Does this MH Note transaction really make sense? - Posted by KenH

import · September 16, 2004, 3:21pm

Posted by Lyal on September 17, 2004 at 08:14:51:

Ken,
I don’t buy notes but have been around this business for 6 or 7 years and have talked to a number of note buyers and sellers in that time. From that I can tell you that most note buyers would be looking for a higher yield that what you are offering (25% or so) with you servicing the note, and full recourse in the event one goes into default or pays off before a year or so (as in replacement of the note with a good performing one instead).
Sounds like a lot I know. Just the way it is.
All the best, Lyal

import · September 16, 2004, 3:21pm

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

Kenneth Hocking

import · September 18, 2004, 10:03pm

Re: Does this MH Note NEED TO BE FLEXIBLE - Posted by Dave Hayes

Posted by Dave Hayes on September 18, 2004 at 22:03:02:

Ken,

Just wanted to start a dialogue with you about what you are trying to accomplish. I am a note broker, and currently brokering a portfolio of 24 notes. I have several groups that buy mobile home only paper, but trying to sell this paper at the yields you are suggesting is not realistic?

Most folks I know want to see a yield of 20-25%. Your collateral is good, your price ranges are good, but buyers are challenging, and the discounts that you, up to this point, have considered feasible on your end, will create challenges that likely will not be able to be overcome.

Do you have any flexibility with this, since you are attemping to do volume paper sales?

Let me know, would love to talk more. My best to you, Dave

import · September 17, 2004, 9:49am

Re: Does this MH Note transaction really make se - Posted by John

Posted by John on September 17, 2004 at 09:49:58:

Kenneth,

Send me an email and we can discuss the possibilities.

John