and of course since these are new in service your really won't know what the numbers are until you own it 3 to 5 years and can do an income average on them.. one year can be stellar .. one bad turn over and it could be a bummer .. one reason I always say if you going into this you need to find a way to get to 5 to 10 doors so you can average them all out then know in your mind your in for the long haul.. this keeps neighborhoods stable and gives you a fair shot at long term cash flow and you can see what your averaging.

And I love passive with double digit returns.If your notes were a stellar deal at 11-12% Experienced passive investors would be beating down your door to get them.The notes you are creating should NOT be targeted toward newbies.

I often get squatters moving into my stellar properties.

So what I would suggest is that at your current rate you do a FSBO, at $165k, require 10% down which is $16,500/$20,000, find a family with less than stellar credit that still needs a place to live, just got roughed up by the economy, attach a "premium" for giving them the loan ($3,500) which you could even throw into the mortgage payment over time, and attach a slight interest rate boost for the added "risk" of taking them on.

If someone works 80 hours a week, has a growing family, has $1M in the bank, a high-salary job, no debt, stellar credit, doesn't need cash flow and their goal is to generate 8% returns on their cash for the next 20 years, would you make the same business recommendation to that as you would to someone who has no cash, no credit, no job and poor communication skills?  

If we measure effective lending guidelines by the default ratio and these guys are less than 5%, I would hope most understand that is doing stellar.  

He picked the one I liked and he liked.And that PM is stellar 14 years later its still going strong and he just looks at reports and comes once a year for maybe an hour..  

Our first meeting wasn't terrible but it definitely wasn't stellar with the amount of pushback.As for timelines we planned worst case scenario of 45 days for a refusal letter but we're going on 8 weeks right now which is outrageous. 

So, having a competent and effective team in place is key, such as a great insurance agent and a stellar attorney.

Second, mobile home tenants aren't notorious for being stellar tenants.