Because of 100% yields. If they don’t pay, leave whatever and you want your home to stya you’ll have to do it anyway. It in your contract that the people must abide by the park rules, ie mowing etc. The MH’s if you decide to do some do become your Investment, they aren’t for everyone, but the money is good. Something you have to decide for yourself.
Corporate owned mobile home parks seem to call all the shots - Posted by George
Posted by George on September 01, 1999 at 18:26:10:
I have read Lonnie’s “Deals on Wheels” book and have actually found some good deals in my area until I talk with the “corporate run” park manager. They want all the older mobiles re-sided upon sale or transfer of ownership.They want the note holder to be responsible for back lot rent if my buyer gets behind. They even want me to be responsible for mowing the lot if my buyer doesn’t do it in a timely manner.
If I’m going to assume all the liabilities ( in the eyes of park management) for the actions of my buyer, why would I get involved in mobiles ? I’ve still not done my first deal because I’m having problems with the idea of some park manager having that much control over my investment.
Has anyone else experienced this problem with park managers
and what did you do to overcome it? I’d appreciate your comments. Thanks.
Posted by David S on September 02, 1999 at 17:05:48:
This reminds me of a deal I did about 2 years ago. Most would have passed and used some excuse about the park won’t let me do this or that.
A dealer that I buy alot of trade-ins from called about a mh he had taken in a local park. This park is owned by the Chairman and Owner of the largest private bank in the area.
When I called and asked him (personally) if he had any objections to me buying the home for a family I knew… yada, yada. He stated that in NO way was I to do any business in his park. I think this stemmed from an auction where he and I were bidding against one another. He had much more money that day than me, but I did make him spend some of it.
I have been doing business with his bank for several years and to be quite honest, I was a bit flustered with his attitude.
Anyway, I decided to give it a try despite all the flack. I found a buyer FIRST, discussed the deal with them and told them they were buying the home from a finance company and I could arrange everything (the old third party story).
I instructed them to go to the manager, apply for lot rent and show them the purchase agreement. Of course, my company name is that of a finance “source”; “Columbia First Financial, LLC”.
They were approved with flying colors. But, it gets better. Since I have been doing business with the bank, I have gotten to know the loan officer very well. I told him I had found another mh and wanted to do the same as usual… borrow the full purchase amount and put it on a 6 month note, no monthly payments of course. I gave him the make, model, sr#, address, etc. Nothing was ever said.
The bottom line: I did the deal and sold the home to a nice family, AND borrowed the money from the park owners bank, all without his knowledge.
There is more than one way to skin a cat!
Don’t give up without using every creative technique you can find.