Notes on (trailer park) mobile homes?

[Bryan Hartlen]

This is an academic question for me but it was prompted by a discussion with another investor. That investor was trying to value a portfolio of 30 notes on mobile homes. Trailers only - land belongs to the park. Assume they are performing. All notes are seller financed by the seller (no underwriting), low value ($10 - 20k UPB), $200 - 300/mo P&I, 5 - 20 years left.

Is there a secondary market for this kind of paper? Have you met other investors that buy in this space?

As a buyer of ‘traditional' notes, what kind of discount from UPB (or market value) would you expect this kind of note to require in a secondary market?