I was about to put in an order for several homes through 21st Mortgage.
We all know one of the big downsides of the CASH Program being that I am actually personally liable if the park flooded or was destroyed in a tornado.
So what if i avoided this by refinancing a Non Recourse loan on the park and buying all of these homes and acting as “the bank”, instead? (i am currently in the financing process as we speak and i likely have additional capital i can pull out).
The only downsides is that
I would have to work this creatively as a “lease option” or with a “credit” system?
Its an extra line item to keep track of accounting.
Acting as the bank requires extra work of underwriting process of the buyer and analyzing credit risk, which i would have to figure out.
Another upside is that frankly, I have done several purchases through 21st and they have been a complete pain to work with and have chased off a couple buyers that i have had.
As far as I can tell, 21st makes all of the profit and I take all of the Risk. That violates Sam Zell’s rules of business. If I’m taking the risk, I want to make the profits, and I want them to be as high as I can make them. That is not the 21st business plan.
You could get the homes from Legacy housing, they have a great program for park owners. I work for Legacy let me know if you have any questions.
Mobile Home Loan Options: 6 Home minimum per contract (unless otherwise approved).
All homes on one contract must be delivered to the same park location (unless otherwise approved).
2 standard financing options listed below:
10% Down Payment, $2,000/unit due with order.
12-year amortization. 2 years fixed interest @ 7.9%, 10 years variable interest @ prime + 3.8%
20% Down Payment, $2,000/unit due with order.
12-year amortization. 2 years fixed interest @ 6.9%, 10 years variable interest @ prime + 3.8%