Need Your Opinion Re: Park Owner - Posted by Chuck-NY

import · August 13, 2003, 1:29pm

Posted by Steve-WA on August 13, 2003 at 17:25:00:

That’s pretty shi++y, Don.

Chuck said: I am not on lease with the park, my tenants are.I am the MH owner.

You said: You are the parks tenant and need to keep your lot rent current no matter what.

You didn’t read what he said. Sounds like the buyer signs a lease agreement with the park, and a lease/option with Chuck for the MH only. I am still a little confused over what Chuck says he wants to eventually do, in collecting and distributing park rent; I sure wouldn’t want that - I think he is saying that just to make it easier to get them out for non payment of lot rent.

Why wouldn’t a default point in the prom note for nonpayment of park rent be good enough?

import · August 13, 2003, 1:29pm

Need Your Opinion Re: Park Owner - Posted by Chuck-NY

Posted by Chuck-NY on August 13, 2003 at 13:29:55:

I received an e-mail from the park owner today. She told me that starting next month a collection agency would be handling all the payments and the back lot rent. She also stated that I as the owner of these MHs would be responsible to pay the back lot rent. i.e. she wants me to bring everyones lot rent current.

Each of my tenants/lessees has a MHP contract that states that they are obligated to pay the lot rent. I have an understanding that once the park evicts the tenant for non payment of back lot rent then I would have to pay the park what is owed.

It sounds like the owner is trying to evade the eviction process (thus saving tons of $$).

I eventually want to pay the park for all the tenants lot rent and have my MH Net lease (or addendum) show the lot rent amount plus my MH lease payment as one lease payment.
Then I could evict if they don’t pay the full amount.
Right now I have no way of taking most of my tenants to court for non payment of lot rent.

I am waiting for a reply from my attorney, but I would appreciate your opinions & ideas in this matter.

import · August 14, 2003, 2:28pm

Re: Need Your Opinion Re: Park Owner - Posted by Don Dion

Posted by Don Dion on August 14, 2003 at 14:28:45:

Wow you guys are a tough crowd. One of you wanted my post removed for telling the truth. Lets look at this investor’s post a little closer. I use the word investor even though he uses other peoples money and resources to obtain his profit.

He own’s several mobile homes in a park and pays no rent to have his property in the park. He then puts in low grade tennants and stands back only collecting his monthly rent from the tennant as the park owner is stiffed.

Oh yes the offer to pay the lot rent once the tennant is evicted by the park owner. What a nice investor he is. All the park owner has to do is higher and attorney, go to court on his own time, get the police to deliver the eviction and higher labor’s to remove the tennant. Oh missed one thing pay court costs. Just to get the rent back so the investor can put in more questionable tennants.
Maybe I was a little harsh what do you think???

import · August 13, 2003, 2:05pm

Re: Need Your Opinion Re: Park Owner - Posted by Steve-WA

Posted by Steve-WA on August 13, 2003 at 14:05:03:

It is not clear to me what the actual lease situation is. Are you on lease, and subleasing to tenants? Are they on park lease?

Back space rent is the responsibility of the tenant. If you are on the park’s space lease, then you are the tenant. If the buyer is on the lease, they are the tenant. If the park wants to hold you responsible, then (in WA) the park must notify me by certified mail that I am now responsible for lot rent from the point at which I receive the certified mail. Not back rent. And that happens concurrent with me taking the MH back. Cause if I haven’t yet, I sure as he// will now!

If you are selling on a note, is failure to pay space rent a default point on the note? Should be. Then, they are in default, and you can demand full payment, or repossess, and then evict.

Or bribe them to leave (my preference)

Also, Chuck, check your email - I sent you something.

import · August 14, 2003, 3:11pm

harsh? nah. - Posted by Steve-WA

Posted by Steve-WA on August 14, 2003 at 15:11:04:

just a little in the dark

?I use the word investor even though he uses other peoples money and resources to obtain his profit.?

Oh, is THAT what OPM stands for!? You know, I?ve been reading about investing for YEARS, and EVERYBODY stresses how important to success the use of OPM is! Other People?s Money! Hmm. Guess those authors didn?t talk to you first about how that?s not really investing, now did they, DD?

?He then puts in low grade tennants?

Uh, last I checked, a PM screens all potential park residents. And if the park owner is being stiffed, then we know who is training whom, don?t we?

? . . .offer to pay the lot rent once the tennant is evicted by the park owner.?

