Wanting to sell note & need advice

[Mark Jay]

Hi. We sold a property in Lufkin, TX owner finance last year. It is a 1068 sq ft single wide mobile home (fixer upper) on a 8000 sq ft lot. Sold it for $80k. Got $4,500 down and buyers are paying 10% interest on 25 year loan, so paying $686 per month + $110 in escrow for property taxes & insurance. First payment was August 1,2025. Never missed a payment and never incurred any late fees, so that's 7 months of payment history. We are now wanting to sell the note in order to recoup some of the cash and invest in other opportunities. We have a few questions...

***First of all, anyone interested in buying the note? :) We are hoping for $65k.***

1) How to market the note? We wanted to list it on Paperstac; any other recommendations?

2) How much personal info do we give? For example, I understand a prospective buyer would want the address, but we are hesitant to put that out public in a listing, as we don't want the home owner to have people trying to go see the house.

3) How and when do we talk to the homeowner about the fact we may be selling the note? We don't want them to be alarmed. We have a good relationship with them (we self-service the loan), and they deposit the money into our bank account each month. We are concerned they might feel confused if we try to explain that we are selling the note. Obviously, the terms will not change, but who they pay each month will. 

Any other insights or thoughts are welcome! thank you in advance! 

[Don Konipol]

Quote from @Mark Jay:

Quote from @Chris Seveney:

1. My recommendation is to list it on Paperstac 2. I would provide full underwriting file 3. You don’t need to say anything to current borrower until you sell- but selling a note is not uncommon 4. Is the trailer fixed meaning is it real property or personal property? That will make a huge difference in pricing along with value of the land

Thanks for the info! The home is real property. But like I said, it is a fixer upper. When we sold it, it did have a relatively new and working central ac and heat etc but I know it needed a lot of updates and drywall repair etc. 

What @Chris Seveney was asking was if the mobile home is “affixed” to the property as in having a permanent foundation which would make it real property; if the mobile home is like most and not permanently attached to a foundation that the mobile home,e itself is NOT real property, it is personal property.  The land (if you own it which I assume you do) is, of course real property. 

Part of the answer as to what the note is worth to a buyer will be the answer to above.  Another part is land value - the higher the real estate component of value vs the personal property component the better. 

Now for the bad news - you provided a 95% LTV loan secured by a mobile home, so that's a huge negative (increases risk). You don't have 2 years of payment history, another negative. The loan is 25 years, third big negative.

Even in our relatively low interest rate environment, an investor who knows what their doing will want no less than an 18% annualized return, bringing your note sale price to about $45,000.

IMO, to sell for more you’d need to find a relatively new, unknowledgable buyer who is mesmerized by return without consideration of risk. 

I’d like to hear other opinions of value, that either agree or are different than mine.  Remember, this is just MY OPINION, I could be wrong