MH - Quailfied buyers? - Posted by Steve

Posted by hkCA on May 09, 1999 at 14:49:00:

Hi Dirk,

Enjoy your posts about mobiles. Guess you’ve become the resident MH expert on the board, no doubt about it. Here’s a thought I’d like your feedback on, if you would.

As the owner of a home in a park, suppose you were to approach the PM and tell him with his permission you will be paying the lot rent personally, even after you sell the home, as long as that buyer is the owner. (Maybe you could even retain a 1% interest in the home if necessary). You sublease the land and collect the rent as well as the loan payment from the buyer. Your rental agreement with the buyer is under the same terms as the park’s terms. So a violation of park terms would also be a violation of your terms with the buyer.

The advantages I see in this agreement are such:

  1. The PM knows you and feels more comfortable with dealing directly with you and is more assured the rent will be paid.

  2. You are assured the lot rent is paid. If it isn’t, then you can act promptly, rather than finding out you’re on the hook for several months back rent later on.

Since I don’t know enough about mobiles, I don’t know if there are real advantages to this, whether it’s even legal, allowable, or whether the disadvantages outweigh the advantages. But your feedback would be appreciated.


MH - Quailfied buyers? - Posted by Steve

Posted by Steve on May 03, 1999 at 12:36:55:

I was just thinking? When doing Lonnie type deals
How hard is it to find quailfied buyers/lot renters.
I’m sure the park manager is fairly picky when doing credit checks
on a potential lot renter. Should I be doing my own credit check too?
Or is this redundant? Just because I’m willing to finance the deal
does not mean the park manager is going to rent to just anyone.

Any Ideas on this would be very helpful.


Re: MH - Quailfied buyers? - Posted by Steve

Posted by Steve on May 04, 1999 at 09:12:00:

Thanks for all the feedback!


Qualified buyers - Posted by Dirk Roach

Posted by Dirk Roach on May 03, 1999 at 17:29:52:

Hi Steve,
David A, is right that Parks vary greatly.
I also do the same thing that David does in getting a copy of the potential buyer’s credit from the park. I personally use a “pre-qualification” form (which I wrote up myself). There is a paragraph in that for which gives me permission to obtain a copy of the Potential buyer’s credit. Just want to cover myself you know.
Now a neat slant on your question is a technique, which I have used several times. When the park turned down a buyer whom I liked and had made the decision that I was comfortable in financing him. I played the ace in my hand.
I informed the park manager that I felt strongly about this particular buyer and that I would be willing to guarantee the space rent for the duration of the buyers note, while he was living in the home. Now what the park Manager didn’t realize is that I was on the hook to do this anyway as I am the lien holder. However by putting it into words it swayed the PM and needless-to-say rented the guy the space.
The other positive to this is that if this guy doesn’t pay his space rent the PM is on the phone to me straight away.
I won’t get hit at once for two or three months back space rent.
Hope this helps,

Re: MH - Quailfied buyers? - Posted by David Alexander

Posted by David Alexander on May 03, 1999 at 14:44:11:

It verys from park to park. I have the PM give me a copy of the buyers credit report to verify everything. Generally they are pretty picky.

David Alexander