Got this call from MH dealer- Please Help - Posted by Brian, WI

Real Estate Investing
1

Posted by Shawn J. Dostie on November 04, 2002 at 19:07:51:

Might look at the duplex, run some numbers. It looks like he’s thinking of you as a lender and would be stunned at a Lonnie deal or buyin a MH note @ .50 on the $$$

Good Luck,
Shawn(OH)

2

Got this call from MH dealer- Please Help - Posted by Brian, WI

Posted by Brian, WI on November 04, 2002 at 12:04:21:

I’ve been running an ad in the major paper stating I buy mobile home financing contracts(just to buy a few local’s to learn the business more I guess).

Anyway today I get a call from a mobile home dealer who saw the ad and he ran a couple of things by me that I’m not sure would fit into the “note” business or not so…

1)The MH dealer said he puts new manufactured homes on lots with basements and it costs about $52,000 for that home. The dealer said something like he has to use his own money until the title policy goes through then he gets his money from the bank who has a qualified buyer for the house and lot. The dealer is looking for me to finance the $52,000. What would be in that for me?

  1. The dealer has listed mobile homes for sale, most 10 years old and older. He suggests I offer the financing on these at at least 12%. Again is this anything to pursue?

  2. Lastly, the dealer said he could sell me, “At a HUGE discount” 1-story duplexes with 3 bedrooms on each side for about $15,000 less then he would the general public. Using the above example, $37,000 instead of $57,000.

Is there anything here to look at further? I told him I’d call back in a day or so. I’ll also post this on the Mobile Home forum.

Thanks

Brian,WI

3

Re: Got this call from MH dealer- Please Help - Posted by Jim - FL

Posted by Jim - FL on November 07, 2002 at 20:49:15:

Number one sounds like he wants you to factor. That is he wants to sell his recivable to you. I’m no expert but with good due diligence am told there is good yield here. Works like this: You give him 70-80% of his Recivable, in this case 52K * .80 = 41.6K. When you collect the money, in say 30 days, you give him the remainder, less your fee. Fee is normally in the area of 5% for a thirty day deal. Make sure you do your due dilly.
Number two - buy DOW over on MH channel. You can do better with your money than what this suggests.
Number three - Would do some comps and also find out what competitive rental situation is.
Just my 2¢