Posted by Steve on May 25, 2000 at 23:27:39:
Hi Dan,
I’m in Lake Oswego, Oregon. I may have some ideas…wanna talk? Email your phone #, I’ll call on my nickel, or feel free to call me. Thanks.
Steve
I know its a doublewide, but - Posted by DanM(OR)
Posted by DanM(OR) on May 25, 2000 at 10:36:15:
there are ways to make this work I am sure.
I have mainly been wokring with homes and notes the last couple of years, but a deal just fell into my lap recently regarding a MH. If it were a single family home I would just buy it subject-to the loan and get a deed from the owner.
Here’s the situation:
Its a 1999 manufactured home. 3bed / 1 or 2 bath 1100 sqft. The owner just wants $2000 and for someone to take over the payments. He is open to a subject-to deal (I explained it to him) or a Lease/Option. This home is in a park with all owner-occupied mfr homes. In Oregon a mfr home in a park is not considered real estate so I assume he doesn’t have the title. His loan is through Conseco, which I am sure you are all familiar with. He is paying $315/month and $215 lot rent.
I have not ever done a Mobile Home deal before and do not have your books yet Lonnie. I am a MH wannabe though and planned on buying MHs soon with some of the extra cash generated from my other deals. Buying your books is in my plans, I just haven’t reached that stage yet.
How do you do a Lease / Option if you can’t get the owner to deliver a title into escrow somewhere. Can you just Lease/Option it and record a memorandum of agreement with the DMV. Is this all explained in your books Lonnie?
I have all of Bronchicks stuff, but it doiesn’t cover Mobile Homes.
Thanks for all your help. I appreciate it.
Dan Matejsek
P.S. I already have a buyer who has $2000 in cash and would pay me $100 cashflow on the deal.
Re: I know its a doublewide, but - Posted by Lonnie
Posted by Lonnie on May 26, 2000 at 07:08:19:
Hi Dan,
I don’t do L/O’s with MH’s, but I’ll explain how my friend Monte does. He has an agreement with the MH owner/seller to assign his interest in the MH over to him. The seller signs a POA (power of attorney), and notifies the lender (Conseco) to forward title to Monte when the lien is paid off.
Their agreement says that Monte can sub-let the MH to his tenant/buyer. Monte keeps any profit spread between the payments to Conseco and what he receives from his T/B. But if there is a vacant period, Monte has to pay both lot rent and loan payment.
Monte’s minimum profit spread is $100 on each deal, meaning that he must realize at least $100 each month between what he collects and what he pays out. (At last count, Monte has over 50 L/O deals).
My main concern in this arrangement, is being sure you get the title at time of pay-off. If it’s a major lender, and the paper-work is done properly, it shouldn’t be a problem. Just wanted to make you aware of this.
In your case, unless the buyer made a very substantial down payment, I doubt he has any equity in this home. If that’s the case, I wouldn’t agree to give him any cash, or very little at most. Taking the problem off his shoulders should be enough incentive.
And last. Make sure the park manager won’t give you a problem doing this. You don’t have to explain everything, but have a good relationship with him/her before agreeing to it.
Good luck,
Lonnie
DOW has a section on how I L/O’s some of my houses. If I were to L/O a MH, I would do the same…