The resident (?tennant? sic) is the person responsible for lot rent. Once the resident is gone and the MH is vacant, it is just like an empty lot to the park ? they can find a new resident, or let the OPM ?investor? do his job, which helps the park.

?higher and attorney? and ?higher labor’s?

Huh?

?. . . so the investor can put in more questionable tennants?

see above

I know this seems backlash-y (MY word; if you can make them up, I can too), and I do not mean to offend, but it appears, again, that you really do not understand this service we provide, albeit for profit.

In seeking out and reading your contributions on the archives, it appears that you?re exclusively in financing, and the clues point to mortgage broker. How does that qualify you to criticize an investor? Or to even understand the creative nature of MH dealing, Lonnie-style?

Your recent posts seem very caustic, and, well, not just a little in the dark.

This is not meant as a personal attack, but it is meant to stop one.

import · August 14, 2003, 2:48pm

Re: Need Your Opinion Re: Park Owner - Posted by Larry-IA

Posted by Larry-IA on August 14, 2003 at 14:48:43:

What has nice got to do with legalities? While I treat my tenants/customers with respect and honest dealings, I am in business to make money, not friends. How about you?

import · August 13, 2003, 2:40pm

Ernest Tew Please Read - Posted by Chuck-NY

Posted by Chuck-NY on August 13, 2003 at 14:40:11:

Thanks Steve. I forwarded your attachment to my attorney. The contract I use is Ernest Tew’s Net Lease & Option to Purchase. The Net Lease agreement (Ernest correct me if I’m wrong)states that if they don’t pay the lot rent then they are in default & I can take back the MH. I’m a little confused as to repossession of the MH unless it is somewhere implied that repossession is subject to state and/or local laws.

There is a difference in NY law between a park eviction for non payment of (lot) rent & an eviction for non payment of a MH lease. If I go to court to get possession of the MH I don’t want it to look like I am evicting based on unpaid lot rent…it would take at least 3 times the amount of time required to evict. I feel sorry for parks around here who have to wait so long just to get a Warrant of Eviction.

To answer your question:
I am not on lease with the park, my tenants are.I am the MH owner.

Thanks again for your help Steve.

import · August 17, 2003, 11:40am

Re: Ernest Tew Please Read - Posted by Ernest Tew

Posted by Ernest Tew on August 17, 2003 at 11:40:53:

There are variations of how it can be done, as well as variations in state laws. The Net Lease form that we use states that a default in the lot rent results in a default in the Net Lease. State laws will sometimes take precident over leases and other contracts. That is, some contract provisions may not be enforceable in court because the judge has the final word. But, if the provision is clearly a part of the agreement, the judge will be more inclined to enforce it.

In practice, either the park manager or the mobile home owner (Lessor) will be able to evict a resident in the event of a default. If the park manager is unable to collect from the resident, the investor (title holder) will usually be responsible.

Anyone who deals in mobile homes should have an understanding with the park manager and become familiar with the laws of their state and how they are usually enforced by the local authorities.

import · August 13, 2003, 5:13pm

Re: Ernest Tew Please Read - Posted by Don Dion

Posted by Don Dion on August 13, 2003 at 17:13:04:

Yes your wrong. Your lease purchase agreement is between you and your buyer!! You are the parks tenant and need to keep your lot rent current no matter what. With tenants like you it’s no wonder most park owners dont want anything to do with investor units.

import · August 13, 2003, 9:45pm

Times are changing - Posted by Karl (Oh)

Posted by Karl (Oh) on August 13, 2003 at 21:45:08:

When I started four years ago I got some resistance from park owners about doing deals in their parks. Today its a different story. Park vacancies are way up in my area, and park owners are looking for good solutions. Right now is a terrific time to get into this business. Its difficult for buyers to get bank financing, and the parks need help more than ever to keep their lots full.

I disagree that most park owners don’t welcome investor units. Practically every park I talk to is now open to the idea, if it keeps homes in their parks.

Karl Kleiner

import · August 13, 2003, 7:05pm

PLEASE DELETE DON’S POST - Posted by Tony-VA/NC

Posted by Tony-VA/NC on August 13, 2003 at 19:05:17:

Don,

Your impish attack on Chuck was entirely uncalled for and off base. He is a seasoned investor who has done a great deal for each of the parks he has worked in. He has solved problems, made the parks money and held true to his word.

Grow up Don and take control of your comments. This is not grade school.

Tony