Posted by Tony Colella on May 20, 2010 at 07:43:39:
Na, just another investor trying to feed his family, no Guru but lots of black and blue marks to show my time in the game I guess.
First let me re-state that I have kept all my homes as rentals so my opinions of lease/optioning the homes is just an opinion and you would be best served by responses from folks actively doing lease/options (perhaps Ernest Tew style) and even better if they are from your state.
In Asheville, NC where my properties are, the local small claims court handles evictions quite easily. Until recently it is my understanding that lease/option folks have used the 2 document (separating lease from option) approach but the magistrate who tries the cases has caught on and at any mention of such an option kicks the case out and forces the landlord to refile in General District Court. I do not believe this is the practice state wide but it may be growing.
General District Court may be a bit more expensive and formal but this does not mean you won’t be able to evict. In Virginia where I started my Lonnie deals, all of my evictions went through General District Court so it wasn’t any big deal.
I do not know how General District court will treat the 2 document argument or any assertion by the tenant/buyer that they have equitable interest in the property (although few if any probably will show up or make the argument).
I say this only as a warning and not to deter you or anyone from using this approach. I just want everyone to run the full course of due diligence to make certain they can get the home and land back promptly. Too many folks write me saying they have tried this approach or that approach and now find that they have no idea how to navigate their court system to get the property back. This leads to the tenants staying longer, doing more damage and burning the investor out. It is the investor?s job to know how to respond to these eventualities. If/when the deal goes up in flames, we must know where the fire escape is. Never allow the tenant to know more about the law and procedure in your county, than you do is my point.
Best wishes,
Tony
spliting a land home pkg - Posted by Auctioneer (TN)
Posted by Auctioneer (TN) on May 19, 2010 at 19:18:44:
Does anyone have experience in selling a dbl wide where it sits on a single lot. I have been reting it for 6 years now and it’s probably 15 yrs old now. I want to sell the Dbl wide w/ attached (added 2 car carport). I know anything is possible and can be done. what are the pitfalls. I do not want the maint. hassle but want the land and it’s reveue. Of course I’de have to finance the home and rent the lot to a buyer. For the same reason I own a park but do not own any units (exception is if I buy unit from an old tenant to sell to new). I am spending about 10-12k fixing it up after the last 5 yr tenant who lived very hard.
Thanks for any insight on this that you can offer!
Re: spliting a land home pkg - Posted by Tony Colella
Posted by Tony Colella on May 19, 2010 at 19:31:47:
I would look into the legal time frame and cost of how you evict them from the land if they own the home (NC wants the landlord to move the home to a bonded storage lot). How long will it take and how much will it cost you?
If you have to repo the home for non-payment, what are the answers to the same question?
How does TN view the S.A.F.E. act?
All this is one reason I still rent these things out but trust me, its not picnic either. At least I can still get the property and home back quickly to put an end to the pain.
Tony
Re: spliting a land home pkg - Posted by Auctioneer (TN)
Posted by Auctioneer (TN) on May 20, 2010 at 02:23:28:
Good Point Tony. That is exactly the thought provoking comments I was after. What do you think about a lease purchase situation where in case of default or eviction the contract to purchase becomes void and the deal reverts and is governed by the lease terms of a seperate lease contract? I use this method for my stick built lease purchases. Of course, the main diference here is that the land is only under a lease and the modular is under a lease purchase contract. I was also thinking that I could build into the price and contract that upon my giving a reasonable notice that the home must be moved off of the property that I would pay upto 4k toward moving expenses. Of course the home would have to be paid for at that point. As I said before this property may have commercial potential 5-10 yrs down the road.
I am sincerely honored to receive a response from the Land Home Pkg Guru himself. Does anyone else have experience with this? Thanks!!!