Posted by Mike on August 12, 2001 at 23:48:26:

I gaurentee there are people like me that will pay 18% I would even consider paying 20 percent on a 4-6 thousand dollar loan for a mobile home just have to find some one that has one they want to sell. Here in western washington they are hard to find. As people move from a mobile home into a conventional house there are people standing in line to move in regardless of the interest as long as the payment’s fit into there budget.


Re: Financing for used MH - Posted by Chuck (AZ)

Posted by Chuck (AZ) on August 11, 2001 at 19:23:39:

I think you missed the point I was trying to make…

Interest rates have dropped. When interest rates drop, people make loans… people buy things they wouldn’t have before… the economy is stimulated… recession is avoided.

Basic Economics 101.

I think you also missed my point about a potential opportunity… the opportunity to make a fast buck by dealing in higher-priced (barely used) mobile homes.

As in… buy, re-sell, dump the note… take the cash and go on to the next deal.

Re: Financing for used MH - Posted by bob

Posted by bob on August 11, 2001 at 17:42:03:

AWESOME - just awesome… By the way, the difference between the monthly payment on a $6,000 note, payable over 36 months, between 18% & 12.75% is just $15.47 (216.91-201.44).

However, if you do just one “lonnie deal” a month & you have 36 notes outstanding, all the time, at the same $6,000, its an additional $6,683.04 of interest income in your pocket each year…