Posted by shawn on September 11, 2010 at 10:14:18:
DOW does contain specific exact details on how to invest in mobile homes. I just need more details dealing with creating notes on mobile homes. Maryland does not require titleing of MH. That said it is possible to go to the DMV and title a MH. Maryland not requiring a title yet offering to title the home confuses me. Thank you for your responce Tony.
Shawn
How to make a note - Posted by Shawn
Posted by Shawn on September 09, 2010 at 21:00:21:
I am working with a MHP on financing a home of theirs for a buyer they have. What is the step by step process for making a note for the home? Does the note need to be notarized? Do I need a lawyer to draft the note? How do I cloud the chain of title on the mobile home when my state (Maryland) does not require mobile homes to be titled? Thank you in advance.
Your friendly used tincan dealer - Posted by John Merchantj
Posted by John Merchantj on September 18, 2010 at 16:14:33:
Since in most states a MH on rented lot is “personalty” just like a car, the people who do this all the time, everywhere, are the used car dealers.
So I suggest you might want to go do a little used-car browsing and tell the salesman that you’d be needing their financing and you’d like to see the note and papers you’ll have to complete.
Or go into any MH dealer and show some interest in one of their cheaper mobiles and do the same thing.
Personally I prefer to start with Lonnie’s forms as they’re simpler and easily tweaked to say just what I want them to say.
what is a “note”? - Posted by Steve-WA
Posted by Steve-WA on September 11, 2010 at 08:44:41:
When I first picked up DOW; before I ever had any idea about anything like this, I didn’t know what the term “note” meant. General term for something that was supposed to be official, and somehow make me some money.
“Note” is shortspeak for a Promissory Note. That is a glorified I.O.U. To draft a note, either go to Office Depot and pick up a fill-in-the-blank Promissory Note form, google and patchwork something together, OR as has been suggested check DOW again. There is an example note in the back of the book, and Lonnie even offers to sell you a disc with all forms on it.
Do like the rest of us did and type out the one in the book.
Notarized? Can’t hurt; likely not required. It’s funny that you’ll pay an attorney to do this.
Re: titles not required, there has to be some kind of proof of ownership for MHs - research that. Scour the local papers and CL for people (Lonnie Dealers) selling MHs on payments, and contact them for advice. Talk to new home dealers who may deal some of their trade-ins this way. Smart ones do; most do not.
Perhaps check the archives for other people who sell MHs in Maryland; contact them by email.
Your persistence will pay off, but you need to do some ground work. Don’t out hte cart before the horse here; you are charging in to find a deal before you have a clue. Last thing you want to do is present yourself to this park like you know what you’re doing, when you don’t.
Some ground/home work needed - Posted by greengable
Posted by greengable on September 10, 2010 at 22:43:12:
Appears you haven’t read Deals on Wheels or you’d have the picture of how seller takes a note.
Do yourself a big favor and read DOW, More DOW and maybe even David Butler’s book if you can still find it so you’ll start with a little knowledge.
Re: Your friendly used tincan dealer - Posted by Shawn
Posted by Shawn on September 20, 2010 at 15:59:10:
Thanks John, I wish I would have thought of that from the get go. I did create the note using Lonnie’s note template in DOW, and tweaked it to fit my needs. I simply had my name added as lien holder to the title at the DMV. No lawyers needed. Thanks again for the great advice.
Shawn
Re: what is a “note”? - Posted by Shawn
Posted by Shawn on September 11, 2010 at 10:25:11:
Steve, I am familiar with what a note is, however not familiar with the steps to create one. I do plan on using the sample note in DOW. My concern is how to make that note legal in case the buyer were to default. For instance with a stick built note the note is filed and recorded with the Register of Deeds. On a MH in MD I’m guessing it needs to be filed with the DMV. I have been unable to find other MD MH investors. All the dealers I contacted do not offer financing.
Shawn
Re: Some ground/home work needed - Posted by Shawn
Posted by Shawn on September 11, 2010 at 03:50:23:
I have read DOW. I understand how notes work. I just don’t have any experience with creating a note. DOW is a great book containing a ton of general information. I’m looking for more detailed information on the step by step process in creating the actual note. My plan is to use my real estate attorney to create my first note.
Re: what is a “note”? - Posted by Tony Colella
Posted by Tony Colella on September 11, 2010 at 15:48:39:
Shawn,
I don’t believe a note is filed with the register of deeds as you suggest, at least not in my state. The Mortgage (also called a deed of trust in some states) is filed at the register of deeds but not the promissory note. The note is referenced in this securing document but not filed. The original note is kept by the lender.
When you file a lien with the DMV they place a lien on a title and you keep the note. I don’t know how Maryland titles mobile homes unfortunately.
The problem you are running into is too much info overload. What you really need is a Maryland mobile home dealer or lonnie dealer to talk to.
Tony
Re: Some ground/home work needed - Posted by Tony Colella
Posted by Tony Colella on September 11, 2010 at 07:21:01:
Shawn, are you sure you read Deals on Wheels? That book does not contain General info, it contains specific and exact details on how to invest in mobile homes.
States do vary in some cases on how they secure the note. Most secure the note by placing a lien on the mobile home title. A few states don’t have titles and use Uniform Commercial Code (UCC)filings.
I would take a look at the notes used by your local banks to secure their car loans. These have been used in local courts and proven. From there you may be able to have the note adapted for mobile homes. Finding other investors in your state will be a huge help.
I won’t go into to lending laws, SAFE act or dealer license issues as they are covered in depth in the archives and I could not do them justice.
Tony
Re: what is a “note”? - Posted by Shawn
Posted by Shawn on September 14, 2010 at 18:28:39:
I created my first note today. I used Lonnie’s note in DOW as a template & tweaked it slightly to fit my needs. The note only yields 13.5% for a 3 year term. I accepted a lower yield to get the first deal done in a very nice MHP that I plan on doing more business with in the future. The deal was not a typical Lonnie deal, as I just provided financing for a sale by the MHP. Thank you for everyone’s help.
Shawn