You do not have to scour the courthouse or do mass mailouts to find good, small notes to buy. Just create them yourself.
Small, well-secured notes can be created by developing small, inexpensive tracts of land combined with used mobile homes. Prices, zoning, and availability obviously vary around the country but this concept probably works in your local area or within a reasonable distance from you.
Let’s suppose you can purchase a small tract of land for $5,000 and after improving it with grading, water, septic, and electric hook-up, you have $10,000 invested. The next step is the most important in increasing the retail value of your investment–adding a used mobile home.
If you added a used mobile home that, after delivery and set-up, cost you say $7,000 you would have $17,000 invested. This land/home package might now be offered for sale at say $34,900. With 5% down, $1,745, and $476.48 per month for 12 years at 14%.
If you receive the $1,745, that leaves you with a $15,255 investment that creates a $476.48 per month cash flow for you for 12 years. A well-secured, low loan-to-value investment that you are VERY familiar that gives you a 37% yield.
This type of investment works well in combination with Lonnie Scruggs-type used mobile homes in parks as investments. Combining the used homes with land creates more long-term income streams and eliminates the hassles of dealing with park managers and owners, lot rents, vacant homes, etc.