Park Manager Says Individual Can't Finance
I was looking at purchasing a mobile home for cash with the intention of reselling, offering owner financing. I called the park manager and she said they call that subleasing and won't allow it. They want to see either a free and clear title or a bank as the lender, not an individual.
Anyone know any other way to work this?
I am not sure they have a legal leg to stand on.
If you buy for cash then you pass their first hurdle.
If someone buys from you then I do not think the park can restrict who is listed as the lender. They can not tell you who you can sell to.
What is legal and what they try could be two different things.
If you do go forward get a copy of the park rules and the application plus credit criteria. If they fail to accept someone who passes the published criteria they can be reported for discrimination. Who someone borrows from does not seem to be a legitimate reason to fail someone on a credit check.
John
[addsig]
Ditto what John said.
Having the park manager on your side is a big bonus. They can lead you to potential sales, and buys. Fighting an ignorant/uncorroprative park manager is a lose-lose headache.
Meet with them, educate them that you are not sub leasing, etc. you are similar to the the dealer that offers financing. also let them know the advantages you bring to the park....
Incase you don't know...
1) you advertize for new tennants.
2) You bring them good solid tennants
3) You fix-up and improve the properties you work with in the park making the park a better place for all the tennants. etc. etc.
If they still do not come around, ask if there are any vacant homes that are not paying their lot rents... See if you buy that home and then turn ther loss into a performing lot. But be careful here to a) make sure you prepair a proposal that clearly states that you will not be subject to any back lot rent. and b) you don't get a total junker that is too big a project for you abilities, time and finances.
I would go find a more friendly and supportative park to work in. There are too many deals to mess around with people who do not want to deal.
Sue,
You do need the park manager on your side. The park manager can decide not to approve anyone who tries to buy your mobile home. That is a trick they do here in Maryland. That said, there is nothing that says that you can't have one LLC buy the home, and another one do the financing. Maybe the second LLC has the word, "financial" or, "funding" in the name somewhere.
BC, a comment on your statement: "The park manager can decide not to approve anyone who tries to buy your mobile home. That is a trick they do here in Maryland."
A MHP owner did that to excess in WA State, rejecting all the applicants the poor MH seller brought to the MHP owner...and then the MH owner sued that MHP owner and WON in a well known WA Supreme Court decison: Etheridge vs. Huang.
The WA SC held that that MHP owner did NOT have the right of unreasonable rejection of those applicants and their having done so caused money damages to the MH owner/seller, allowing the damaged seller collect damages from that MHP...as I recall, in the sum of about $100,000.
I'd maintain that anybody in any state would have the same rights, and if a MH seller could prove (should not be that hard to prove) that their "reasonably OK credit" buyers were rejected by the MHP, which then allowed a "no better credit" buyer to buy it, there would be a reasonable ground for a damage suit.
Morale? Don't let any MHP management push you around, as you've got legal rights too.
Also, The rejected tennants have equal housing rights laws to protect against such abuses. If there only reason for rejection is their affialiation with a particular MH seller the MHP manager is treading on thin ice.
Reguardless, MHP managers are much better as allies.
Bruce's last post was what I thought. Does anyone really go to these lengths for a mobile home that will cost under $2000?
I did call her again yesterday to be sure she understood what I wanted and she insists per their park rules that it's 'subleasing' and not allowed. I then asked if they had a list of approved lenders and she said 'we just know' which ones were acceptable.
I've already stepped aside on this one as the park will get possession of the trailer in a few days - perhaps that's their reasoning - take them back and make that few thousand dollar profit themselves - although in this case my paying the back lot rent and paying future rent until I moved someone in would be the cost of the trailer and I'm pretty sure they don't finance them themselves at this park.
I am new to mobiles. But it seems to me if the manager has an issue over financing WHY does boy genius have many empties not paying rent? Sounds like he is hassling the wrong people.
It depends on the type of loan you are getting. There are rehab loans out there..some will apraise the home to after repair value and close at once leaving the fund in escrow for the repair. spk to your mortage pro or investment loan officer or fire him for a new one..
As far as the home owner, you want to prize the home-as I believe he is doing- having in mind the repair cost and time....meaning... reduce the prize offer
Cheers and good luck