Does this MH Note transaction really make sense? - Posted by KenH
Posted by KenH on September 16, 2004 at 15:21:22:
I am a Mobile Home Dealer in Houston TX.
I can easily produce 15-30 notes a month once I find investors willing to purchase notes at a discount yielding 15 to 17 percent to the investor.
Do these CASH FLOW/ MH Note investors really exist?
I primarily sell Brand New single-wide, Vinyl/Comp, Wind Zone 2, 16X80 Mobile Homes to New Immigrants who do not have a credit bureau or Social Security Numbers but good Job time and Job References.
These homes will be placed in Parks with NO LAND involved.
Here is an example of how I see the process working
I would sell a NEW 16X80 for $38,000 on the following terms:
Sale Prices: 38,000
10% down: 3,800
Note value 34,200
Contract Term: 120 months
Contract Rate 12.99%
Contract Payment: 510.44
I would keep the Down Payment and sell the 34,200 note
At 15% yld the 34,200 note would be sold for: $31,638.59
At 17% yld the 34,200 note would be sold for: $29,365.89
For those who can purchase 20 or more Notes at a time we could look at a 18% yield where
At 18% yld the 34,200 note would be sold for: 28,328.69
If you can help me figure out how to sell these note please let me know