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Financial Consultants De Soto MO

The Seller Finance trap begins with a seller who is having trouble finding a buyer. Maybe the park’s vacancy is too high, maybe the location is too rural or in obvious decline. Whatever the cause, the seller can either sit on the park for an eternity, or find a creative way to attract a buyer. And what can be more attractive to a buyer than an easy to qualify, below market interest rate loan.

Mrs. Rita K. Mahn, CFP®
(636) 931-1900
P. O. Box 727
Festus, MO
Firm
Wells Fargo Advisors, LLC
Areas of Specialization
Retirement Income Management, Retirement Planning, Small Business Planning, Women's Finances, Young Professionals
Key Considerations
Average Net Worth: Not Applicable

Average Income: Not Applicable

Profession: Not Applicable

Data Provided by:
Mr. Frank C. Weber, CFP®
(636) 797-3244
10581 Business 21
Hillsboro, MO
Firm
Edward Jones
Areas of Specialization
Asset Allocation, Education Planning, Estate Planning, General Financial Planning, Insurance Planning, Long-Term Care, Retirement Planning
Key Considerations
Average Net Worth: $500,001 - $1,000,000

Average Income: $100,001 - $250,000

Profession: Self-Employed Business Owners

Data Provided by:
Bank of America - De Soto
(636) 337-4411
406 S. Main Street
DeSoto, MO
Type
Banking Center
Services
Banking Center Services: Change Order, Commercial Deposits, Night Deposits
Outdoor ATM Services: Open 24 Hours, Talking ATM, Braille, Accepts Deposits, Deposit Image
Languages
English, Spanish, Chinese, Korean, French, Russian, Portuguese
Office Hours
Monday 9-4:30
Tuesday 9-4:30
Wednesday 9-4:30
Thursday 9-4:30
Friday 9-6
Saturday 9-12
Sunday Closed

US Bank - Crystal City Office
(636) 931-2292
550 Bailey Rd
Crystal City, MO
Drive Up Hours
Mon 08:00 am to 06:00 pm
Tue 08:00 am to 06:00 pm
Wed 08:00 am to 06:00 pm
Thur 08:00 am to 06:00 pm
Fri 08:00 am to 06:00 pm
Sat 09:00 am to 12:00 pm

Bank of America - Pevely
(636) 475-2810
8601 Daniel Dunkin Blvd
Pevely, MO
Type
Banking Center
Services
Banking Center Services: Change Order, Commercial Deposits, Night Deposits, Drive Up
Outdoor ATM Services: Open 24 Hours, Talking ATM, Braille, Accepts Deposits, Drive Up, Deposit Image
Languages
English, Spanish, Chinese, Korean, French, Russian, Portuguese
Office Hours
Monday 9-4:30
Tuesday 9-4:30
Wednesday 9-4:30
Thursday 9-4:30
Friday 9-6
Saturday 9-12
Sunday Closed
Drive Up Hours
Monday 9-5
Tuesday 9-5
Wednesday 9-5
Thursday 8-6
Friday 8-6
Saturday 9-12
Sunday Closed

Mr. Larry D. Mosier, CFP®
(636) 931-1900
1311 Veterans Blvd
Festus, MO
Firm
Wells Fargo Advisors, LLC
Areas of Specialization
Business Succession Planning, Debt Management, Employee and Employer Plan Benefits, Insurance Planning, Intergenerational Planning, Investment Management, Life Planning
Key Considerations
Average Net Worth: $500,001 - $1,000,000

Average Income: $100,001 - $250,000



Data Provided by:
Bank of America - De Soto Motor Bank
(636) 337-4411
490 N. Main Street
DeSoto, MO
Type
Banking Center
Services
Banking Center Services: Drive Up
Outdoor ATM Services: Open 24 Hours, Talking ATM, Braille, Accepts Deposits, Drive Up, Deposit Image
Languages
English, Spanish, Chinese, Korean, French, Russian, Portuguese
Office Hours
Monday N/A
Tuesday N/A
Wednesday N/A
Thursday N/A
Friday N/A
Saturday N/A
Sunday N/A
Drive Up Hours
Monday 8-5
Tuesday 8-5
Wednesday 8-5
Thursday 8-6
Friday 8-6
Saturday 9-12
Sunday Closed

