Starting in MH Paper-- Help!! (longish) - Posted by laziz-austin-tx

import · June 18, 2000, 10:59pm

Posted by Bill K. - FL on June 19, 2000 at 06:40:08:

When talking about mh notes you have to make the distinction between notes secured by land and home and home only. For every “home only” note buyer there may be 100 for land and home. The credit req. are usually higher and ltv/itv requirements are usually lower for home only. And the investor yields are higher. If anyone on this site is interested I have a portfolio of apprx 75 notes with high note rates (over 17%), seasoned, terms to 60 months, avg note current bal. of $7K-8K, low ltvs (70-75%) for mh home only.
Getting back to your ques. You can do simultaneous closings - either yourself or as a broker. As far as finding mh paper, check with your state gov’t. In FL the state will do a mobile home lienholder title search (not free) for you for home only. I can find paper on homes with land thru county property records. As far as your last ques. - I don’t think an old credit score is going to do you much good. Seasoning, with a good record of payments (copies of checks rec., deposits made)is better. I am not a lender but have set up an acct. to pull credit (which I charge for) very easily. Check with diff. companies in your area. Tell them your business and you should have no problem. Keep posting on this site for advice and encouragement. Good luck.

import · June 18, 2000, 10:59pm

Posted by laziz-austin-tx on June 18, 2000 at 22:59:06:

First of all, thanks to everybody associated with CREonline.com, and everyone who posts here. I’ve been following the sight off-and-on for 2 years now, and its the best no-nonsense source of information out there. I’ve read Terry’s course, and it’s great.

Background: I want to focus on MH paper because: 1. The yields are near ‘robber-baron’ territory if done well.
2. Everybody and their dog advertises for SFH notes in my local paper. The market seems crowded.
3. My background (B.A.) is in Economics, and playing with yield curves gets me -umm, err- excited.

I would like to buy notes within big-buyer guidelines (eg nationalcapitolcorp.com), put them into a portfolio, season them, and then sell them to the big guys.

Question one: Is this feasible, assuming I can find the notes?

Holding them til term, and administering them, sounds like a big headache. Plus, flipping them should get my corporate structure out from under a PHC (personal holding company) designation (min. %36.9 corp income tax) because of the destinction between active and passive income.

Question two: What is the best corporate structure for pursuing this activity? (Don’t worry, I’ll consult my CPA too)

It doesn’t seem like it should take too much capital to get started. Nonetheless, I would like to move on to flipping portfolios of notes as quickly as possible, and have allocated $30k to begin.

Question three: Does anyone here have experience doing simultaneous closings on MH note portfolios? I like the idea of using my capital as “backup” after completing my first few transactions with my own money.

Question four: What is the number-one most effective way to find MH paper with KNOWN credit scoring on the payor? I’d like to not have to jump through hoops to qualify as a lender so I can run credit scores…

Any ideas, advice, admonishment or encouragement appreciated.

Thanks,

laziz-austin-tx