Holding A Contract?
I know someone who is trying to get into a mobile home, and they only have 20k for a down payment and they are wondering if I would carry the contract on a second deed of trust. Which would be do in 5 years at 8% interest. And let them borrow 12k, so that they can get into the property. I am wondering if 8% interest is good or is it usually higher when you hold a contract? I have not delt with this before. Thanks for any info...
My opinion? 8% interest on a 2nd mortgage is not worth pursuing.
And on a MH, which loses value as the years go on?
I would pass on this deal at 15%!
thanks for the replies. It is a mobile home but it is on 6 acres in a good area. I am just not sure if it is up to me to set the interest rate or if there is some kind of national average of what the rate should be.
Thanks I really appreciate it. I will just try to skim it in the bookstore and see what I think.