Posted by D.Henderson on March 22, 1999 at 20:58:57:
Hi Alex,
Do you have any of Lonnie’s books about selling, L/O, etc. mobile homes? They are excellent and tell you the ins and outs of the business.
Look for the mobile home parks that aren’t at the top, those are your first Lonnie deals. I always use the term RENT to Own, I’m new at this also, but the books help and the people here are the best.
On to Financial Freedom!
D.
Anybody is doing MH deals in Texas in volume ? “Subject to” revisited. - Posted by Alex Gurevich, TX
Posted by Alex Gurevich, TX on March 21, 1999 at 21:48:35:
Just reviewed all 33 pages of “Texas MH … Act”, which is the letter of the law in Texas with regard to buying, selling, exchanging, transferring titles to MHs. Followed up with a call to our Texas Dept. of Housing and Community Affairs, which is the state govrmnt body regulating the MH industry in Texas.
Based on the “Act” and responses from the govrmnt officials I received, I’ve got cold feet initially. Seems like we, here in TX, are being regulated to the extreme. Let alone the licensing requirements, one can’t really deal in MHs unless one buys on the all cash basis.
The law explicitly prohibits selling, exchanging, or lease/optioning MHs without giving a buyer a clear title, which the law defines as paying off all prior liens.
That appears to cut us, investors, from buying something “subject to” or on lease/option, since sellers by law would have to pay off lender’s lien. That would seem to defeat our strategy of “taking over” payments and selling with our own financing of some sort (which would in turn, again violate the law, since we would not be able to deliver a clear title).
I seem to have spotted one white area that is not covered by the law,- renting. The “Act” does not regulate buying for rentals, and/or renting MHs. Again, the govrmnt officials confirmed the law does not have anything to do with renting MHs. That would seem to allow to rent with option to buy from an owner who has an MH with a lien, and to rent with option to a prospective buyer. (Funny enough, a transaction like that would not even require a license.)
The only problem I see here is that most of the decent MH parks around town would not allow tenants in the park.
So, until I buy my own parks what do I do ? How do you guys and girls in Texas get to do any business?
Sorry, about the long rambling; I am just trying to figure out my ways. The books are a good start, but they don’t answer questions on how to navigate local laws safely and still be in business.