Posted by Ryan (NC) on January 01, 2007 at 19:40:32:
Define typical… I’ve done partials between 12% and 40% depending on the terms recourse etc. Basically it’s whatever you decide is “typical” with the needs of both parties being met. The person that has what the other person wants normally is the one who sets the terms…
By offering full recourse and having a proven history I find it fairly easy to get money at 12% give or take a little, when I first started borrowing funds to do deals I was paying 18% plus points. I’ve also done non-recourse deals with other active investors at yields approaching 40-50%.
Not sure if you’re looking to borrow or loan but from my experience the following rules seem to apply:
Active investor with a proven history (roughly more than 6 deals) = yields between 10-15% with full recourse are the norm.
Newer investors with limited experience, 14-18% plus 2-5 points but have seen yields up to 36% with full recourse.
Whole note purchases without recourse, yields are often between 25-50%+ and are normally only bought by people local to the unit or in large groups of notes.
Then there is everything else that fits in between… Everything is negotiable! I’d love to find a reliable private lender willing to lend large amounts at prime but the reality is that most private lenders want to do smaller amounts with several people to minimize their risk and maximize their returns unless real estate is involved. Make it work for both parties and it works for everyone!
Posted by patsears on December 31, 2006 at 22:20:31:
Hello,
I was wondering how someone goes about finding investors wanting to buy partials on Lonnie deal notes, especially in the Virginia area. Any thoughts would be appreciated.
Re: Selling partials on MH notes - Posted by Ryan (NC)
Posted by Ryan (NC) on January 01, 2007 at 10:57:51:
Most of my private investors have come from face to face contacts at events. Networking is key to getting the contacts be it a mobile home event or simply a local landlord group… there are people out there that have money sitting in the banks that want a better return but simply don’t know who to contact and the banks are an easy way to safely invest without much thought.
Local investors can be found at REI & landlord groups in your area or you can spend a day looking for properties owned by LLC’s or the “I Buy” people in your counties tax records. A few of those properties will likely have liens payable to individuals or IRA’s instead of banks. This is a pain in my area but it’s all public information and you can access the information at your court house for free.
Want the easy way? Spend a few bucks and attend a couple events a year, meet new friends and the great people from this group, learn a ton of new ideas that will put dollars in your pocket, and talk to others about private money and IRA funds. There have been deals put together at EVERY event I’ve attended by folks that already understand the game…
There is also a lot of information in the archives about this topic, focus on finding people with money that they are already doing deals with and folks with SDIRA’s and you’ll have all the money you need to fund your deals.