Posted by John Merchant on March 04, 2005 at 18:35:19:
While TX does have some legislation on RE contracts, that would have no bearing on MH sales.
The deal you’ve found sure sounds like the way I like to sell, not buy MHs.
Contract for Deed? - Posted by Abel B Ramirez II
Posted by Abel B Ramirez II on March 03, 2005 at 17:13:49:
Ok guys in my quest to find way around the lack of cash to do MH investing I have some ideas and would like feedback.
I have found a lender who can loan me money for older MHs down to like $5,000. It is at a rate of interest of like 14%, ammortized over 20 years. I do pay about 7 points on the loan and 2 are due up front the rest can be rolled into the loan. I also need to give 5% down payment. This is ALL fair to me, I have not problems with these terms.
However, this would mean I am the owner on the title and they are the 1st lienholder. I can not ‘SELL’ the home with owner financing as I must remaing the owner of record. I have heard the term ‘contract for deed’, but also have heard there are some issues with doing that in Texas. I am not sure about what they are.
And lastly, how bad is doing a contract for deed going to look when the MHP does not want me to ‘rent’ the home, yet I am not ‘renting’ but also am not turning over ownership to the occupant.
Any help?
Abel B Ramirez II
REI Noob
214-529-5626