Posted by Anne_ND on August 12, 2008 at 06:50:54:
Tony raises a good point about construction people having some specific issues- be certain to get a limit on number of people who live there, complete criminal records and check on their ability to pay.
For me the issues of too many people moving in, partying, etc., has come with very young tenants rather than any specific group of employee.
Anne
LD Help - Posted by Glenn
Posted by Glenn on August 12, 2008 at 05:29:51:
We have been doing LD’s since February and have done 8 so far. I have a buyer who wants to get into one of our homes for a short time (10 months) while he is working on a construction site. The park does not allow rentals, or lease options. Does anyone have any other creative ideas to make this a win/win for all involved? Thanks in advance.
Glenn
Re: LD Help - Posted by Glenn
Posted by Glenn on August 12, 2008 at 12:58:13:
Thank you Tony and Anne for the advice. I think I will try the straight cash deal first and if not then structure a note per Anne’s suggestions. Thanks again.
Glenn
Re: LD Help - Posted by Anne_ND
Posted by Anne_ND on August 12, 2008 at 06:17:23:
Glenn,
There’s an easy solution to this, one I have used often with students, military or others who think/plan on moving sooner than the length of term of their note.
I used the call it the “Guaranteed Buy-Back Program”, but I’ve since learned that it’s better never to guarantee anything to payors in writing, in case of legal issues/misunderstandings down the road.
It consists of selling them the MH on a note, just like a Lonnie deal. When they are ready to move, they give 30 or 60 days notice (your choice), leave the place in good condition, allow you to show during their last weeks there and then you take the MH back, they leave without any further responsibilities for lot rent, utilities, etc.
I explain to them that they are the owners during the time they live there, but because of my pricing strategy, they are paying about the same, or slightly less than what they’d pay for renting a comparable apartment.
Depending on market conditions, you can ask for a little more up front, and then give them some amount back if they leave the place in good condition.
For instance, I used to offer the GBBP and ask payors to give me an extra $250 down payment (for a total of $1250), and then an extra $25/month (which went towards principal). I’d then return half of the down payment when they moved out.
This arrangement satisfies the park’s rules of owners-only, lets you help a buyer who might go elsewhere, and gives the buyer peace of mind that they can move on when it’s time to go. As long as their combined lot/MH payment is about what rent would have been, they should be fine with this.
good luck,
Anne
Re: LD Help - Posted by Tony Colella
Posted by Tony Colella on August 12, 2008 at 06:13:47:
While I have not done a Lonnie deal in several years, I go get quite a few calls like this for my rentals.
Even for landlords, tenants with short term rental mentality are typically poor candidates. They have little to lose and do not treat the property like a home but rather a motel room.
There are no doubt exceptions to this but in general this is not they type of tenant I would consider nor would I begin to consider them for a Lonnie deal. Your mileage may vary but I would let them know that we only sell homes and the park does not allow us to rent them.
If this guy wants to pay all cash for the home then that would be an option. Let them deal with the park then.
If this prospect is a construction foreman or owner who has to put up a number of his workers for a 10 month period, a cash buy and paying just lot rent would likely be a money maker for the company. Motel rooms get expensive over that period of time and the ability for his workers to cook instead of eat out is a savings as well. You might take that approach if you pitch for an all cash sale.
Otherwise I would personally let them move on but again, your mileage may vary.
Tony