As an example, we will use a $20,000 investment.
|# of Years||5||6||7||8||9|
|Month||Date||Loan Balance||Interest||New Loan Balance|
If you’re looking for a really good return on your investment, we offer a guaranteed, hassle free 6.00% Yearly Interest, APR, APY, Yield … on your investment.
The investment is guaranteed by Manufactured Home Notes, which we currently have $2,500,000 that we can collateralize.
We are able to offer this 6% high interest because we charge 12% to owner finance the manufactured homes. There was a profit made from the sale and then there’s a second profit on the interest, minus collection expenses. We’re more interested in the initial profit, so we have more openings for investors that would like to get a good return on their money.
By financing the homes ourselves we tie up our investment capital, which limits us to owner financing only a certain amount of homes per month, which is the main reason we’re accepting investors.
If you’re interested in making higher returns than 6% you could also buy the Manufactured Home Note and do the collections yourself and you can keep the full 12% interest. Remember the interest is amortized, so every monthly payment is divided between Principal and Interest until paid off on a certain amount of time.
On average, one of our note looks like this:
$20,000 Original Sales Price
$3,000 Down Payment
$17,000 Original Balance
$15,000 Current Balance
12% Amortized Interest
$300 / month payments for 7 years
All the manufactured homes are located in Texas, some are on private land, others on Mobile Home Parks.
If you’re buying a note and the customer defaults, which there’s only an estimated 5% chance according to our history; the mobile home can be sold again and the value stays steady or higher because of the low balance of the note and they already went through the expense of the down payment, transporting it to their location, connecting the utilities and the 2 months they had to request habitability repairs. We’re so confident in the value of these notes that we’re willing to take recourse if they default and we’ll either swap the Note for another one, or buy the note back at the current balance and we’ll take the home back, repair it, or move it, or anything needed and sell it again to a new customer, unless you’d like to do that.
Comparing with other Products:
|Product||Money Market||Bonds/T-Bills||High Interest Savings Acct||Certificate of Deposit CD||Manufactured Home Notes|
|Average Yield||0% - 1.59%||0.01% -1.01%||0.01% -1.01%||0.01%-2%||6%-12%|