Bank of America - Festus
(636) 931-9500
998 E. Gannon
Festus, MO
Type
Banking Center
Services
Banking Center Services: Change Order, Commercial Deposits, Night Deposits, Drive Up
Outdoor ATM Services: Open 24 Hours, Talking ATM, Braille, Accepts Deposits, Drive Up, Deposit Image
Languages
English, Spanish, Chinese, Korean, French, Russian, Portuguese
Office Hours
Monday 9-4:30
Tuesday 9-4:30
Wednesday 9-4:30
Thursday 9-4:30
Friday 9-6
Saturday 9-12
Sunday Closed
Drive Up Hours
Monday 8-6
Tuesday 8-6
Wednesday 8-6
Thursday 8-6
Friday 8-6
Saturday 9-12
Sunday Closed

US Bank - Potosi Office
(573) 438-2265
707 E High St
Potosi, MO
Drive Up Hours
Mon 08:00 am to 05:00 pm
Tue 08:00 am to 05:00 pm
Wed 08:00 am to 05:00 pm
Thur 08:00 am to 05:00 pm
Fri 08:00 am to 06:00 pm
Sat 08:00 am to 12:00 pm

US Bank - Leadington Office
(573) 431-2265
214 Woodlawn Dr
Leadington, MO
Drive Up Hours
Mon 08:00 am to 05:00 pm
Tue 08:00 am to 05:00 pm
Wed 08:00 am to 05:00 pm
Thur 08:00 am to 05:00 pm
Fri 08:00 am to 06:00 pm
Sat 08:00 am to 12:00 pm

Data Provided by:

Beware of the Seller Finance Trap

BEWARE OF THE SELLER FINANCE TRAP
Sat 08/15/09 08:48:07 pm
by Frank Rolfe

There are few things more attractive about the mobile home park business than seller financing. Non-recourse seller financing allows the buyer to escape the hassle and scrutiny of bank lending, while at the same time offering some degree of insurance against fraud (you have not yet paid the seller in full), the ability to give the park back and walk clean in the event of catastrophe, and often includes a below-market interest rate and longer loan term.  

That being said, there is a trap often used by sellers that is baited with seller financing, and it is important to always be aware of, and stay clear of, this danger. 

The trap begins with a seller who is having trouble finding a buyer. Maybe the park’s vacancy is too high, maybe the location is too rural or in obvious decline. Whatever the cause, the seller can either sit on the park for an eternity, or find a creative way to attract a buyer. And what can be more attractive to a buyer than an easy to qualify, below market interest rate loan. 

Of course, there’s nothing wrong with a below-interest rate seller note. But not when it is used as a trap. And many times, that’s exactly what is being set. 

You see, the seller knows that the park will never hold up to the scrutiny of a bank – the appraisal, the independent review of the numbers, even the negative logic of the loan officer. To keep you from finding out that the park is overpriced, Do the Search or in a bad neighborhood, or basically completely unable to be financed, the seller offers to carry the loan and cuts the bank out of the loop day one. That’s the first leg of the trap.

The second part of the trap is to bait the deal with a super low interest rate to make the park look like it is a profitable investment, even though it could never carry a regular bank debt load of the same size. If a park is a 4% cap, then what better way to disguise the poor performance than with a 2% interest rate on the mortgage? The seller is effectively cooking the books with the buyer’s blessing. When you accept a cash-on-cash return that is spiked by ridiculously low interest rates, then you may be getting into trouble.

The final part of the seller trap is to offer only a short loan term, maybe two to five years, and the below-market interest rate for only the first year or so. What this does is to put the buyer in a negative cash- flow situation almost immediately, and force the round of bank loan requests that normally end in nothing but rejection. Faced with the loan coming due, and no bank loan prospects, the buyer often gives the park back to the seller, less his 20% down payment. There are sellers out there who have sold the same park two or three times under this framework, garnering 60% of their purchase price in down payments, and still owning the park. 

So how do you avoid ...

Click here to read the rest of the article from mobilehome.com

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GFOA Annual Conference 2018 - Government Finance Officers Association
Dates: 5/6/2018 – 5/9/2018
Location:
Saint Louis
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