Collateral - Posted by DougO(NM)
Posted by DougO(NM) on December 25, 1998 at 13:49:50:
I posted a message in the main forum concerning a possible sideline business I like to start in order to create paper in my area. (For those that didn’t see it, I called several siding contractors looking to get vinyl siding installed on a rental MH we have, none would do it. Ended up buying the material myself and having a resident who is a contractor do it for us. I called an out of state friend who is in the business and he said the only reason they usually won’t do a MH is that the financing is hard to get.
I started thinking there are a bunch of these older homes out there that could benefit from new siding, windows, decks, etc. and chances are that they are pretty close to paid off if they aren’t free & clear. I would have no problem financing them as long as I could lien and hold the title, it would be a great way to create a bunch of little notes for the IRA.
Any reasons why this might not be a nice little sideline business to create paper ? ( We run a MH Community and rental units now) Is there any other way to secure a deal like this if the home has a loan on it and I can’t get hold of the title ? What would be some things to keep in mind should I ever want to sell this paper to another investor ? Thanks for any input.