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Updated almost 8 years ago,

User Stats

133
Posts
35
Votes
Chad C.
  • Denham Springs, LA
35
Votes |
133
Posts

Anyone buy, sell and hold the note on MH like this?

Chad C.
  • Denham Springs, LA
Posted

I put out a test add and had many inquiries. Ideally I could pick a client and buy a MH for them, and help them place it on a lot. It would be nice if they found a home of there liking, and I negotiated the price from the seller. This would eliminate any holding risk I had, but I'm just not so sure it is feasible. It's much more of a juggling act for everything to align. It would be much more cut and dry if I had a home on a lot, but really limits my market. Anyone have any insight to either of these methods?

Another thing I noticed about these deals is that while you make good returns on marking up trailers 80% it takes the length of the note to actualize it. 10k MH sold at 18k is a 80% return! over 4 years is 16%, With 12% interest returns increase to 21%  not bad for not being a landlord, and these are the best unlevereged returns I am seeing

Selling at a 80% markup:

10k trailer for 18 is possible but hard to find those cheap deals. 

15k to 27k is more of a typical buying price but getting harder to sell

20 to 36 can be bought all day, but don't think many will buy at that price also term length has to be extended for affordablity, decreasing returns.

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