Greetings, In the Spring a “note finders” fancy turns to thoughts of – how much they would love to have a bountiful supply of owners with notes to contact. As I have presented on a regular basis at note seminars and workshops: If you don’t sow the seeds by target marketing, nothing will blossom or bloom. Your ship simply won’t come in if you don’t first send it out.
This month our Newsletter features David Butler’s article on Mobile Home Notes. Trust me, he is the most knowledgeable person I know on how to find, evaluate, negotiate and build wealth with Mobile Home Notes. We will be updating our website regularly www.sellerloans.com with details on a Mobile Home Workshop to be held in July presented by David . There are literally thousands of mobile home notes in the private secondary market. Until we met David, we shied away from investing in them simply because we did not know how to evaluate the note or complete the “due diligence”. There’s not a lot of competition in this market, and there’s plenty of notes. Learning about how to tap into this market will open a whole new world of opportunity for you.
For those interested in boosting your business with “Land Trusts” you might want to check out our web site for Equity Holding Corporation found at www.equityholding.org and click Free Articles. Lots of information and ideas there on how to acquire real estate using no money of your own. The events calendar on the web site will let you know when and where free land trust seminars will be held. May everything “come up Roses” for you this Spring. Roberta and Tom
“Powering Profits With Private Mobile Home Paper” By David Butler, Hotspur Consulting
As professional investors, all of us dream of the opportunity to buy good investments – earning great yields… and with satisfactory risk/reward ratios!!!
But most of us aren’t aware that for the past 10 years, a relatively small group of prescient private investors (including yours truly) scattered around the U.S. are happily digesting well-secured 13% to 40% average yields. Some of the more knowledgeable of these investors are occasionally doing even better… earning returns of as much as 70%, or more, on their investments!
How are these clever folks achieving this remarkable ROI? By carefully and intelligently investing in privately held “seller carryback purchase money notes”! Does the idea of having a crack at 43,000 or more notes each year, notes that are earning investors anywhere from 13% to 70% and higher (and that hardly anyone else is looking for) appeal to you?!? If so, read on!
The Hidden Market
You might already be aware of privately held seller-carryback real estate notes. What you probably don’t know, is that there is a very lucrative little niche in the private paper industry where you can purchase a heaping helping of all the good notes you can handle, without fighting for your place in the bread line. That niche is mobile home paper!
More specifically, these are private seller-financed notes that are secured by used manufactured homes (HUD-Code) located in mobile home parks (or “manufactured home communities” as the MH industry likes to call them these days).
The mobile home note arena is a marketplace that is vastly overlooked – as well as being greatly misperceived by the majority of note investors. But if you decide to fully investigate this remarkable wellspring of peerless profits – you’ll come to learn the reality is that most note buyers, simply don’t understand the overwhelming advantages of careful investment in private “seller-created” mobile home notes! And most investors haven’t even heard of them!
“But it’s not real estate!”, you say. And… you’d be right! These are not real estate notes either, as the manufactured homes serving as collateral are situated on leased spaces in MH parks – and thus they remain personal property (not permanently affixed to and owned together with land).
From a practical standpoint however, MH notes are negotiable cash flow contracts secured by residences, so they do have a very common bond with both real estate, and real estate paper.
Like real estate notes, the MH collateral securing the notes still exhibits several of the more important characteristics of residential real property. Most manufactured homes situated in parks are principal year-round, single-family dwellings. They have long remaining physical life spans similar to site built structures. They have relatively expensive foundational support, and are also relatively expensive to move out of a park location.
As a result, more often than not, these homes are almost never moved from an original delivery site.
SCHEDULE OF FEES AND SERVICES– If you have ever shopped for the servicing, you’ll take notice that we give you the best service for your buck! www.sellerloans.com/list_services.html
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