MH Note 40k 12% 5 year

[Jeff S.]

Have an opportunity to buy a secured note fully amortizing over 5 yrs.

The property is a 1992 manufactured home on its own 1 acre property with a garage in Central Oregon.

Tax values: Land $37,410; improvement $59,760.

Estimated value: $75,000

Short sale price: $59, 598

Loan asked: $40,000, 12%, amortized over 5 yrs.

Down pymt: cash $19,598

What do you think?

[Loc R.]

Jeff,

Ask yourself the question: "Would I lend without an appraisal?"

Sounds like you're eager to jump into a deal. Let the RE agent use his 12% no-appraisal money - you surely don't want to lend $40k on a property that ends up being worth $20k, do you?