Wholesaling Mobile Homes - Seller Carryback Deals?

[Jerry Zhang]

I'm wondering if there is a market or demand for wholesaling seller carryback deals for mobile home parks. With seller carry backs you can get the seller to take a 2nd mortgage and carry most if not the entire down payment. I was wondering if it's possible to wholesale seller carryback deals to buyers. The benefit to the seller is that they get 0% down deals with lower than average interest rates for commercial deals (Seller carrying 25-50% note at negotiated 0% interest) and have theoretically infinite returns with 0% down. The biggest challenge I can see for this is that I hear it's a pain in the *** for the seller to go through a local community bank and confirm their income for their approval for a mortgage, and there are local/community banks that will approve 95-100% LTV loans based on how profitable the deal is. These deals are much easier to get locked down and offer more options for disposition strategy, but would rely on a qualified buyer pool who would be earning more than the six figures through w2 or a business.

Benefits:

- No Down payment deals

- Seller carries 25-50% of purchase price

- Lower interest rate than banks. (if seller carries 50% note at 0% interest, bank interest rate is 6%, combined interest rate is 3%)

- Infinite returns with 0% money down

Cons:

- Not a very easy deal to complete as seller financing ones

- Have to find qualified buyers with good w2 or business income already

- Seller would have to work with community bank to get deals done

Any thoughts on the viability of this strategy for wholesaling mobile home parks? This way I can present 3 offers to sellers with cash, 10% down seller financing, and the seller carryback (50-75% down). Unless most deals with seller financing already carry the down payment by default. Doing a deal like this makes sense to myself as an investor if I were to do it with 0% of my own money down and if it was structured and laid out for me. I think the biggest challenge for this strategy to work is to build a qualified buyers list that is making over six figures that are likely to qualify for community bank mortgages with their income. Who wouldn't want to have theoretically infinite returns with 0% down payment, low interest rates, and have the deal structured for them in real estate as long as they earn 100k+ a year for most deals in the 250k-1M dollar range?