Should I lend money on this mobile home and carry the note?

[Russell Fugitt]

I have the opportunity (and cash) to lend 33K on a mobile home that is worth 37K.  I would have a promissory note recorded to guarantee the payments from the homeowner who will live in the home.

The deal would be for 96 months at 6% interest.  

My concerns are the risk of default and how hard it is to take back the mobile home.  The home is in a park that charges 400/month lot rent.  I don't want to be paying lot rent while trying to get the home back from someone who stopped paying.  

I am also wondering if the Dodd-Frank act applies here.  This is Arizona if that makes a difference

I am trying to search the site, but haven't found a real clear answer yet.  If there is a real clear answer in another thread, please kindly point me in right direction.

Thanks,

Russell

[Shiloh Lundahl]

@Russell Fugitt I don’t think that the Dodd-Frank act would apply much here unless you were creating a mortgage but I’m not an attorney so I’m not sure. You’ll probably want to ask an attorney. I agree with what @Account Closed said that the interest seems pretty low and you may not own the land so if things don’t go as planned you may be paying a lot  for lot fees.

You may want to study up on mobile home investing or manufactured home investing before doing this deal if this is the way you want to go.