I have 2 manufactured homes on permanent foundations with land. I own them free and clear, I would like to sell with owner financing, then at closing sell my note for cash. Is this possible? Also, how much of a discount can i expect if i sell to buyer with credit score around 600, 8% interest, $80,000 full retail price? How would I find someone that buys paper? no note buyers. thanks
Did you find someone to buy your note? If not I may be able to assist.
I’ve done many deals like this since 1991 and they can work just fine. Many of the mortgage/ note buyers will have a certain ‘yield’ they require to satisfy their investor pool and they will have a minimum ‘dollar amount’ discount required, such as $5,000. The institutional resources to resell 1st mortgages with mobile home/land packages has greatly diminished since the mid 2006 R.E. & Mtg. Market Falls.
Much of what I’ve done has been targeted to private investor funding, typically in Pension Plans, Profit Sharing Plans, and IRA Plans to high income business owners and professionals…unlimited resources available if you know how to present your deal!
But I can’t help but wonder why you wouldn’t use these 2 ‘free and clear’ properties for a strategy that has generated high yields for me over the years. You can increase the pricing and values of your properties selling ‘owner financing’ and use private investor funds for short term to cash out, add a third similar unit, funding the same way, and record the 3 sales at the courthouse, even though they were funded privately. Then from the 4th deal on, you have 3 comps for new appraisals which can support the sale using FHA financing. They typically will finance 97%, even with low credit scores, as long as the buyers have paid their bills on time for 12 consecutive months. Then you can cash out on every deal all your profits.
After that, you can go back to the original 3 ‘privately funded’ deals and have FHA refinance those to pay off your investors higher interest loans and have that pool of money to do new deals.
Hope this helps.
Rob in Atlanta