Mobile Home Note

[Brady Dawkins]

I did a "Lonnie Deal" with a couple about two years ago on a mobile home. They were great buyers: they moved in, fixed the place up and paid the note off early. Now they are looking to upgrade homes. They found another MH they want to move into and already negotiated a price with the seller. They approached me about financing the home for them to see if I would be interested. My questions for the forum are:

A) Is a private money note loan such as this a good deal on a mobile home?

B) If it can be a good deal, what sort of return should I look for? 12% ROI is sort of standard for SFH rental but is that good for a MH?

C) Anything I should look out for legally? I know there's a lot of discussion about Dodd-Frank these days and I know how to navigate that fairly well. I'm interested in securing the lien, any repossession issues I may face, etc.

Thanks for the input.

[Darren Eady]

Private money loans do not fall under the Dodd-Frank rule, especially if you lend your money on a few deals a year and never reach 1m.  12% is reasonable, but it's your money and your risk, so maybe you'll up the points for the loan?  Good luck!