Posted by Dirk Roach on May 08, 1999 at 23:24:58:
The easiest way that I have found is the Classic Lonnie method in dealing with older, used mobile homes, which are positioned in an existing park and may remain there after I (or you) buy it.
I imagine your thinking of Lease Optioning a mobile home because you worried about getting your prospective buyer financing? You are right you won’t be able to get anyone (regardless of credit) financing which is secured by an older, used mobile home, which isn’t attached to any land (it’s in a park and rents the lot where it’s at).
However that the beauty of it. You become the bank. You finance the buyer yourself.
The reason a L/O will not work in most parks is that most parks WILL NOT allow some outside entity to rent out the mobile home. The park has found that it quickly loses control if it were to do this.
However in a park there is really no need at all to L/O at all, if you execute a Lonnie Situation.
If mobiles homes hold an interest for as an investment vehicle, check out Lonnie Scruggs “Deals on Wheels”. This is an inexpensive little book, which can open up your eyes to an interesting niche market.
Good Luck and keep us posted on your upcoming success,