Virtual trailer park/ Lonnie deal. please comment. - Posted by charles(del)
Posted by charles(del) on January 25, 1999 at 24:08:52:
I am an experienced investor looking to do Lonnie type deal.
Need creative approach.
Lady owns 4 singlewides on 4 fee simple lots not in park. Plus she owns 2 more leased lots with a tenant owned trailer onsite. All right next to each other.
Working to negotiate discounted price for the whole package. Her 4 singlewides rent for $200 each. Her six lots rent for $200 each. Leases are only 60 days but most renters are stable I think. Total income is $2000 per month. Expenses such as taxes and insurance should be minimal.
Assume selling price of $10,000 per mobile home and $10,000 per lot for a total of $100,000.
She will owner finance with 25% down and 5 year balloon. Amortization and interest rate to be negotiated.
Would like to sell/finance 4 mobiles to eliminate landlord headaches and hold 6 lots for future income.
Obviously, cash flow is good but 5 year balloon is an issue because conventional refinancing will be difficult.
I have a one year commercial line of credit for down payment cash.
went to Lonnie’s seminar so I know the basics. I am looking more for comments on how to take advantage of owner financing available and flexibility in multi-property deal. In other words, possibly selling discounted notes on the 4 mobiles for cash in a way that leaves me with 6 lots for a very discounted price.
I have done this with raw land and land development but not with MH’s so far.