Posted by Bob L on May 02, 1999 at 24:21:18:
A repo salesman,made an interesting proposition the other day.he said that he has many mobile buyers with large downpayment’s,but marginal credit.His problem-lost deals due to credit rejection.His proposition- would I buy the unit’s(at 50 cent’s on the dollar,btw- most of the units are less than 5 yo ) for cash… and resell to his prospects for the down and float the paper! the yeilds would be sufficient to proceed,granting that the “credit rejects” are a fair risk. now my problem- I don’t have the cash to make the purchase(were not talking large amounts,only 5 k at a time,yet i’m just starting and don’t have cash to work with)…now ,I put my brain in creative mode and thought of a possible solution…what if I crank up the selling price a couple of grand over my purchase cost,take the down,and sell the “paper” to an investore at a discount.If I scheduled a triple close,all of the money would change hands simultaneously.big question…where might one find a note investore,who would be willing to buy unseasoned paper,with a marginal credt risk borrower.
I know I haven’t been specific here regarding numbers, I’m only thinking out loud here, I smell a money opportunity here ,yet can’t quite grasp a full plan of action.any help or other scenerios is greatly appreciated
p.s.- thanks, Dirk for the response to my previous question.for some reason the thread was deleted
(script monsters I hope) Well I KNOW I didnt use any profanity in my post. -