mobile home paper....Value? - Posted by Scott AZ

Posted by Scott Az on January 05, 2001 at 08:29:48:

thanks for the respone. you have shed some light and i thank you for it.

mobile home paper…Value? - Posted by Scott AZ

Posted by Scott AZ on January 04, 2001 at 18:47:57:

On a well constructed mobile home note, what is the percentage (Industry average?) of a note when I sell it to a investor. I understand there are probably a hundred variables to the value of a note, but can anyone give me any guidelines to gauge the approximate value(percentage) of a mobile home note? Thanks in advance for any info.

Re: mobile home paper…Value? - Posted by Tim (Atlanta)

Posted by Tim (Atlanta) on January 05, 2001 at 07:14:03:

I know you don’t want to hear this, but it depends. Let me tell you the things it depends on :

Credit of the MH buyer (FICO score)
Year, make, model and dimensions of the mobile home
park condition (pool, clubhouse, looks,…)
Amount of equity the buyer has in the home.
Payment history (if any)
Seasoning (how old the note is)

If you would like to see how complicated it can get, look at David Butler’s material on Americas Note Network site at :
http://notenetwork.com/Reports/Note.Pricing.Guidelines.php3

So you can see that the value of a mobile home note can vary from 100% of face value down to close to 0%. If you have already created a note, you can list it on Americas Note Network for free, and see what you get. I have seen notes go for face value and I have seen notes go for 10% of face value. You can do much better if you cultivate your own group of investors. Talk to family, friends, doctors, accountants, lawyers, anyone who wants to make a good return on a solid investment. Then take care of those investors. Don’t let them take the heat if the note goes bad. Believe me, if you sell that note to a professional MH note buyer, you won’t get anywhere near what you could from your own investors.

One thing you might think about is instead of selling the whole note, you might sell a partial on the note. You can look into Lonnie’s books for an example of a partial. These are more secure for the partial buyer. You get your investment in the MH back to go to the next deal and a cash flow after the partial is paid off. The partial buyer feels much better, since you are making sure that the note pays. He doesn’t have to worry about collections and repos.

Just some ideas to think about.