Insurance - Posted by Randy (AL)

import · January 23, 2001, 9:06pm

Posted by Randy (AL) on January 24, 2001 at 17:57:33:

Thanks for the help, I’m sure a lot more questions will be answered by the books.

Opps… You are correct, should have been owners, I don’t want to be called out to fix a A/C for a trailer…

import · January 23, 2001, 9:06pm

Insurance - Posted by Randy (AL)

Posted by Randy (AL) on January 23, 2001 at 22:06:28:

well, I have orderd the two books from Lonnie, and while I wait for them to arrive and learn more I have started looking for MH’s. I have already found a few, and has started my wheels thinking.

Just as an example, I found a MH for $3000 negotiable, on a local park. Lot rent is $75 and the MH is clear of loans. The MH has washer,dryer, stve some furnishings couch chair, 220v airconditioner.

The current owner has already recieved permission from the park owner to rent the trailer, as long as tenants are decent (no park qualifing)

So lets say I come up with an offer (wish I new enough to make one now, sounds good).

I don’t have the make but it is a 12x60MH, 2BR, 1 1/2 bath. So I purchase cheap, sell and cary a note for about $6000(guessing as of now) for about 2-3 years.

Sounds good. Looks like a decent return. But how do I protect myself should the tenants move in and after a month have an accident and burn the place down.(I am assuming nobody is injured)

Should I require the buyer have insurance? And if so, how is that inforced?

Just wanting to protect my investment…-

Thanks,
Randy

import · January 25, 2001, 5:31pm

Re: Insurance - Posted by Bill

Posted by Bill on January 25, 2001 at 18:31:26:

I have just finished one of his books(Deals on Wheels) and am halfway through the second book (Making Money with mhs). Be sure that the mh you are looking at will sell for $6000.
Good luck
Bill

import · January 24, 2001, 6:57am

Re: Insurance - Posted by Mike

Posted by Mike on January 24, 2001 at 07:57:51:

Randy

You can require the buyer to buy insurance, showing you proof of coverage for one year before they move in. You will also require him to name “you” as the “loss payee” on the insurance policy.

import · January 24, 2001, 5:16am

Re: Insurance - Posted by Don(Fl)

Posted by Don(Fl) on January 24, 2001 at 06:16:52:

As you will read in Lonnie’s books, always require the buyer to have insurance. If the buyer doesn’t produce a binder at closing, charge for it yourself. Make sure the policy lists you as the loss/payee until the buyers pay you in full.

Also your buyers are “owners” not “tenants” and that is a beautiful thing when the a/c breaks down.

Good Luck,

Don

import · January 25, 2001, 6:08pm

Re: Insurance - Posted by Randy (AL)

Posted by Randy (AL) on January 25, 2001 at 19:08:46:

The $6000 was just an estimate. I agree, before I make any commitment I will have to do some leg work getting a sale price (or exit strategy)

Thanks

import · January 24, 2001, 4:54pm

Re: Insurance - Posted by Randy (AL)

Posted by Randy (AL) on January 24, 2001 at 17:54:28:

Thanks for the help…