Are Lonne Deals Dead - SAFE Act?

[Anthony Palmiotto]

Obviously there are plenty of threads discussing the SAFE Act and how they impact Lonnie Deals. I understand that these laws may differ from state to state but my question is a simple one.

I'll make an overly simple example:

There's a mobile home worth $6,000 that I can buy for $2,500.

I buy it and it needs no rehab so I look to sell it with owner financing for $6,000 at 12% interest.

This is where the SAFE Act comes into play but what if I just sold the mobile home interest free for a higher amount?

Let's say instead I charged $9,000 which I would collect over 3 years. (I can do this because the buy is more worried about the monthly payment than the total price.)

To me that sounds more like installment payments for a piece of personal property than a mortgage...

Am I missing something? Has anyone tried that? Is that legal under the SAFE Act?

[Carrie Collyer]

Originally posted by Bill Gulley:

And how many "investors" think they are helping people by financing $2,500 mobile homes for $6,000?

BTW, if you can buy something at some price and the item was basically exposed to the market, advertsied for sale, the value is what it sold for, not 2.5 times more. Just because you can get some nieve simple minded person to sign an agreement doesn't mean it's worth more.

Bill- I am one of those "investors". It is ironic the above numbers were given. 10 years back, I bought a mobile home from an owner who tried to sell it for $5000 cash but was unsuccessful. I offered $2500 cash and sold it for $6000 on a note. My buyer put $1000 down and ended up making $800 payments since this was what she had been paying in rent. She paid it off quickly and owned her home. Is she the naive simple minded person you are speaking of? Am I the unscrupulous investor who took advantage of my seller and buyer? To me it was win-win-win. The seller couldn't find an end user with that much cash-the buyer could not pay cash and couldn't get financing. I took a risk and stuck my neck out. That's why a those in business deserves a profit, isn't it? Some deals I made money on Some I lost. I don't hear complaints when wholesalers did nothing more than inform another of a deal. Just my thoughts. No hard feelings. I enjoy a lively debate.