All Forum Posts by: Scott Johnson

Make sure to include any restrictions like that in the lease. Always a good idea to consult your attorney prior to execution of a newly altered lease.

As a Home Buyer in Greenville, NC, my biggest accomplishment for 2021 was getting my broker license. Cash offers aren't for everyone and we found that we were losing deals because we didn't have that capability. Now we're primed and ready to move into 2022 full steam!

Awesome! Glad to hear it! Yea, I like to post "weed out" material in my posts. Like how much total they'll need for a deposit and first month's rent and the highest rent possible for that market (which can be negotiated of course). Also restrictions on the number of cars and actively towing cars that don't have tags or don't operate.

I've used SmartMove twice before and they're fantastic. Even able to add my property manager on to the account so she can see the screening. 

Now I just have my manager do all of the work using her systems, but I highly recommend SmartMove.

@Rob Gillespie, here are my thoughts based on your response:

• Property Value: $16,000
• Sale Price: $19,000
• Down Payment: $3,000
• PV: $16,000
• Rate: 10.0%
• Duration: 120 Periods

Season for 19 periods (PV: $14,399) and put note up for sale.

What are your thoughts on that? There are still 19 periods where the interest is higher than the principle if that matters. Like I said, still a N00b to notes :P

That makes TOOOOOOOTAL sense! Thanks so much for all of that information! It's golden! For whatever reason, I didn't even think about LTV and its implications. So a secure note would look more like this:

• Lot Value: $25,000
• PV: $16,250 (65% LTV)
• Rate: 8%
• All documents correct
• High borrower worthiness
• Seasoning (1 to 2 years maybe?)

I'm going to have to learn about RESPA and loan originator requirements here in North Carolina. I don't even know what those are yet!

How long do note buyers like loans to season prior to their buying them?

I'm also looking at a "Rent to own" play with this one, which may work out a bit better than seller financing. NORMALLY I buy properties at below market value, but in this case you are correct. I'm purchasing it AT market value.

"...sell for yields in the 20 to 30% apr range." is a bit foreign to me. So I'm putting the 30% into the interest spot on my financial calculator along with the other same origination terms and having it calculate the PV?

To clarify, this land has all hookups required for a mobile home, including septic. 

Thanks for that quick response! Much appreciated!

Hey, Everyone!

I found a mobile home lot in a good neighborhood that has everything ready for another mobile home to be moved on and hooked up. I'm going to purchase it cash ($16,000) and originate a loan at $25,000 at 8% for $209.11 per month (which is the cost of renting a lot in the area).

My goal is to hold this note, but I also want to keep my options open by making sure it's a quality note that I CAN sell if I deem it necessary. I'm planning to use this education for all of my future seller finance deals as well.

If you are a note buyer and know what you like, please post it below. If you know of any educational materials I can review or paid programs that you've found valuable, please let me know!

Two of my guiding questions are:

• What do you look for in a quality note?
• What percent of face value do you normally buy your note (if that's even the measure that you look for)

Thanks in advance!

Hey, Jennifer!

Don't worry too much about it. Just keep looking and learning. You'll find something that you can purchase!

We primarily wholesaled contracts this year, but we did end up purchasing a 4 Lot Mobile Home Park that has a permanent unit in place. We rented that permanent unit immediately and are advertising lots for rent. I slacked off on getting the lots rented before so I'm picking up the pace now to improve cash flow. 

@Jon Schwartz

It’s important to remember “trickle down economics.”

1) They start by taxing the wealthy

2) The money comes in

3) The wealthy find a way to avoid the tax

4) The government still needs that money

5) They pass it in to the poor and middle class

Just because they’re not raising property taxes now, doesn’t mean they won’t when they get used to, and stop receiving, their money.