Re: Newbies idea for creative MH financing - Posted by David Alexander
Posted by David Alexander on February 11, 2000 at 13:24:38:
You can do that all day long, question is do you want to? Ok, a run down of what I mean.
You sell the home for 19k with $500 down. Leaves a balance of 18,500 that you finance. It will look something like this.
13% I, 96 N, 18,500 PV, PMT 310.93
First you need to know the payment the area and MH can support.
Next you have to pay your mom back. Dont know what’s reasonable to pay her.
Maybe something like this.
9500 PV, 8% I, 96 N, pmt $134.30
You now have a spread of 176.63 a month.
Problem arises when starting out no more cash to do more deals. Now you need the guy to refinance. But, he doesnt have to.
Instead maybe get an option to buy the home, for 30-60 days, find a buyer and get them financing. Or buy the home with 4k now and 6k in the future.
The name of the game is Cash to Asset to Cash until you can afford to let the money and and cash flow ride.
Or how about this, you could feasably do three Lonnie deals with the 10k, possibly 4 if you were patient.
That would create about 30k or so in paper, that you could sell or borrow againstor get the payor to refi, to do more.