A man called wanting to sell his mobile home note. The mobile home was in an area that was well known and with a good interview a lot of beneficial information was obtained.
He bought and lived in this double wide when he was in the Military. When he was discharged he wanted to move to Ohio but he had one little problem, finding a buyer for his 16 year old double wide in Houston. He tried and failed to find anyone with cash and was basically backed against a wall to take a note to make the sale. He sold to a couple of deadbeats for $13,000 with a $1,000 as the down payment. They just had to pay $200 a month, for 60 months, with no interest. So far he had only received three payments and had to hire a lawyer in order to collect those!
So here is this note holder, living in Ohio, trying to get his payments from these deadbeats in Houston that wouldn't pay. In the first place, he really didn't want the note , he wanted cash, like most folks get when they sell a home. When he arrived in Ohio he looked everywhere for someone to buy the note. He soon found out that selling a note that was secured by a 16 year old mobile home was not an easy task. Who would want to buy a note secured by an old mobile home? Somehow someone refereed him to the note network and with luck we found a buyer for his note for $3,500.
When the note was purchased there were 57 payments of $200 remaining and the principal balance was $11,400. After receiving only 19 payments the mobile home park evicted the lousy tenants. However, these were a couple of real seasoned pro's when it came to evictions. Using the legal system, they were able to hold off the eviction for several months. When they realized that they were really going to have to leave, they even tried to sell the mobile home and met the same luck as the original owner. Then they tried contacting the note buyer to see if he would buy the thing! They still owed him $7,600 and when the sheriff showed up, plus they owed $1,890 in park rental and legal fees.
The note holder was afraid this pair would be vindictive and try to saw the trailer in half with a chain saw, so he paid them $300 and agreed to satisfy the balance of the note, only if they left the place clean and gave up the keys. Seeing this had been the best offer they had received, they agreed. Paying off deadbeats just leaves a hole in your gut but sometimes you have to act intuitively.
The planets must have been aligned because as they drove away a couple from next door came over and asked the note buyer if he would consider taking their single wide mobile home in trade for the double wide. Man, it was their lucky day. After working the numbers, a deal was made. They got the double wide that was in need of some repair, in exchange for the single wide that was in "good" condition plus a $6,000 note. The note was payable at $300 per month for 22 months. The single wide sold in 10 days for $7,950 with $1,500 down with a note of $169.06 per month for 48 months.
Now, let's figure out how the note buyer came out on this deal.
Originally $3,500 was paid for the note, receiving $3,800 in payments, $300 to pay the deadbeats off and get them to leave, and a double wide with no money invested. To keep the home on the lot and to stay on good terms with the park, he paid the park the $1,890 that the deadbeats owed. So the cost in the home was now $1,890.
Payments on the single wide that was in trade, amounted to $8,115 plus $1,500 down payment that gave a total of $9,615. Payments on the double wide amounted to $6,600. Total on both notes with the down payments came to $16,215, minus the $1,890 paid to the park, left $14,325. If the deadbeats had stayed, it would have only been a total of $7,600. But because the deadbeats were deadbeats they got kicked out leaving an extra $6,725 ($14,325 - $7,600 = $6,725).
Everyone in this scenario had a problem except the note buyer. He solved their problems, and walked away with some sweet cash.
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