YIKES! 15% +7pts! That's HARD $$$ Options? - Posted by Michael

Posted by Jack-NY on June 14, 2000 at 21:34:32:

If I were you I would ditch the NADA and the Blue book real quick. These “so called retail values” are way out of wack.

This is why mobile home lenders have a lot of bank repo’s, specially used mobile homes. The lenders would rather sit behind their desk and pull out the NADA book, and say “Yep this 1978 home is worth $21,000” The lender gets the home back from the deadbeats, only to find out realisticly the home on the open market is only worth maybe $10,000.

Example: I looked at a 1978 2bedroom/1bath nice shape. The owner has a $6500 lien on the home, he paid $14,000 for the home. The owner stated the bank advised him the current BOOK VALUE was $21,000, imagine that! We can buy new homes for invoice at $16,000.

Suggestion: Locate a good creditworthy buyer, with a least 10% downpayment, structure a good note, and then sell your note to one of the mobile home note buyers.

With a good buyer you may not need any seasoning of the note, with a small discount, take the money and re-invest.

Hope this helps…

“The bottom line is to STUDY and know your local market like the back of your hand”


YIKES! 15% +7pts! That’s HARD $$$ Options? - Posted by Michael

Posted by Michael on June 14, 2000 at 16:04:21:

We have a couple of MH lined up for 75% of NADA, which is OK or about 75% of “Retail” or “real” market value in these parts of the country. Thought about using our cash to buy and quickly flipping to a pre-qualified buyer through Conseco. Got a quote today of 15% + 7pts! YIKES! What did I expect? Less than that! Anybody got a better way to do these babies and still make some $$$ ? Always appreciate this board and the info shared.