Home / How I underwrite / Mobile home note
Deal breakdown
The seller said yes at $41,000. Now the real work starts.
A mobile home note with a 14% target. Here's what I check before the money moves.
| Price | $41,000 accepted offer |
|---|---|
| Big question | Is the home tied to the land, and what does the lien actually cover? |
| Target | 14% net yield target |
The question behind the price
A seller accepting an offer does not establish that the buyer will receive clean title, enforceable documents, or the expected payment stream. A mobile home adds collateral and ownership questions that need transaction-specific review.
What I would verify
- How the home is identified in the documents and relevant ownership records.
- Whether land is part of the collateral and what the recorded security actually covers.
- Whether applicable title or real-property treatment documents support the transaction.
- Any competing liens, taxes, insurance issues, or missing assignments.
- Payment history supported by records, the current balance, and remaining terms.
- Servicing and expected purchase expenses before calculating net yield.
What the $41,000 figure does not tell us
Price alone is not enough to calculate net yield. That calculation needs the amounts and dates of payments, remaining term, any balloon, expenses, and assumptions about defaults or delays. A 14% target is a goal, not a result.
Lesson: A lower price cannot replace proof of what you are buying.
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