Posted by Chuck (AZ) on April 01, 2002 at 17:45:10:
They’re both good, but I’d go with “Cashing In” and pop the few extra bucks for the deluxe version… it comes with software to evualate and track your notes.
BUYING MOBILE HOME NOTES? HELP! - Posted by Allen
Posted by Allen on March 31, 2002 at 15:33:18:
Hello Lonnie, Ernest, and anyone else with experience in note investing.
Has anyone bought existing mobile home notes (in retirement communities) for 40-50 cents on the dollar? What would be awesome for me is if I could buy a $20,000 mobile home note thats been getting paid on time for awhile (seasoned) and buy it for $10k or less. I would like to be able to take in at least $500 per month or more on my $10k investment. Is this possible or do I have to buy the mobile homes, fix them up, and then finance them? 
I build and sell Internet businesses which is where my passion is so I dont want to get caught up in the “Realestate Business”… Has ANYONE in this forum ever bought existing notes like Im speaking of and then just started collecting on a monthly basis? Is it easy? Do the mobile home holders usually keep paying on time when you take over the notes? Do the people selling the notes usually sell you a bad note? Please reply ASAP, all opinions are greatly appreciated.
Re: BUYING MOBILE HOME NOTES? HELP! - Posted by Lonnie
Posted by Lonnie on April 03, 2002 at 08:12:23:
Hi Allen,
I?ve bought a number of MH notes, and never paid more than 50 cents on the dollar. But not in senior parks because we don?t have any here. But a note is a note, so it wouldn?t really matter to me as long as I?m happy with the terms, security and yield. Although, I?ve always stuck close to home in all my dealings because I find more business in my back yard than I can handle, so there?s no need to go elsewhere.
Except for MH notes, I?ve always found that I can create much better notes than I can buy. I can create my own notes with MH?s on a regular basics that yield in excess of 50%, but I?ve never been able to buy notes with that kind of yields. Also, when I create a note, I get to negotiate the terms, pick the maker, collateral etc. When you buy a note, you buy the note as is. You can?t change anything unless all parties on the note agree to the change.
?Is it easy?? Depends on your definition of easy. The note business is a great passive money making business, but like any business, you must know what you?re doing, or you will pay for some expensive seminars.
?Do people sell you a bad note?? You bet they will. But it?s up to you to determine if it?s bad, not rely on what someone says. There are only two reasons people sell notes?it?s either a bad note, or they need cash.
Allen, in my opinion the note business is the best business going, if you will take the time to learn the business.
Best wishes,
Lonnie
Took ya long enough… - Posted by Chuck (AZ)
Posted by Chuck (AZ) on March 31, 2002 at 17:35:27:
I tried to get this concept across several months back and it fell on deaf ears.
It’s a lot easier to find mobile home notes, than it is to find a mobile you can afford to buy, fix, and then hassle with re-selling, not to mention dealing with flaky buyers and cranky PM’s.
When you also consider the fact that most of the people starting out in “lonnie-deals” have very limited cash to do so, it has added appeal.
If you don’t know anything about the note business, as it relates to mibile homes, invest in a copy of “Tin Can Alley” - available in the books section.
And just in case I haven’t said enough to get you interested in doing this, where do you think I got the trading material that I used as down payment on my first park?
The story of which is a book in itself…
Re: BUYING MOBILE HOME NOTES? HELP! - Posted by Allen
Posted by Allen on April 03, 2002 at 09:23:37:
Lonnie,
I just spoke with an aquaintance of yours by the name of John Greer in Sarasota Florida. He told me how successfull hes been in the auto paper industry. He told me that hes only lost one note since hes been in the business. He finances $5000 used cars at 29.99% interest. That means hes making $300 per month on a $5000 investment. That seems to be around the same as with mobile homes. What’s your opinion on the auto paper industry? I know your specialty is mobile home paper, but down where I live (Sarasota), there isn’t the same opportunities as you have up where your at. (No where near as many that is)… Most of the mobile home parks here are retirement communities. Please give me your best advice on auto paper and what you think the pros and cons are. Thanks, Allen.
…or you could - Posted by Chuck (AZ)
Posted by Chuck (AZ) on March 31, 2002 at 17:42:38:
get Terry Vaughan’s “Cashing In”…
Re: BUYING MOBILE HOME NOTES? HELP! - Posted by Shawn Dostie
Posted by Shawn Dostie on April 04, 2002 at 19:26:53:
Auto paper is NOT the place for a beginner! I operare a used car lot and have flirted with the financing end of it, but haven’t pulled the trigger yet. Taxes are one problem, but the biggest problem is that cars, like mobile homes depreciate. Especially if they stop running. Condition is HUGE in determining value of any used vehicle. The people that rely on you for financing DO NOT qualify for bank financing and they will stop paying in many circumstances. I am carrying 2 customers currently and just spent $1000.00 replacing a tranny. She’s paying, but not up front, I’ve had to add it to the end of the note and adjust her payment. That being said, if you have a million or two, maybe we should talk by email…
Good luck and be careful,
Shawn
Re: …or you could - Posted by RBlack
Posted by RBlack on April 01, 2002 at 16:39:04:
WEll Chuck,
Which one is it, Tin Can Alley or Cashing Out?
We have had a couple of hefty mortgages pay off leaving us collecting a whopping 2% in the bank on the money. the idea of buying notes instead of mobiles sounds good to me.
thanks
Re: BUYING MOBILE HOME NOTES? HELP! - Posted by James Buster
Posted by James Buster on July 03, 2002 at 01:01:01:
>Taxes are one problem, but the biggest problem is that cars, like mobile homes depreciate.
Which, presumably, is why one charges a high interest rate. I would think that the biggest problem is that your collateral is highly portable and maintenance deferral is a first choice of distressed payors.