I’d keep shopping. I’d want a lower & a fixed rate. I just got one through a small bank. My last one was for 10 years. Did a 15 year in Jan. I make extra principal payments every month. Note that on commercial loans, they can be called, so you have to be able to scramble if necessary.
Some folks use HELOCS or biz LOCs. One thing I’d include in my shoppiing list is a lender that wants to do biz w/me again. If this is the only loan they can do for you, it might not be the bother. You are looking for a bank that wants a long-term relationship. Tip: watch the garbage fees.
Anyone know about the company ‘Beneficial Homes’? - Posted by Ryan B (KS)
Posted by Ryan B (KS) on July 16, 2007 at 09:01:52:
I saw a DW for sale and called about it. Turns out that its a bank repo being sold by the company Beneficial Homes (the company sells repos for banks). I talked to the guy for a while, told home what I do w/ the LDs, and decided that I wasn’t interested in the home.
Then he asked me if I’m interested in a line of credit for the MH investing. I asked for more info and he explained that the company works w/ a few lenders to get guys like me some money to by homes. He said he could get me an unsecured personal $20k LOC, or a $50k business LOC. He sent me the application, but I wanted to know if any of you had any experience with this company before I sign any paperwork with them.
Re: Anyone know about ‘Beneficial Homes’? - Posted by Michael(KCMO)
Posted by Michael(KCMO) on July 16, 2007 at 10:16:35:
Ryan,
From what I know, Beneficial is out of STL and basically just re-lists GreenTree (and probably other bank) repos. Nice guys down there in the office, though. I asked them about their LOC one time but didn’t do anything with them. I don’t remember why not. Probably just bad timing. I would look into it and see what they have to offer. Then let me know what you find out.
How’s business going . . . and everything else? Did you get your plumbing job done at the house? Hopefully everything went smooth.
Posted by Ryan B (KS) on July 16, 2007 at 10:51:20:
Business is moving along. I’ve got a lot of irons in the fire right now. I did finish the replumbing job, and I decided to just do the whole house while I was at it. Pex is amazingly easy to work with and the job took only two days.
I’ll be buying another MH later on in the month. Its a nice '79 2br for $2k. It needs no work that I can see, and I expect to be able to sell it for about $6k or so. We shall see. I don’t know how strong the market is for 2 bedrooms really.
I put in an offer on a bank-owned (Greentree) L/H, despite the fact that I don’t really know what I’m doing on those. But its a 1999 DW on foundation in a ‘manufactured home community’ (no zoning problems). The DW is nice despite the infestation of fleas. I offered $16,300 for it and they countered by coming down from $50k to $40k. I countered with $20,700, so we’ll see what happens. Seller agreed to pay for a septic inspection. I should be able to rent it for about $600 pretty easily.
Now, something that I did want to ask the board about is the financing on this L/H deal. I expected to have some trouble securing the financing. I did get a bank to agree to finance, even though they weren’t real comfortable with the idea of a DW as an investment property. Here are the terms that they offered me:
20% down, 1/1 ARM starting at 9.8%.
I feel very confident that they home will appraise at around $60k (possibly more). But obviously the bank’s terms are less than ideal. Any opinons?
