Line of Credit for Bulk Home Buying - better than Legacy or CASH?

I am looking to fill 40 lots in my parks with new 3/2 singlewides. As an NMLS licensed mortgage company, I plan to seller finance these homes to the underlying consumer. The options for buying homes in bulk are Legacy, CASH, or bank loan. Those of you shopping the options probably know the Legacy and CASH programs, so I will not attempt to list out the details of those programs. I am leaning toward doing a bank loan at 1 month LIBOR + 250 bps (currently totaling to 2.68%), while paying my investors 1% for guarantying the loan

Key advantages of a bank loan (instead of eaither Legacy or CASH programs):

  • Zero out out of pocket (incl. invoice price, transport, setup, HVAC, etc, etc)
  • Much lower interest rate
  • No limitation on which manufacturer is used
  • Volume manufacturer discounts
  • Perm out the loan in a few years

Do you agree that the bank loan route is the most advantageous?

As always, thanks for your time.

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