Packaging Lonnie Deals?

Question

Hey All,

I live in an area that seems to have numerous Lonnie Deal opportunities.  Without cash, are there any creative ways to package together 10 or so Lonnie notes while I manage them?

Thanks!

Leslie A. · Answer

It would of course depend on the specifics of the note and the note buyer's criteria.  Each note buyer would have different standards and amounts they were willing to pay.

But on a typical Lonnie Deal with a payer with poor credit and low down payment and an older mobile home, my discount would be about that high, if I was buying the note.

Dory Peters · Answer

I didn't know that the discounts on mobile home notes were that much.

Leslie A. · Answer

Champak,

Lonnie deals are mobile homes.  Note discounts are high on mobile homes.  Risky.

Champak Shah · Answer

Hey --Explain What is Lonnie Deals ?

No  -- discounts don't run 40-50% --all the time--depends on Credit of payor, seasoning and rate on note --mostly look at 18% - 20% yield--
can sell  partials to raise some cash  ---

What do you mean managed by you ?

Are these  single family homes ? Rented out or owner occupied ?

Leslie A. · Answer

Hi Gabriel,
I'm not sure I understand your question.   Can you clarify?
Your Lonnie notes can be sold for cash, though the number of buyers is limited and discounts run around 40-50%.