Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
Jimmy Napier did this AND gave a large equity “gift” to the borrowers.
Remember, this is back 40 plus years ago, in rural Florida, so adjust prices in your mind.
Jimmy would buy a perfectly livable mobile home at auction for say $5,000. He’d pay about $750 to move it to a lot he bought at auction for $500. Spend another $250 on general “make ready.
He’s sell the whole kit and kaboodle for $10,000 with $500 down - the buyers were getting a home AND the real estate - and carry the balance at 30% interest. Payments were a very affordable $263 monthly.
If the buyer/borrower made payments (relatively) on time, Jimmy would appear on their front steps 6 years into the loan and present them with the note marked “paid in full”, giving them ownership 4 years before the note is paid off. This still worked out to a 45% annual return on invested capital, with lots of happy crying, hugs and kisses from the property owners.
Don, love this. The part that gets me is the paid-in-full gift at year six. It's a perfect example that real estate doesn't have to be zero-sum. Jimmy won, the buyer won, and folks were crying happy tears on the front porch. Here in rural North Alabama, a lot of good people just need somebody to carry the note and give them a shot. Thanks for sharing the old-school stuff.
