First Deal ? On Note.
I have found my first deal, I will be wanting to sell the note once I finalize the deal, is there anything I need or should have included in the note to do so, since I will not be holding myself? What other things should I do to cover my self? :-?
The most important thing you can do is to set your terms to optimize the note's marketability.
If you are setting the rate at 5.5% on stick built property, you are not going to have a lot of interest, maybe in a partial purchase, or steep discount full buyout.
Could you explain the deal in more detail and what you are trying to do? Always have the note and deed of trust/mortgage drawn up by competent real estate attorneys to make sure you are complying with state laws.
Looking forward to hearing more. Best, Dave
The deal,
note will be for $16k on 36 months, at 12% interest.
what will an attorney charge for something like this?
I am looking to get cash for it all, I do not want to split or anything like that at first. The note I described is what I will be making for the buyer, I could adjust some things accoredingly to be able to sell the note.
Quote:
On 2005-01-04 14:07, rkoon wrote:
I am looking to get cash for it all, I do not want to split or anything like that at first. The note I described is what I will be making for the buyer, I could adjust some things accoredingly to be able to sell the note.
I'm curious little small talk. How much are you wanting cash for this 16k note at 12% for 36 months? What are the credit qualifications of the buyers? What is the LTV Retail and Wholesale? How much cash do the buyers have in it? How old of a unit are we looking at?
Is it on wheels or a foundation? rented lot or owned lot?
Can you answer those please?
Thanks,
Shawn(OH)
You may experience some disappointment in trying to sell a note on a MH in a MHP.
Few note buyers are interested in notes on any personal property, and the few who do buy them, generally buy only partial portion of the notes.
One MH note buyer I know does buy parts of MH notes, on MHs in MHPs, but only buys the front end, the first payments, and leaves the "rear end" of the note payments belonging to the seller.
He also wants the note buyer to "recourse" (guarantee) those payments, so the original note holder isn't going to be selling his note for high dollar, and isn't going to be able to walk away from the deal for some years.
It looks like the buyer is wanting to go 60 months. How does this affect the value of the note, Buyer will probably have 5% down,
on blocks not a solid foundation, lot rented, not owned, it is a 1977. what could I sell it cash for?
On these, I make every effort to either get good credit or higher down payment, as my experience has taught me the low down pmt, poor credit buyer isn't going to stay long and will feel no compunction against just walking whenever he/she gets ready.
I've been fairly succesful getting good credit co-signer where there's really weak credit.
What is your buyer's credit? Don't know?
Sorry, that won't wash. You need to get that report on prospective buyer so you do know.
I have asked the park owner to share their credit report with me when he pulls it. With their written permission of course. I most likely will be asking for a co-sign,
1977 on blocks on rented property.... I'd say, at least here in my area, I'd buy that MH for between $1500.00 and $3500.00 depending on condition condition condition. If I were to buy the note i would buy the first $4,000.00 with a yield of approx 25%. If I were to buy the entire note, which I wouldn't do without close to 12 months seasoning, I would buy @ approx 50- 65% of the principal balance. Now on the flip side, If you can afford to do so, I would hold that note and collect the entire thing. good solid passive income until they stop paying.
Good Luck,
Shawn(OH)
Not a bad idea, but i would like to sell it so I can go do another deal, until I get enough dough to just hold on to it for the whole term. Passive income is very nice!
:-D
Also, the homes in the park close to the same year and condition are selling for about 15-16k. Would you say still only pay $3500 for it? I really do not want to overpay.
How can an individual investor get a credit report on another person?. What do the credit bureaus require before they release that personal information? ( I know there is a fee, of course). Is the report complete? Or are the bureaus selective in what they do give out?
Thank you.
Quote:
On 2005-01-10 20:21, JohnMerchant wrote:
On these, I make every effort to either get good credit or higher down payment...
...You need to get that report on prospective buyer so you do know.
Taxivestor,
If you havent already, make a local mortgage broker your new friend. I did, and this guy will pull credit on anyone for free, in the hopes that when the can qualify they will get a loan through him. Just my opinion.
JD
PS: I grew up on the east side of Sioux Falls :^)