Posted by Robert (Houston) on January 12, 2001 at 22:29:39:
I have a very profitable deal in a park with no PM. The owner is a hands-off kinda guy. You know the type, the “I don’t care as long as they pay the lot rent!”, type. He has verbally assured me that it would be no problem for the buyer to rent the lot. I asked if I could get him to sign a lot lease agreement. His reply, “Oh, I never do that kinda thing! It’ll be okay”. So I persisted. Could I get you to meet with me to sign an agreement. To which he replied “I guess so.” I, of course said, "We could get him to complete a credit application at that time. “Credit application!” he said. I start to think, why doesn’t he just sell me this park since he is so disinterested. (Still persuing that idea)
If its not too late to make a long story short, it seems I’m having to cover myself on this one.
The deal is I have a 30 day contract on the home which I will pay $600, $160 lot rent, and $200 in referral fees. No fixup. AS IS sale. The buyer offered $600 CASH and I countered with 'How about $200 a month for 12 months ($2400). His reply, “OK!”
I’m thinking of selling to him, if his credit pans out, without a lot lease agreement. But then I think, if the owner gets crazy and makes him move the home he’ll probably default on the note and I’ll end up in court all for the lack of a lot lease agreement.