Sell the MH, sell the note ques. - Posted by Glen SoCal

import · September 20, 2003, 7:41pm

Posted by Glen SoCal on September 21, 2003 at 12:18:17:

Thanks Tony. I remember seeing Tin Can Alley quite a while ago…when I wasn’t pointed in that direction, forgot it existed.

import · September 20, 2003, 7:41pm

Posted by Glen SoCal on September 20, 2003 at 19:41:41:

Hello all–

I’d like to do some Lonnie deals, then discount the notes to generate some capital.

I can’t hold on to my deals at this time. I don’t have enough cash to do deals, and then operate on the payment stream of one or two…well one deal… then I’m tapped out. I realize that I’ll reach a critical mass in the future though.

I’m interested in anyone’s experience with seasoning of MH notes, LTVs and discount rates that note buyer’s generally require for mobiles.

Thanks, Glen

import · September 22, 2003, 6:49am

Re: Sell the MH, sell the note ques. - Posted by Tim (Atlanta)

Posted by Tim (Atlanta) on September 22, 2003 at 06:49:12:

Why worry about seasoning the notes? Why not offer a partial to your note buyer? They will be much more comfortable with the deal. You will get cash now that you need to continue to build your business. They get a good return. If you make payments on time, they might buy all the partials you can sell. Sounds like everyone is winning in that situation. You should eventually get to the point where you don’t need to sell the partials and your business will grow more rapidly then. Your cash flow will cover the new purchases and the new purchases will increase your cash flow. It won’t be a quick process, but with perseverance it will happen.

import · September 21, 2003, 9:20am

Re: Sell the MH, sell the note ques. - Posted by Tony-VA/NC

Posted by Tony-VA/NC on September 21, 2003 at 09:20:00:

Glen if this is your intended approach, then I highly recommend you learn all you can about the mobile home note business.

There is a book/course here by the name of “Tin Can Alley” written by David Butler. It contains all you need to know and more.

By knowing how the note market works, you can create notes to fit and thus sell quicker and at a better return for you.

Tony

import · October 1, 2003, 4:24pm

Re: Sell the MH, sell the note ques. - Posted by Dave Austin

Posted by Dave Austin on October 01, 2003 at 16:24:57:

I agree with Tim. Partials are an excellent way for both parties to be comfortable with buying/selling the note.

We buy mobile home notes and are almost always more comfortable buying a partial.

Dave Austin

import · September 22, 2003, 9:52am

Re: Sell the MH, sell the note ques. - Posted by Geln SoCal

Posted by Geln SoCal on September 22, 2003 at 09:52:22:

Thanks Tim–

I don’t have the answers at the moment. I am interested in the mechanics and standard procedures for discounting the notes to sellers for cash, so I’ll
find out. Partials would be fine. I still have a bit research to do.

Glen