MH Notes How Does It Work?
Can someone explain how purchasing mobile home notes work. Can you purchase a note that is still held by a finance company or does it have to be a note held by an individual? May sound like a silly question but I really don't understand the concept.
It is simply a form of investing for some people. They usually have a required yield. After looking over the note in question, they will discount the note to receive that yield. The three biggest factors in getting the most out of your note is: buyers beacon score, size of down payment and interest rate. I have not personally seen a note purchased from a finance company. They are purchased from individuals who carried back the financing.
John
I agree with John, and there's little to misunderstand.
I've seen a number of MHs financed by individuals, at varying rates of interest, usually beginning @ 12%, but sometimes a lot higher.
I'd be leery of any finance co. held notes, as MH dealers, in my opinion, sell for way too high, then try to find some sucker to buy the buyer's note...which, again in my opinion, is going to default somewhere down the line...so who'd want it?
I like the financing of MHs better than buying them myself, as I'm really allergic to paying MHP rent while I'm looking for a buyer.
JohnMerchant,
Myself and a Partner purchase MH's in the Southern part of the States, such as GA, Oklahoma, Arkansas, TX, AL, NC and SC and FL.
Anyway I said that to say this, I have gotten calls from buyers IN WA and OR I am wondering for those that might be worth doing something with if we might could work some deals together.
Just a thought in passing, OH I can get the Homes at rock bottom prices perhaps you can too, but I thought I might mention it in passing.
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