how about a bigger bottle of aspirin? - Posted by Marty (MO)
Posted by Marty (MO) on September 13, 2005 at 12:18:46:
doing a bunch of skinny deals would amount to a bunch of headaches, in my opinion. I’d much rather have a larger profit margin and less volume, if given a choice.
However, I do know a guy who does these deals and he seems to be carving out a niche for himself. He’s in an exclusive park and has put stellar buyers in place for the 3 deals he’s done. He’s using retirement funds to do the deals. None of his notes are more than a year old, so I can’t say how well this is going for him.
Someone on the board (John Merchant?) is setting up deals using investor money that may be an option… He just puts the deal together and manages the note for a fee, I think. This may be a way to buy newer homes and create longer term notes.
It seems like Conseco, Greenpoint, and Oakwood all tried your approach with financing newer homes with skinny yields and high volumes…
Keep me posted on how this works out for you-