The Cash Flow Clarion

Financing to purchase a mobile home may be difficult, if not impossible, to secure through traditional lending institutions. For this reason, quite often mobile homes are sold with owner financing. In this situation, the owner of the mobile home provides the financing for the buyer. This may be the case when a mobile home is purchased directly from a mobile home dealer or a mobile home park, or even when the mobile home is purchased from the previous occupant.

Mobile home notes are similar to other real estate notes in that they are cash flow notes and are a liquid asset which can be sold for cash. However, they also differ from real estate notes in several ways that you should be aware of if you are planning on selling your mobile home and taking back a note on it. Firstly, mobile home notes can seldom be sold on creation of the note. Though four months seasoning may be acceptable in some circumstances, twelve months is generally preferred. What this means for you, as the holder of a mobile home note, is that you will need to hold that note for at least one year (and receive monthly payments on it) before you can receive a lump sum of cash in exchange for the monthly payments.

Unlike real estate notes, the market for selling a second mortgage on a mobile home is small and the note must be very desirable to be considered. Try to make sure your note is in first position when it is created. In addition, terms less than ten years on the note are preferred. Statistics have shown that notes with terms more than ten years (especially those between 10 and 20 years) have a higher default rate.

Mobile homes may be located in a mobile home park or on land. If the home is located in a park, the rating of the park will affect the resell value of mobile home note. The higher the park is rated, the more valuable the note will be. Mobile homes notes on homes located in parks with a rating of less than 3 stars will be difficult to sell. In addition, mobile homes notes on homes located on land which is leased or not fully owned will be difficult to sell, whereas mobile homes located on land which is part of the security for the note will make the note more valuable.

The value of a mobile home is generally acquired through a resource known as the NADA guide. It is important to make certain that the sales price for the mobile home is not significantly higher than the NADA book-value, unless you can validate the sales price with an appraisal.

As with privately-held real estate mortgages, the interest rate on a mobile home note will affect the resell value of the note. Under no circumstances should the interest rate go above 16%. Additionally, balloon payments are generally not acceptable, unless a well documented exit strategy can be verified. Down-payments of 10% or more of the sales price are preferred. As with real estate notes, the value of a mobile home note will be affected by the amount of equity in the home.

In summary, mobile home notes can and quite often are sold for cash, much like real estate notes. However, there are a number of differences between real estate notes and mobile home notes that must be taken into account when creating, buying or selling a mobile home note.

First Class Cash Flow Handlers buys and sells privately held mortgages, trust deeds, mobile home notes and other cash flow notes. For more information, visit us at our home page or call us at 401-258-7158.

Pre-Settlement Funding

When you are injured in an accident or become ill because of the actions of another party, litigation can drag on for long periods of time. It is not unusual for a case to take years to make it's way through the court system. In the meantime, you need to have enough money to pay your expenses and bills. This can be difficult if you are unable to work, have a reduced income, or have expenses associated with medical care. This is where pre-settlement funding can be of assistance. Pre-settlement funding can free you from having to accept inadequate or pre-mature settlements because of a lack of income.

Pre-settlement funding is actually a non-recourse cash advance made to you. In return, you promise to repay the advance and associated fees after your lawsuit settles, or after a court victory. This type of funding is not a loan. The cash advance and fees are repayable only after your case is resolved and only if it is resolved in your favor. You repay nothing if your case is lost.

Because of the fees involved with pre-settlement funding, you should carefully consider all of your options before you decide to accept a pre-settlement funding offer. In some cases, a personal loan or other funding alternative may be more cost effective for you. However, pre-settlement funding is preferable to being forced to accept an award that is much lower than what you deserve. With pre-settlement funding, you'll no longer be at the mercy of the person or company that injured you, or their insurance company, simply because of a lack of funds. For more information, contact us.


