Private Money Terms for Mobile Home Investing?

[Taylor Tully]

Hi guys, I wanted to see if I could get some input. I’ve got a few friends who may be willing to fund some mobile home deals I am looking at and I’m trying to see what some good repayment terms would be to use them as private money lenders? I am looking at mobile homes in parks I could buy for around $5k and sell for around $20k with owner financing for 5-10 years. Total cash flow per unit after lot rent would be $250-$450 per month plus maybe $1000-$3000 down payment that could be split. What could be some good repayment terms I could offer them that would be mutually beneficial? Thanks for the input!

[Rachel H.]

@Taylor Tully It will depend on each private lender. Everyone has a benchmark on what they want to get. The best thing to do is ask. But have a figure in mind. Know the market. I knew one mobile home investor who used the same private lender for over 40 deals. He made a small amount on the spread which he reinvested back into the business. The lender was paid 10% on his money. The investor got to keep the move-in fee when residents move in. Since the investor made his payments on his time on every deal, the private money lender kept funding his deals. A win-win situation for both. Hope this helps!