Selling a note you create at closing is not easy if you don’t have connections with quick access to funds. You might post this on the cashflow forum to see what advice you get in terms of advertising your note. I don’t sell notes, so I’m not sure where you’d post that.
Alternatively, you could borrow funds from a small bank, or a private individual, or look farther afield for hard money. I assure you, there is hard money available for MHs on land.
Have you gotten inside the home? Be sure to understand the extent of the repairs needed (esp. septic!) and get a good idea of what the land/MH can sell for fixed up. Don’t forget we’re in a bit of a slump now and it might take longer to sell the property, and it surely will take longer to fix up than you have estimated (been there, done that).
Tony and Scott have a lot of posts on precisely this kind of deal in the archives, and also will be discussing these kinds of deals at their bootcamp in August.
Don’t worry if you miss out on this particular deal, you’ll find another one if this one gets sold. Just don’t jump on this one because a realtor told you to do so. It’s good you’re out there looking.
Ok, I have an opportunity to buy a mobile home with one acre of land for 23000 with HWY frontage. The appraisal is around 40 K. I have already spoken to my realtor friend and the deal will go quick. It is a foreclosure. With repairs it could sell for more than 40K. It even has a storage building out back. My question is, how do I create my own personal mortgage and sell it to get the funding that I need for this deal? Hard money lenders have shyed away because it being a manufactured home and the price is so low. Once I have a not created, how do I sell it quickly? I want to sell the property within 3 months and I can easily do that in the area its in. My local newspaper does not have a section entitled “mortgage” or “Notes”. Let me know what you think. Thanks
Re: How to create and sell a note??? - Posted by Ed in Idaho
Posted by Ed in Idaho on June 29, 2007 at 22:59:33:
I’m sure you’ll get alot more input on this, but have you thought of doing the deal, selling the mobile, and renting the land out? Good way to build property portfolio. Also maybe you could put more trailers on the 1 ac. and sell them too. Also consider what the zoning is or could be for the land, is it or could it be commercial (more valuable). If thats the case sell of the mobile and the land seperately.
This really sounds like a good candidate for a ‘land bank’ deal.
As per your original question, has the mobile been attached to the land and is it now considered real estate? If it is all real estate, there are ways to lock up the property for the next three months, sell the property quickly if it is a good deal, and let the new buyer bring the financing to pay for it plus your cut. I’m sure more info is on the way.