Posted by john henry on July 08, 2004 at 08:31:39:
I am assuming by a “finance company” you are talking about a small local company such as American Gerneral or other. Most of these do not care what you are using the money for. All they care about is the high interest rate that they will be charging to you. If they happen to ask, tell them it is for car or home repairs. The ideal situation would be to buy the MH cheap enough and get a large enough down dayment to pay off the loan. A better option would be to find a seller motivated enough to sell you the MH on easy terms. Good luck on your investing.
I have very little money to start and no where near enough to buy my first mobile home. I have come up with the following solutions to my problem:
I have a good relationship with a local finance company and made three loans to date in the last four years. Each loan was paid off in no more than six months, furthermore; I feel confident I can get $3,000 - $5,000 from this company to buy my first MH.
2)I have family and friends that may be willing to lend money. This would be ideal for me since the terms would be more flexible. I thought it would be nice to do a few deals this way until I have the cash to buy. Although, if I can make it work on borrowed money I may prefer to continue conducting business in this manner.
My Question:
Can I take out a loan with this finance company ( or any finance company ) where the note will not have a due on sale clause enabling me to finance the home? Is there a type off loan which I do not have to state my intention for the borrowed money?
Of course, I would have to know what my monthly payment would be in order to offer financing on a home and still remain cash flow positive for the remainder of the note. For CHEAP homes I feel this may work. Say, $2,000 or less.
Any and all advice would be much appreciated. I am about half way through DOW so may have simply not read this part yet.