Re: MH buyer wants us to refinance. - Posted by Lonnie
Posted by Lonnie on February 04, 2000 at 09:23:06:
The others have given you good advice. And I think the best point is, don?t get too greedy. When you get a good, reliable and steady paying customer, you should concentrate on doing what it takes to keeping that customer for life. This appears to be the case here. So don?t be blinded trying to figure how to make a few extra bucks this one time, which might cause you to loose a good customer and a lot of future bucks.
I have a young couple that?s been making me car payments for the past 7-8 years. They just made their last payment last week, and they?re now looking for a pick up truck. Guess who they will get the loan from to buy that truck? They?re more than happy to pay me 18%, because they know they can get the money when they need it. But if I should get too greedy, they might find somebody else to borrow from and I?ll be the loser.
Last month, one of my good paying MH buyers needed to borrow $2,000. All she had to do was come by the house, sign a note and she had the money. I?m charging her 18%. Not near as much as flipping a little cheapo MH, but all I have to do is write a check and collect payments, and I don?t even have to leave the house to do that. (Money doubles every 4 years at 18%, so that?s not too bad.)
Chances are that sometime in the near future your buyer will need new appliances, AC, another car, or money for something. When that happens, you will have the chance to make a lot more money then, than by trying to squeeze a few more bucks from this deal. Sometimes a little squeezing can turn into choking. Also, you will have a satisfied customer to spread the word on what a great guy you are, and a chance for new customers. Hope this helps.
Don?t know how much is left on your loan, but if you figure the actual dollar amount between 18% and 21% I?ll bet you will be surprised at how little it will amount to. Sometimes we get too caught up in percentages instead of dollars.