Interest charges on Seller Financed Used Mobiles


#1

Hello all,

I am brand new here and although I have been in the RE investment business for about 12 yrs. on a part time basis, I am brand new to the MH investment world. I am retiring from a retail/ service business I have been owner and operator of for the last 28 yrs. and am looking to do something different. Until my business sells and with saving I put aside I decided to start with some Lonnie deals till I get the MHP home study course offered and learn more about the business. I am confused about the finance rates to charge. I looked up the State Usury guidelines for Pa. and S.C. , which are the 2 states I would be doing business in. S.C. laws are vague and Pa. says 6% up to 50k for real estate… I know I must be missing something! Lonnie’s “Deals on Wheels” book which I purchased years ago gives examples of 12.75%. This book was written long before I bought my copy.

I am eager to get started and have taken the time to speak to some park managers in my area. One, after explaining what I am interested in doing, told me that industry standards right now in this market is 16-18% for financing used mobile homes in this market.

I really would appreciate some in site as to what the range and guidelines are for seller financed deals on used single wide mobile homes in this current market.

Thanks in advance

Tim