Mobile Home Note - Posted by Reif

Posted by David Alexander on March 24, 1999 at 14:13:25:

Yes, definitely Good enough, if it’s good enough for you it’s good enough for me.

How much money would like to place at that kind of yield?

You have to decide what kind of yield you want? And only you can decide that. If you have money to place and don’t want to actually do the deals, I would say sure. On the other hand I create Mh notes at much better yields. Heck I create Re notes at better yields. What’s it worth to you to place the money in a deal rather than create the deal is the real question?

Another little bit of food for thought is could you find someone to refinance the people, could you restructure the payments, and on and on.

David Alexander

Mobile Home Note - Posted by Reif

Posted by Reif on March 24, 1999 at 11:07:22:

Posting this on this forum because it’s a mobile home note; they deal mostly with RE on the other side.

Got a chance to buy a mobile home note from a VERY motivated seller.

14.4K balance, 8.5%, 94 months left.

I’ve got him down to 10K, which would be 19.9% yield.

I think I could get it for between 9 and 9.5K.

Seller claims he can document 100% on time payments for the last two years and the MH would sell for 27K.


Is 20% yield on a MH “good enough?”

Besides ensuring that the home would indeed sell for 27K, what other due diligence should I do?

I’m assuming I should get an estoppel letter from the owner.

I’m also not quite sure of the mechanics (paperwork) on the sale of the note.

Anything else?