Posted by Carl P on March 16, 2006 at 12:46:23:
I see this alot in southern Ca. The parks turn down everyone so they can get their hands on it in order to put a new home on the lot for $$$. So many dirtbags in this world.
Difficulty buying MH with owners approval. - Posted by Warren
Posted by Warren on March 13, 2006 at 19:32:23:
I found a MH that I can do a Lonnie deal. I approach the park manager explaining what I wanted to do. She gave me her approval and mentioned it shouldn’t be a problem. In the mean time, she discussed my situation with the park owners and they said they would not approve of it. I thought that was odd. I get a yes;then, a no. I even gave them my application to do a credit check on me for the rental agreement. They wont take it now.
The owner of the MH told me that they offered the park owners to buy the home, but they said they whether wait for him to die and when the lot rents fall behind, they’ll put a lein on it and take it for free knowing he has no family. Apparently the park owners have turned down 3 applicants on this home within a year.
I wondering if I should just let this deal go or find a buyer, get them approved (if I can), and finance it then. The problem is how do I take control until I find the new buyers and them not finding out what I paid for it. Is it possible to put a wrap around mortgage on this? A letter of intent? or what? I’ll need to put $3,000 of my money to fix it up prior to showing it and selling it. So I need some type of legal or binding agreement on the MH before taking ownership.
Is this deal too risky?
Where I live, California, it seems close to impossible to close a Lonnie deal. I would like to buy a MH park, but that might be a long time off if ever.
Any help.
Thanks Warren,
A little legal advice - Posted by John Merchant
Posted by John Merchant on March 14, 2006 at 19:51:04:
We had a similar situation here in WA recently, where the MHP Owner turned down several good, qualified buyers and eventually caused the MH owner to lose his MH to the MHP Owner for his defaulted MHP lot rent.
That MH owner and would-be seller then learned the MHP had accepted a lesser quality buyer for one or more of the MHP’s own MHs and the apparent reason the MHP had rejected the MH owner’s buyer applicants was because the MHPO wanted to grab (steal) his MH.
That MH owner/seller filed a lawsuit against the MHP owner for “tortious interference with a contractual relationship”, and sued the MHPO for his resulting damages.
The WA Supreme Court found in his favor in the case of Elliot vs. Huang and busted the MHPO for some sizeable damages…
You might have a similar case against the MHPO for its wrongful interference with your selling your MH.
See
Re: Here’s the deal - Posted by Warren(CA)
Posted by Warren(CA) on March 13, 2006 at 22:33:13:
Here’s the deal:
Purchase for $5,000. Finance for $11,000 with 10% down. It’s a 1966 single wide in good condition, new water heater, new furnace and comes with refrig, and stove. I feel it would be a nice deal. It’s the Only! deal I came across in 2 years.
Warren
Re: Difficulty buying MH with owners approval. - Posted by Don Wilson (OK)
Posted by Don Wilson (OK) on March 13, 2006 at 21:34:29:
I would second what Jeff said and suggest re-reading DOWs. If you haven’t done that (read Deals on Wheels)then its like going skydiving without a parachute. If you live in CA anywhere near 29 palms you could get 27 MHs for free if you can make it happen. Read the post about it here. I once herd a wise man say “You can make excuses or you can make money…but you can’t do both”.
DW
Re: Difficulty buying MH with owners approval. - Posted by Bill in GA
Posted by Bill in GA on March 13, 2006 at 21:23:18:
For advice on doing lonnies in SoCal, search the archives for “lonnie whisler”. “Doc” has made some fairly tall dollars out there, doing lonnies (and parks).
Good hunting,
- Bill
Re: Difficulty buying MH with owners approval. - Posted by JeffB (MI)
Posted by JeffB (MI) on March 13, 2006 at 19:40:00:
“Is this deal too risky?”
Since the park owners don’t want to play ball, I’d pass on this deal. You’re going to be fighting an uphill battle to get any new tenants approved, and this only providing they do not demand you remove the home for going behind their back in the first place.
You also didn’t mention how much you’d be paying for the home, what it can sell for after fix-up, and you mentioned there is an underlying mortgage on the home.
You said “Where I live, California, it seems close to impossible to close a Lonnie deal. I would like to buy a MH park, but that might be a long time off if ever.”
Someone told me once, if you think you can’t do something, then you’re right!! Think positive. You’re trying to work an unfriendly park. Instead, why not seek out motivated sellers (not MH) in a park that is open to working with you. It makes things soooo much easier.
outstanding post- thanks! n/t - Posted by Marty (MO)
Posted by Marty (MO) on March 15, 2006 at 16:21:24:
n/t
another angle - Posted by Marty (MO)
Posted by Marty (MO) on March 13, 2006 at 23:36:40:
since you’re his only apparent chance to get anything for his home, partner up with the mh owner and move the home to a decent park. The guy that owns the home will lose it to the weasle park owner if he doesn’t find somewhere to move it… If you can find somewhere to move it, maybe the new park will pay for the move. Possibly leverage the deal a bit by having the mh owner carry the financing to you so you don’t have anything tied up in the deal.
If you can help this poor guy out of this trap, you’ll have found your Lonnie niche. I’m sure there’s others in this park being ripped off by the weasle park owner. Figure out how to solve their problems and you’ll make your money!
Good luck,
Marty
Re: another angle - Posted by Warren(CA)
Posted by Warren(CA) on March 14, 2006 at 04:21:13:
Thanks, Marty, you gave me a good idea. I think I know of a park just 30 minutes away that might take it and I feel they’ll be more willing to work with me.
I will need to see what the move cost will be and the price to hook it up. Hopefully not too much and subtract it from the sell price.
Warren
Re: another angle - Posted by Marty (MO)
Posted by Marty (MO) on March 14, 2006 at 23:32:09:
because of the new dynamics of this deal (increased work, risk, etc of having to move it) due to the park owner trying to torque this guy out of his home, I’d definitely want to renegotiate this deal. Maybe have the mh owner carry the entire (possibly reduced) note to you… He has a HUGE headache and it looks like you’re his only cure. I’m sure this guy will love to be your partner in screwing the park owner out of a little income. Every empty lot you create in this park reduces the appraisal value fo the park dramatically…
keep us posted!
Marty