NEED help of a lonnie expert - Posted by Erik

Real Estate Investing Mobile Homes & Mobile Home Parks
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Posted by Steve W (WA) on March 04, 2002 at 08:23:52:

(a) A lot of what you seek depends on your state/county/proximity to gov’t offices. As such, the opinion I give is not to be construed as advice, or recommended course of action. Simply my opinion.

(b) Have you read DOW? I realize that if not, it ain’t gonna help on this one, but it does give the basics that a quick review might help.

(c) What is the age of the home? Is it even worth $4K? I suppose that if it is worth that to you, then it is worth it. Somewhere on this board I read a good rule of thumb for what to pay:

60s? $1K
70s? $2K
80s? $3K
90s? $4K

(d) Try this. Get their VIN # and/or property tax account number. One should cross reference the other with the Treasurer and/or Assessor. Via DMV, see what shape the title is in - my state will only verify yes or no the names on the title - they will not read it to me, I have to tell them and they tell me if I’m right. Any liens? Any taxes owed?

(e) What about the park manager? Is this MH even in a park? You did not say. If on land, then it will be more involved, but that’s ok - that’s why God made FedEx.
Is there back rent due? Is the home in good shape? Can it stay in the park? Have you even seen the home? You didn’t say.

(f) If in a park, title is in fact clear, and you have seen/inspected the place and talked to the PM and everything is okey-dokey, then:

  1. Give them money for keys and signed title. Shake their hands; you’re done with them.
  2. Go see your Treasurer and pay sales/excise tax as required.
  3. Go to DMV with signed title and money to pay title transfer fee. You probably have a couple of weeks before this is necessary (check with DMV), so if you can get a buyer first, then just pay for a double title transfer when you would be changing title for them (You’ll have to give the Treasurer their cut again).

If you feel good about it, do it. If you do not, then do not - there are many deals coming your way, and you do not have to buy - they have to sell. Remember - at worst, you paid $4000 for some valuable lessons, that will enable you to profit more greatly in the future.

(g) Why didn’t you leave your phone number?

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NEED help of a lonnie expert - Posted by Erik

Posted by Erik on March 04, 2002 at 01:36:54:

A couple called me this evening… they are transferred out of state and are leaving tomorrow night! They need to dump their MH. It is a 14x70 appraised at $12,500. Over the phone I got them to come down to $4000. I am going to meet with them tomorrow. I need someone to talk me through this. Any lonnie experts out there I can call? I have only done L/O’s and Sub2 deals. Don’t know how to do MH’s, contracts, etc. Would someone consider leaving me a phone #? Questions: If they accept my all cash offer, what do I do? They own the MH free and clear. Do I just write them a check and they sign a warranty deed to me? Any contracts need to be signes? They said there are no liens on the title… should I check it before I give them any cash? They are leaving tomorrow night! If there is a deal here, I would like to get something done before they leave. Thanks

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Re: NEED help of a lonnie expert - Posted by Jacque - WA

Posted by Jacque - WA on March 04, 2002 at 12:12:19:

Hi Erick,

First thing you should do is talk with the Park Manager to verify the lot rent is current as well as finding out if they will let you play ball in this park. If all is well then proceed with the deal.

If I have the time I will call the Tax Assessors office here to check on titles, however, the title itself will also tell you if it is owned free and clear. Have them sign the title over to you.

I also have a Purchase and Sales Agreement ? you can use Lonnie?s and/or Ernest Tew?s forms.

I would have them sign a power of attorney so that you can handle anything that comes up in this transaction without having to chase down out of state owners.

However, you may want to check on your states laws. Each state is different on how they title mobile homes. Some states will use DMV titles and others use these things called U.C.C. Forms.

Legally since you will be buying the home, your name (or company name) should go on the title and be registered in your name.

Most states charge a sales tax, however, I understand that not all states do ? you may want to check this out as well.

When selling the home you will sell it to your buyer, pay sales tax again (if applicable). The title will be reissued in your buyers name with you as the lien holder. Your name will appear on the title as lien holder.

You keep possession of the title until the loan is paid off. When it is paid off you sign that title, acknowledging that the lien has been released and give your buyer the title.

Jacque - WA