Is this PM misunderstanding me? - Posted by Jodi

import · October 12, 2005, 9:03am

Posted by Jeff-oh on October 20, 2005 at 22:05:23:

After you start to get some positive fedback that they are receptive to Mobile home investors. This may be in the initial meeting or later.

The manager does not need to know every detail of your business. But you do not want to come off like you are hiding something. If asked straight give a straight answer.

I sell providing seller financing, just like a bank. If the new buyer defaults on the lot rent, I will be responsible of the lot rent when I reposess the home after they are evicted.

Jeff

import · October 12, 2005, 9:03am

Is this PM misunderstanding me? - Posted by Jodi

Posted by Jodi on October 12, 2005 at 09:03:32:

I am a reader of this forum, but have not posted before. I have a question that I couldn’t find in the archives…

I went to talk to a PM Monday, and tried talking to her about a home for my daughter. I thought this would be like the “young couple” technique, except that it’s true, my daughter (22) is looking for a place.

I ask if we could owner finance it to her.
“Absolutely not.”
Why is that?
“We do not allow that, ever.”
Is there a reason for this?
“When there’s a land contract, and we have to go to court, then we have to bring in THREE people, and it is a nightmare.”
How do people buy the homes then?
“Cash.”
So, if they don’t have cash, then what?
“Too bad, they can go somewhere else. People are always trying to pull stuff by not putting the home in their own name, and so on, so we just don’t allow it any more. Period.”

That is how this started out…I was really discouraged and nervous since she seemed so hostile. When she mentioned the part about land contracts, I asked her if that was the same thing as owner financing. She said yes, but I’m wondering if she is correct. I think she thinks the title stays in the Investors name only, till its paid off. Does it seem like this is the case? She wants the buyers name on the title. That is different from the way owner financing is done, is that true? Are she and I on different pages here?

Anyway, I just tried to keep her talking, changed the subject a little, talked about specific homes in the park, asked about rules, thanked her a ton for all the help, and she eventually settled down a bit and was almost being friendly. I thought this might be a dead end, but I wanted to win her over a little, so I could maybe try her again in a while…now that I showed her I’m not an evil scammer! Gotta keep my bridges unburned…

Thanks for any thoughts on this.
Jodi

import · October 12, 2005, 4:41pm

Re: Is this PM misunderstanding me? - Posted by Jeff-oh

Posted by Jeff-oh on October 12, 2005 at 16:41:51:

I read that you are not tring to do Moble home investing but just getting a home for your daughter.

If that is the case none of what the PM said matters.

Find a home negociate a deal. Put in a clause that the deal is subject to your daughter being accepted as a tennant to the park.

Have daughter go to PM and apply for park tennancy.
once that goes through

You pay the current seller cash, have the title put in daughters name and have the daughter pay you back. Formal note or not it depends on your relationship with her. You can either file a lein on the home or not. Again depends on your relationship with daughter.

You are not an investor in this case just a concerned parent.

import · October 12, 2005, 3:02pm

Re: Is this PM misunderstanding me? - Posted by Philip

Posted by Philip on October 12, 2005 at 15:02:25:

What Steve said…plus…be patient.

The more you circulate around and do a few deals…or try to do them…the more PM’s will accept you.

They may still say no…but if you never make them mad you can always ask again.

Philip

import · October 12, 2005, 10:04am

Re: Is this PM misunderstanding me? - Posted by Kent TN

Posted by Kent TN on October 12, 2005 at 10:04:39:

This situation is common here in Tennessee where Clayton owns several large parks. My strategy is to tell them what I do, but don’t use the term owner financing. Ask the manager if everyone in the park owns their home free amd clear. She will say no, most still owe on their homes. Then you say, we are a small finance co. just like Vanderbilt or 21st mortgage. They are 3rd party lenders too, right. The only way you can deal in their park is to put the title in the buyers name and show them proof. It can not resemble a rental, lease to own, lant contract at all. If they still will not work with you, go elsewhere.

import · October 12, 2005, 5:11pm

Maybe went the wrong route - Posted by Jodi

Posted by Jodi on October 12, 2005 at 17:11:08:

Actually, I’m trying to kill two birds here. I’m trying to feel out the PM on the financing issue, by using my daughters need for a home. She may or may not buy a MH, but rent an apartment instead. Maybe if I wanted to know more about the investment end, I should not have used the scenario with my daughter. I DO NOT want to be dishonest in anyway. However, if I go back and talk investment, it may look like I was making it up now!

Bottom line, I AM more interested in investing than getting house for the kid. She is not desparate at this point.

import · October 12, 2005, 11:52am

NO!!! - Posted by Steve-WA

Posted by Steve-WA on October 12, 2005 at 11:52:50:

You said, “Then you say, we are a small finance co. just like Vanderbilt or 21st mortgage”

BUT YOU’RE ABSOLUTELY NOT!

You are a seller - if you start presenting yourself as a lender, a finance company, you are opening yourself up to a new set of governmental regulations - FEDERAL regulations. Dude, don’t even go there.

You are not a third party lender, you are a second party seller. Owner financing, is not what 21st and Vanderbilt do.

I agree only with the last three sentences of your post:

“The only way you can deal in their park is to put the title in the buyers name and show them proof. It can not resemble a rental, lease to own, lant contract at all. If they still will not work with you, go elsewhere.”

So, to Jodi: You have to finesse your presentation. "I only want owner occupants. I don’t want a contract for the title; I want their name on the title. They will be owners, and they will care for the home as an owner.

I think the way you are presenting this PM, they are operating illegally. Easy answer, go to another park, do your thing, then in a year, go back to this PM: you have a track record, you can show a title that has your buyer as registered owner, you have other PMs as references.

import · October 14, 2005, 2:27pm

Re: Maybe went the wrong route - Posted by Jeff-oh

Posted by Jeff-oh on October 14, 2005 at 14:27:45:

No problem.

I would go hit a different park. Find a friendly park and do one good deal then you can tell this PM to call that PM for a referance. They do all know each other and they do talk.

If this is the park you really want them I’d say Practice your pitch with your spouce or daughter.

Think of wht the PM’s concerns may be. Have an answer ready. By all means look professional in you presentation. (this means you know your stuff inside and out… not suit and tie).

PM’s can smell the I am not sure I know what I am doing and read it as this guy may cause me trouble.

Know the lingo. I am a MH investor, I buy, fix up and resell used moble homes in parks. I do not rent, I do not lease the new buyer is the title holder. (they do not need to know you hold a note or sell on payments at this time) All buyers will be sent through this office an apply for tennancy in the park prior to selling any home.

I work with the park to bring in good solid tenants. I help free up you the PM’s time by doing the pre-screening work for you. I help promote the park as a good place to live. By renovating and fixing up the homes, I make the park a nicer place to live. I help keep the middle aged homes from becoming delapidated and a burden on the park. I can help the park by purchasing some of the no performing repo’d homes and getting a paying tennant in them. If the relationship works out I can even start to bring in homes to turn empty non paying lots into paying lots.

etc. etc. answer the PM’s main question what are you going to do for me. Are you going to save me time or cost me time and effort.

A word of caution… DO NOT PROMICE anything you do not or cannot delever on within 6 months. ie. if you are not in a position to move a home don’t say you will. (Karl-oh excepted)

good luck you can do it.

import · October 14, 2005, 6:42pm

Re: Maybe went the wrong route - Posted by Jodi

Posted by Jodi on October 14, 2005 at 18:42:14:

Thanks Jeff-
I appreciate the encouragement. One Q on your post above…“(they do not need to know you hold a note or sell on payments at this time).”

When DO they need to be made aware of this?