How to structure a mobile home investment deal

[Sandy Uhlmann]

I currently own two mobile homes in my SDIRA that are rented to tenant buyers. I have an opportunity to purchase a couple of mobile homes for a fairly good price. Rather than hassle with buying the homes, fixing the homes and renting out the homes I am considering purchasing the homes then financing them to another investor for 12% interest only with the principal due within 5 years. Lending money seems like a good way to get a decent yield without all the hassles associated with the ownership of the mobile home. If I finance this deal, what is the best way to structure the deal so the loan is secured? Do I have to purchase the mobile home first then finance to the other investor in order to have a secured loan or can I just lend money at the rate discussed and put a lien on the home so I can be sure that I get paid. Note: I plan to use my Self Directed IRA funds for these purchases in case it makes a difference in the structure of the deal. Also, I do know this end investor well and he is very familiar with mobile homes and mobile home repair and has lots of experience with tenants. I think this could be beneficial for the both of us.