I have an interested party in my duplexes. I want to sell for Capitol to by a MHP. Potential buyer already owns 300 units in the area and has a very high net worth. He wants me to carry paper but numbers have not yet been discussed. Assuming a ltv ratio with 50% plus equity, a 5.5% interest rate and say a 5-8 year baloon, what type of offer should I expect on the note? Is 90% possible or is 80% more realistic?
Any experienced input is very appreciated
Check with blackburneandsons.com. They have what looks like a pretty square deal and they are looking for notes, according to their website. I will be investing with them this month, as soon as I can get a little time off.
Jim Allen
Jim, did you mean you are putting cash to them for a return, or you are selling a performing note to them in exchange for cash?
Brandon, sorry for the confusion. I will be investing in their Blackburne and Brown Fund II which looks to be a real good place to park cash for awhile. Projected 8% return. I do not own any notes right now. Later I may be buying notes, when I have more time, but very busy now. Fractionalized notes are better in my opinion, at least for a small investor like me. Blackburne also has fractionalized notes at typically 10k to 25k minimum.
Jim Allen
Coach,If you structure it correctly, you could get nearly full face value for a note at 50% LTV.I can help structure.Mike
Thanks Mike. If it comes down to it I’ll take you up on that. The offer hasn’t come through yet. One of the partners got sick and went into the hospital.