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You’ll need more private lenders.
It will be difficult to get these refinanced unless they are in USDA areas. The alternative is to sell the note to someone’s IRA or Roth so you can get your money out and do the deal again and again. Or… sell part of the note to keep you going.
Is it possible to get a contract on them at $20k with a 60 day close, then market the property during that 60 days to a retail USDA buyer and you make the difference? At the most, you’d probably have $500 tied up per deal at any time.
That sounds like a good idea. So tie up the HUD home for 60 days for lets say 20k, then start marketing to an end buyer for 30-40k. The only problem i see is that USDA does not finance used doublewides, they either have to be brand new or a modular to be USDA qualified. So it would have to go FHA. How does bobby finance his land home purchases? I am assuming he just uses his own cash from his profits that he made off the mobile home park.
Bobby likes the cash flow and keeps most of his. Or, sometimes he sells with seller financing and has a private lender who buys the note AT CLOSING so he makes all his profit.
listen to some of the conference calls where I interviewed him about private lenders. he discusses how he found them,etc
Hey everyone,
In my market there are a ton of REO land home packages. The market is flooded with them. I can buy a 3/2 on 1/2 to 1 acre for 18k to 25k. I could then owner finance them for 60-70k. My goal would be to get the buyers to refinance and pay me off in the near future. The problem i am running into is getting long term money to purchase these. I can easily raise private money for 1-2 years, but anything longer than that it has been difficult. Plus, banks are really tightening down on financing doublewides on land. I just flipped a land home package selling with FHA, it was a nightmare to say the least.1. What do you suggest i do to get long term financing for these deals? If i use a private lender, what terms should i offer ?
2. Is anyone having success getting the buyers to refinance on a doublewide? Banks hate to finance them right now. I have one bank that will finance them with a 680 credit score and a 80% LTV for my end buyer after a year of making payments. Any suggestions to help get end buyer to refinance and pay me off so i can rinse and repeat?
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