Lonnie Deals - Posted by tloner


#1

Posted by J.P. Vaughan on January 14, 1999 at 10:07:18:

My answer is for classic “Lonnie Deals,” which are MHs
situated in MH parks. If the MH is attached to land, it
is probably real estate.


#2

Lonnie Deals - Posted by tloner

Posted by tloner on January 14, 1999 at 07:12:20:

In doing a lonnie deal consider this hypothetical situation:

I sell a mobile home to a buyer for $750 down and $225/month for 36 months. Would it make more sense to set this up as an installment sale or could I set it up as a 35 month lease at $225 a month with an option to purchase the mobile home for $225 at the end of the 35 month lease. The $750 dollars being option consideration. I am thinking that it would be easier to evict a non-payer than to forclose. Is this true? Is this legal?

Tom


#3

Re: Lonnie Deals - Posted by Robert McNeely

Posted by Robert McNeely on January 14, 1999 at 20:02:45:

If you lease the mobile home, I see two potential problem areas. Most parks (at least in my area) require the person living in the home to be the owner. Secondly would you rather be the bank, or the landlord with the ulitmate responsibility to maintain the unit.


#4

Re: Also Check with IRS - Posted by Jim Simons

Posted by Jim Simons on January 14, 1999 at 14:59:15:

While I was reading the details of your L/O ideas for Lonnies, I thought of something you might want to check on.

I read somewhere that in order to do the kind of deal you’re talking about you have to collect at least 10% of the selling price at the end - when the person opts to buy. I can’t remember exactly remember the details but I think it had something to do with satisfing the IRS requirements for installment sales.


#5

Re: Lonnie Deals - Posted by John (KS)

Posted by John (KS) on January 14, 1999 at 09:06:11:

I just spoke with my lawyer last week about this exact subject. You are right, it is easier, faster, and cheaper to evict a non-paying tenant that to foreclose. He advised me to use a lease type stratagy. It probably varies from state to state though. Most lawyers will probably answer this over the phone if they know that you are a potential future client.


#6

Re: Lonnie Deals - Posted by J.P. Vaughan

Posted by J.P. Vaughan on January 14, 1999 at 10:04:30:

Since mobile homes are PERSONAL property, and not real
estate, you do not foreclose. You “repossess” or
"replevy" to get back the MH for nonpayment.

In most states this is much easier than a tenant eviction,
especially in states that have favorable tenant laws.

JP Vaughan