Include Lot Rent? - Posted by John OH

Real Estate Investing Mobile Homes & Mobile Home Parks
1

Posted by John OH on March 14, 2004 at 21:21:13:

Thanks Teddy,

Wasn’t realy thinking of it being a benefit to me. Adding an extra fee to the lot rent might even cause them to cash you out sooner to get a lower lot rent, Huh?

thanks Teddy,

John

2

Include Lot Rent? - Posted by John OH

Posted by John OH on March 13, 2004 at 09:53:27:

I noticed below a question on guaranteeing lot rent. I have not done any deals yet, approached one park owner who will only cooperate if I collect lot rent.

Is that a good idea? If so would that be part of my sale agreement with the purchaser? or some separate agreement?
Any counter argument I can give park owners that insist on this?

Thanks, John OH

3

Re: Include Lot Rent? - Posted by TeddyB_SC

Posted by TeddyB_SC on March 14, 2004 at 18:37:29:

John,
I buy MH’s and put them on my own lots, so I haven’t done a “Lonnie” deal yet. But, this experience may help you.
Several years ago I friend moved across country. They had a SW that they owed like 40K on. They couldn’t sell it, so they asked me to find a tenant. The deal was the tenant would pay rent to owner, who was across country, and lot rent to the park owner who lived in town.
Nine months later, they called me to evict the tenants, which I did(all of this for free mind you, since we were friends).
They decided to let the home go back to the bank. That’s when the surprise came. The tenants did not make a single lot rent payment for 9 months. The park manager didn’t care, because he knew that home wasn’t moving unless he got his lot rent.
Guess who got blamed for NOT babysitting THEIR tenant? Needless to say, I am no longer their friend.
So, if I ever do a real “Lonnie” deal on rented land, I would guarentee the lot rent. For my trouble, I would bump it up $20-25 a month.

Just my thoughts,
TeddyB_SC