All Forum Posts by: Marc Faulkner

Read Everything that you can get your hands on with out paying to get involved in high priced seminars and sales pitches about how easy the note business is. Noteworthy has a lot of great information on the subject of how to broker notes and other cash flows and even offers a free class for new note brokers.
The note business is all about people and problem solving. If you like these and are a good negotiator you can do well. If you don't have a good understanding of mortgages, seller financed real estate transactions and the time value of money, you can start by reading up on these subjects on the net and in your local library for free!

I appreciate you making me aware of this note but, we couldn't touch this one. Our min credit requirement is 575 and min LTV is 85% . Pricing is based on credit and equity. This note looks like trouble waiting to happen.

Yes please elaborate Michael. I am not sure what you are saying when you say, " I wouldn't touch his deals." I seriously doubt you had a bad experience with Lonnie Scruggs. He is a great guy!
I assume you must have had bad luck with a mobile home deal that you put together when you say this. What happened?

The property does not have to be paid off to use owner financing. Just use a wraparond note and make sure that you get a big enough down payment that the buyer is invested into the property. The "out" could be a balloon payment due in 5 yrs. or so or the note holder could always sell the note for a lump sum of cash!

I would try to get at least 10% down and carry back 2 mortgages, one first position mortgage note at 80% and a 2nd. position note for 10%. This will make your first position note more valuable in the secondary market because the LTV will be better.

In Michigan we use a land contract and promissory note. Occasionally you will see folks write a mortgage and promissory note but, most seller financed our done on land contract here.
I like to do what Mike has done and buy homes using cash from my Self Directied IRA and then sell them using seller financing and keep the profits tax free!
I also buy and sell resl estate notes in the secondary mortgage market Nationwide. I have been trading in notes since 1999.

Jeff is right you don;t want to go over "state's usury law" when seller financing your properties. In creating a secure and saleable real estate note you want to make sure you are charging at least slightly over market rates with out over charging. The norm for land contracts is 10%. Mortgage notes with less than normal rates will be discounted more if the note is sold.

We are always looking for 3 br. mobile homes in West Michigan. We prefer 3 br. single wides that are 1990 or newer and set-up in parks or can be moved from current locations. e-mail me pictures, location, home info, contact info and price today.

Yes I make every effort to befriend the park managers that "get it". I don't do any financing in parks where I don't see eye to eye with the manager or park owner.

Here is an example of a perfect Lonnie Deal!
A guy calls and says he want to sell his house. I ask how much and he says $600 for a 1990 3 br. single wide set up in a park. He has the title but it is in his grandma's name.
I go see the home and offer him $500 minus the taxes and give hime a $50 deposit and place my sign in the window. A few days go by and we have several calls on our sign and set up a showing with all of the potential buyers getting there at the same time. We do the walk through and narrow down the buyers to the ones that have the most cash down and can demonstrate the ability to pay. We sell the home for $7,999 with $1,000 down and payments of $184 pr. month for 48 months.
2 years go by with steady payments and then the buyers decide they need a bigger home.
I tell them I will let them out of the contract if they continue to pay the lot rent while the home is on the market. 1 month goes by and we find another buyer and this time the price is $8,979 and we get $1,500 down and cary back a 60 month note with a 10.99% rate and a monthly payment of $166.33 for 60 months!
This home has been a gift that keps on giving and I have never had a dime of our own money into this deal:)