Posted by Anne_ND on December 28, 2006 at 09:47:47:
You don’t say how long your friend has lived in the home, but I assume it’s fairly short, otherwise you could just ask them to refinance it in their name.
I’d check with local landlords and others who like to buy cashflow. Depending on your friend’s credit and job situation, you could expect to get 40% - 75% of the face value of the loan since it’s a nice home. If you season it longer you’ll get a better price. The problem is the home is in a park. That’s why you won’t get the kind of cash-out that you would with real estate.
What rental terms did you get from them? Any credit toward principal each month?
Another thing to note: if your friend has really bad credit, then even a good payment record to you will not increase the value of the note, as they may feel a sense of obligation to you, but not to an anonymous lender.
Investor Manufactured Home Loans - Posted by Alan Silva
Posted by Alan Silva on December 28, 2006 at 07:38:56:
Howdy Y’all,
I am glad I found this forum. This looks like the place for answers. Here is my situation. A good friend of mine needed a place to live in a hurry. I had a bit of cash left from a HELOC and I used it to buy a manufactuered home for them.(No time to get a normal loan). I put them in with a lease option. 1-3 year term. THey gave me around $1,200 option premium. I bought the home for $33,000 and have it ‘sold’ under the lease option to them for $41,000. It is a nice 1998 MH with NO land(park) around 1,200 sq/ft. Now I am looking to get my cash out becuase I was planning on that cash for another deal(I only used it for this because it was an emergency). I have not been able to find a broker that can give me a loan to get my cash out. They tell me that they can only give loans to ‘owner occupied’ Any ideas? Thanks so much in advance