Posted by Tony-VA/NC on October 28, 2003 at 05:08:37:
The purchase a sale agreement will control the details of the purchase. In the case of a Lonnie deal your are simply buying or selling the personal property (mobile home).
The owner financing will be detailed in the promissory note. How your note is secured will vary by state. Many states use a title like a car that is registered at the Division of Motor Vehicles.
As for lot rent, that is a personal choice for the individual investor. It is a good way to control the deal. It will help keep you from being blindsided by past due rent. It may even help you in the event of eviction (as they may be subleasing the lot from you instead of directly leasing the lot from the park).
Administratively it can become a pain. You pay the rent timely but your tenant does not.
If you have not read Lonnie’s two books (for sale here) you should. “Deals On Wheels and Making Money with Mobile Homes” will answer questions you don’t yet know you have, as well as provide sample documents.