The Cash Flow Clarion
March 5, 2006
Mobile Home Notes Financing to purchase a mobile home may be difficult, if not impossible, to secure through traditional lending institutions. For this reason, quite often mobile homes are sold with owner financing. In this situation, the owner of the mobile home provides the financing for the buyer. This may be the case when a mobile home is purchased directly from a mobile home dealer or a mobile home park, or even when the mobile home is purchased from the previous occupant. Mobile home notes are similar to other real estate notes in that they are cash flow notes and are a liquid asset which can be sold for cash. However, they also differ from real estate notes in several ways that you should be aware of if you are planning on selling your mobile home and taking back a note on it. Firstly, mobile home notes can seldom be sold on creation of the note. Though four months seasoning may be acceptable in some circumstances, twelve months is generally preferred. What this means for you, as the holder of a mobile home note, is that you will need to hold that note for at least one year (and receive monthly payments on it) before you can receive a lump sum of cash in exchange for the monthly payments. Unlike real estate notes, the market for selling a second mortgage on a mobile home is small and the note must be very desirable to be considered. Try to make sure your note is in first position when it is created. In addition, terms less than ten years on the note are preferred. Statistics have shown that notes with terms more than ten years (especially those between 10 and 20 years) have a higher default rate. Mobile homes may be located in a mobile home park or on land. If the home is located in a park, the rating of the park will affect the resell value of mobile home note. The higher the park is rated, the more valuable the note will be. Mobile homes notes on homes located in parks with a rating of less than 3 stars will be difficult to sell. In addition, mobile homes notes on homes located on land which is leased or not fully owned will be difficult to sell, whereas mobile homes located on land which is part of the security for the note will make the note more valuable. The value of a mobile home is generally acquired through a resource known as the NADA guide. It is important to make certain that the sales price for the mobile home is not significantly higher than the NADA book-value, unless you can validate the sales price with an appraisal. As with privately-held real estate mortgages, the interest rate on a mobile home note will affect the resell value of the note. Under no circumstances should the interest rate go above 16%. Additionally, balloon payments are generally not acceptable, unless a well documented exit strategy can be verified. Down-payments of 10% or more of the sales price are preferred. As with real estate notes, the value of a mobile home note will be affected by the amount of equity in the home. In summary, mobile home notes can and quite often are sold for cash, much like real estate notes. However, there are a number of differences between real estate notes and mobile home notes that must be taken into account when creating, buying or selling a mobile home note. First Class Cash Flow Handlers buys and sells privately held mortgages, trust deeds, mobile home notes and other cash flow notes. For more information, visit us at our home page or call us at 401-258-7158. Pre-Settlement Funding When you are injured in an accident or become ill because of the actions of another party, litigation can drag on for long periods of time. It is not unusual for a case to take years to make it's way through the court system. In the meantime, you need to have enough money to pay your expenses and bills. This can be difficult if you are unable to work, have a reduced income, or have expenses associated with medical care. This is where pre-settlement funding can be of assistance. Pre-settlement funding can free you from having to accept inadequate or pre-mature settlements because of a lack of income. Pre-settlement funding is actually a non-recourse cash advance made to you. In return, you promise to repay the advance and associated fees after your lawsuit settles, or after a court victory. This type of funding is not a loan. The cash advance and fees are repayable only after your case is resolved and only if it is resolved in your favor. You repay nothing if your case is lost. Because of the fees involved with pre-settlement funding, you should carefully consider all of your options before you decide to accept a pre-settlement funding offer. In some cases, a personal loan or other funding alternative may be more cost effective for you. However, pre-settlement funding is preferable to being forced to accept an award that is much lower than what you deserve. With pre-settlement funding, you'll no longer be at the mercy of the person or company that injured you, or their insurance company, simply because of a lack of funds. For more information, contact us.	In This Issue: Mobile Home Notes Pre-settlement Funding Important Links: The Cash Flow Clarion Home First Class Cash Flow Handlers- Home page for First Class Cash Flow Handlers Note Submission Page- Submit your cash flow note on this page if you would like to sell your note FAQ's Page- Questions relating to First Class Cash Flow products and services Note Holders Page- Information and answers to questions frequently asked by note holders Realtors Page- Information for realtors explaining how owner financing can increase sales and commissions Real Estate Professionals Page- Dedicated to attorneys, CPA's, financial consultants, mortgage brokers, and any other professional whose clientele hold cash flow notes Products Offered- Information about specialized products such as "How To Sell Your Home Fast In Good Or Bad Markets" training course, the "Note Holders Manual", the "Cash For Paper" audio course, and the "Update On Real Estate Newsletter" In Next Issue: Why Offer Owner Financing? Why Would I Want To Sell My Cash Flow Note? Contact Information: First Class Cash Flow Handlers www.firstclasscashflow.com loriehuston@firstclasscashflow.com (401)-258-7158