Posted by SusanL.–FL on December 21, 1999 at 09:21:13:
Find out what she can afford above and beyond her monthly lot rent. Let’s say, for instance, she WAS paying you $150/month but can now only afford $50/month, rewrite the Note you are holding for her. It will take longer for you to get all of your money, but it will turn out to be a Win-Win situation for both of you.
As they say, ‘a bird in the hand…’
good luck!
MH Question - Posted by John Laine
Posted by John Laine on December 20, 1999 at 21:56:54:
I did my first “Lonnie” deal about 6 months ago and did pretty well. Purchased a 1972 for $3100.00 + $400.00 (repairs) and sold 5 days later for $8700.00, $500.00 down, $225.00 a month. But now I have a concern. The woman that I sold the home to is having a bit of financial trouble, I am not yet in the process of reposession and it may not get to that point but…
I had a great business relationship with the park manager,and she said it was no problem to keep the home on the lot (but nothing in writing) but she quit a month ago.
I spoke with the new manager and he informed me that any home older than 77 that is sold has to be pulled. So… If the new manager won’t budge, do I have any legal rights if it comes to this point or am I at the mercy of the park rules. If I get the home back from her, I won’t be “buying” it really, but I don’t know how the law works. I live in Arizona
This problem (challenge)has made me a little leary, any comments are very much appreciated.
Thanks,
John
Re: MH Question - Posted by Jacob
Posted by Jacob on December 29, 1999 at 09:50:33:
John,
A tough situation, no doubt about it. Yes, the park manager can require you to remove the unit if your lease is up. For example, one park we deal in has 30 day leases. So, at the end of the month your lease is considered expired and they can require you to move. Keep in mind that the park will not receive any rent if the lot is vacant. Also, a lease expires when the unit is sold.
To me, your best bet is to work with your buyer. YOu should be able to restructure the note to where she can afford it. Without preaching in any way, it is important to do your homework on a buyer before financing them. I mean no disrespect to you in any way, but you need to be leery of any potential buyer that want’s you to finance them. For many, they are buying a mh because they can’t qualify on a mortgage for a sfh. Therefore, they are going to be a credit risk to begin with. That is another reason for the high yields in this area. Not everyone is a risk, of course. You will find buyers with “A” credit. But the norm is usually otherwise.
One more piece of advice would be to attempt to work something out with the current park manager. Like many, he probably looks down on older mobile homes as junk. You need to help him see dollar signs when he looks at this unit, not junk. After all, every park manager is a human being and can be dealt with.
Good luck, and feel free to contact me if I can help in any way.
Jacob