Manufactured Mobile Home Notes

Generally, do modular home (on permanent land) notes price lower than stick built home notes?

I’ve sold many 1st mortgages (totals and partials) to pension funds that were on mobile home and land packages in rural areas. The yields the buyers want are very close to those of 1st mortgages on single family stick built homes.

Regarding mobile home notes, the buyers want larger discounts and yields as the security is lower. If, however, you really know how to ‘create’ notes and resell rather than buy and resell, the resale of the notes will yield you plenty of profit.

You can do the same with mobile home and land packages…buy the home, buy the land, utilities, etc. All the components cost far less than what the package will yield as a sales price. Then sell the mortgage at a discount. You are in and out with all your money back plus a profit.

Hope this helps.

Rob