Posted by johnny KCMO on January 29, 2004 at 19:10:27:
You must take title in order to sell. The other thing you can do is tell the seller that you have a buyer for the trailer for more money than they selling are for, however you are financing the deal. Have the seller contact the buyer and say that they are the party selling the property and that you will be financing the deal. This would be more like a real estate deal were the owner sells the house “FOR SALE BY OWNER” and YOU are the “BANK” in the DEAL. The easiest way to do this deals is to take possession of the mobile home title it pay the min taxes. Do a quick title, where you can hand carry the title to the state capital and get it within 24 hours. In my state of MO the their is no sales tax on mobile homes. However, you will have to pay a small fee for the state having to do somming fast, that usually take 6 weeks.
Early in Lonnie Scruggs book he gives and example of just financing a home for someone without the purchase and hold time. Basically a flip.
Do any of you do these?
I have thought of doing these when I can not find another way to keep money busy.
Philip
Posted by Brian (CA) on January 15, 2004 at 17:07:42:
Phillip,
I have done this in the past and it has worked out pretty well. In fact, I am in the process of doing one right now. The seller of a mobile home is asking $7,850 which is what retail for the home is. The seller has had the home on the market for over 2 months and wants to get rid of it. I talked to her today and she said she would take $4,000 cash for it.
I called the buyers who told me about the home and they agreed to pay $8,000 financed for this one with $2,000 down. They want to pay the home off in 2 years with payments of $284.55. The yield on this deal is ~150% or good 'nuff.
These buyers already live in the park (they have an RV) and have great recommendations from the manager. I will just check their credit and as long as it comes back decent I have a pretty good situation.
I have done this 2 other times in the last 2 years and both have paid off early. If you have the money to invest then it can work pretty well
did you just work from a recommendation with the park manager?
I am wondering the best way to get the word around that I might want to do this type of thing.
If you do this are you taxed like a dealer or investor?
Philip
Posted by Brian (CA) on January 16, 2004 at 10:59:12:
I am always selling mobile homes and am always running an owner finance ad. What happens is people will come and look at the homes for sale and if they don’t like them or have some other reason for not wanting this home I give them the option of financing a home for them. I have never tried to advertise just for this scenario but it might work. Other than that I just tell everyone who doesn’t seem interested in the home that I can finance one for them if they find one.
As far as taxes go, I am taxed as a dealer for this situation because I actually buy it first then sell it to the new buyer. However, they may be a creative way around this and someone on this board may have some good ideas.
I would think if I never bought and wasn’t on the title, except as leinholder, I would be an investor.
I will ask tax people, or our accountant.
Thanks,
Philip
Posted by johnny kcmo on January 29, 2004 at 10:00:54:
This can be done, however it is illegal to do this. Is call selling the home with an open title. You can do this until you get caught, then they will lower the hammer on you. If you buy a piece of peresonal property that requires a title to prove ownership, then you have to register yourself as a owner in order to sell the property. The only person that can sell a trailer is the owner. Unless you have an arrangement with someone to sell it for you. This is my first posting on this site, and enjoy all the info involved here. My knowledge is in the used cars arena where I did the lonnie deals on cheap foreign cars. However the same applies. Reagards Johnny KCMO
But instead just provice financing for the buyer. I might have to arrange for the seller to come down a little and the buyer to go up, per Lonnie, to give me a spread…but I would not have the intent of buying or selling the home, just financing it.
Think that would work?
Philip