Taking Over A Mobile Home
Someone wants to give me a mobile home in a park for what is owed, I would just takeover payments. I've never delt with DOW's so I guess I'm wondering in it would be like structuring a residencial deal. For instance, could I take it over sub to? L/O? L/C? What would the best way to take title creatively? The home in in a park that allows rentals.
Lot rent and payments total: $500
I have a l/o tenant lined up for $650 with $3K down.
Both the tenant and the mobil just kinda dropped in my lap at once. I figured their must be a creative way to make some quick cash, I just don't know if I can structure it like a SFR.
Anyone got a clue?
Have the seller assign the loan over to you, or make a deal with the seller to take over the payments.
If you are familiar with SFR's then set it up exactly like a SFR. Make sure that you get the payments, and then you make the lot payment, so there are no surprises should your tenant not pay. You may also want to figure in water, trash, etc payments in as well.
Good Luck,
Kyle
what is SFR? (single family rental?)
SFR-
single family residence.
Is it possible to take over sub to?
A couple of thoughts:
First, it's not usually the best deal for a REI to "take over" any payments on a MH in a MHP...normal sales deal by dealer is for way too much money, big payments, inflated price, etc.
Much better to look for & buy MH from FSBO, for cash, than to tie yourself up with those bank payments.
Second, most MHPs in our area don't allow any MH owner to lease or rent to anybody else as tenant, so make sure your MHP would allow that.
It's pretty obvious you aren't familiar with the "bible" on MH dealing for the REI...name "Deals on Wheels", and I'd recommend you absorb it before going much further in MH investing.
I have noticed that in some states that is true. Certain states are a lot more leniant when it comes to subletting. Michigan, Florida, and Texas, tend to be the easiest to work Mobile Homes in Parks, as the rules and laws arent as stringent as other states, I have heard that Maryland is the worst, but I cannot attest to that personally.
If the price of the mobile is extremely high like the previous poster stated, then I would suggest taking the down payment from your seller, and applying that for the assumable portion of the loan for him and then tacking on a secondary loan for your profit. This way you are held harmless should he default. Also you will be first to know since if he isnt paying the first, more than likely he will not pay the second. Then rush in and sell it again, A lonnie Scruggs manuever. I still think its a good deal, no matter which way you slice it, mainly because it involves no out of pocket cash, and it is already sold before its bought.
Good Luck,
Kyle[ Edited by KyleGatton on Date 04/15/2004 ]
Michigan as a state may be more lienent but you need to check with the park owner/managers. Some of the big community operators do not allow wrap around deals. Also be sure of the assumeability of the loan. This is a personal property collateral loan, not real property and the rules can be different :-(