Posted by Philip on February 19, 2003 at 10:59:38:
I guess that may have to be my fall back position.
I’d rather not have to handle it, but I would like to get my foot in the door of this small park. They have another repo they need taken care of, as well as a few empty lots. Plus they are turning what used to be a RV area, back into MH space.
Even though they are only about 50 lots, they will be 65 in a year or so, and I could do some work here.
Like someone advised me here, “it might be the price of admission.”
Thanks for reminding me of that,
Philip
Posted by Philip on February 19, 2003 at 05:53:13:
On my second deal I am working with a PM and owner that are strict as to lot tenants. They understand poor credit, yet they are still fairly picky.
Last night I called the PM about sending her a couple to fill out an application. I also let her know that when trying to tie up my purchase from the finance company; I had told them in my bid I could only pay xx amount because “I have to pay xxx park their back lot rent.”
Right after that she seemed to have a softening of her position on tenants. “We are really wanting to get someone in there…”
Do you think it was the mention of back lot rent?
They love truck driver couples as tenants and I have found one. Yet their credit rating is around only 580. Even though this park says credit rating is less important than some other things I wonder…do they ever let people in with that low of a rating?
Does that back lot rent give me a little leverage with this borderline tenant applicant?
Posted by Chuck-NY on February 19, 2003 at 06:52:34:
Have you told the PM that you will “guarantee” the lot rent payment in case of your buyer’s default?
Have you considered paying the lot rent yourself and have your buyer’s pay you for it? I know some people don’t like to do that (myself for one…) but when it can make the difference of either seeing a check in your mailbox next month or you writing a check for lot rent for a vacant MH…well, you get the idea…
Posted by Phil Pelletier on February 19, 2003 at 16:53:49:
In Oregon (my state), the lien holder in the first position (that’s you and I who are holding the contract) are always responsible for paying the ground rent. Our mobile home is at risk if the tenant does not pay and we do not pay. That is precisly why allthese park owners are getting rich on these new repo houses from Conseco and others. The buyers realize they are upside down in th eloan and they walk away, leaving the lender exposed to the ground rent. Some pay, some do not. Park owner puts a lien on the home for the back rent and the lender abandons the home and the owner applies for title and they have a home to sell on a contract for the next 20 years. Believe me, the park owners salivate when they see a nice shiny new home being moved into their park. They know from experience it will someday be their own. Just a matter of time in many cases.