Iterest Rates For Owner Financing MHs
I've read several articles/excepts from Lonnie Scruggs and I've ordered his books. I was just curious why he was such a stickler for 12.75%? In one article that I read, he explaind the different if you could get 15% instead of 12% return. So I was just curious why he stayed at 12.75%. Maybe he explains it in his book. I know I saw someone on here that did 14.5% so I'm wondering what the rationale was for these rates. Lonnie kept mentioning "industry standard", but I would guess you could tell them anything and they'd believe it was the industry standard.
I was actually thinking about doing a 2 rate deal-if their down payment is less than 10% (Or some other number like what I have in it 
)do something like 14.5% and if it's higher do the 12.75%.
Any thoughts would be appreciated.
The simple answer is you get what you can get, and you offer what you want to offer.
Go check out some rates for the type of properties you're dealing with and see what they are. You can usually get 2-3 % over these rates because you are offering owner financing, usually with reduced requirements.
Roger
Lonnie started using that rate and because there are so few people dealing that way, he jokinly referred to 12.75% as "Industry Standard". As Roger said, as long as you are under your state usury rate, and as long as the customer is happy, you can charge whatever you want. I am selling one now, and since my local lender charges 14% to folks w/ good credit, I should have no problem getting 24.95 or 21.99 depending on how I feel at delivery.
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