Posted by James (Ala) on April 10, 2008 at 08:27:44:
Trey,
I am not a note man. I believe that it will depend on how the note is “written” as to whether the buyer can come after you or not. (I think the term is “recourse”.)
Since I am the only response you have gotten after two days, I would suggest trying your question on the “Cashflow” board next door.
James (Ala)
Sell the Note? - Posted by Trey ( Marine in Iraq)
Posted by Trey ( Marine in Iraq) on April 08, 2008 at 10:17:58:
There is something I have been wondering about. Is it advisable and profitable to conduct a Lonnie deal and then turn around and sell the note at a discounted price to another investor but still make profit on your side? Also would you still be responsible for collecting the payments or would you sign ovedr the title to the buyer of the note and let him be responsible?
Also is anyone doing Lonnie type deals in or around San Diego?
Re: Sell the Note? - Posted by John Merchant
Posted by John Merchant on April 12, 2008 at 18:58:50:
I’ve done a number of Lonnie deals just as you describe them here. And I have kind of developed a niche for doing these “Lonnie” deals with OPM.
The way I make it work is to have the buyer buy the MH for a bigger price than Seller actually wants and give a bigger note than his actual debt to the MHP Seller, then I simultaneously buy that note from S, give the registration and cash down pmt to Seller, and give the Seller a discounted amount of cash for his/her new note.
So at “closing” at the tax assessor, where our MH titles are transferred, the S walks out with his/her full 100%, B walks out with his/her MH Registration, and I walk out with B’s note to my investor and me.
For my profit, I either take an agreed amount off the top for my fee, or have the buyer give me a small 2d note, also secured by the title on the MH, where that B makes a payment to me every month for a year or so.
So far all is working will with these and although I have learned to always caution the financer guy/gal that we might be getting the MH back, hasn’t happened yet.
Do make a written agreeement with your financing guy/gal as to how it’ll work if all is paid as scheduled; or if he/she/you have to take it back and do it again.
Good luck here and let us know what happens for you.