Property Manager Says No To Seller Financing - Posted by Scott (UT)

import · January 15, 2001, 10:49pm

Posted by DougO(NM) on January 18, 2001 at 23:46:25:

I realize I didn?t explain that too well, but then I didn?t want to get into a long explanation. I did not mean to imply that we should start a lending company, per se. My comment ?it can be done if you think about it? was made to solicit inquiries from those that really want to know what I am talking about. The idea is to make the park manager happy. First of all, I don?t know how in the world a park manger, or owner for that matter, (I am both) can make a rule against seller financing and require only institutional financing. Anyway, these folks are. So Party A wants to sell the home You (your company) are in the business of buying and selling MH?s, not the exclusive finance them. So?. Your company buys the home from party A and sells it to party B, and if it has to it finances the purchase. It is NOT making a purchase money loan, it IS selling the home using a Retail Installment Sale Agreement. There is no requirement to be licensed as a “lender”(at least in my state) for a vender to sell their product on terms. This is not to say that a dealers license may be required to sell the HOME in the first place.(It is in my state and I am a licensed dealer) Anyway, now it?s not Party A ?owner financing? it?s ?First Amalgamated Inc.? or whatever as the lien holder on the title. Party A sold home, you (company) bought , sold and financed home to Party B, you made your profit and park manger is happy cause a ?Corporate Lender? is involved. I do this everyday. It works for me. I researched it, my attorney reviewed it, revised it, and, blessed it. ; )The park manager doesnt really need to know EVERY little detail, as long as their criteria is met and you don’t lie, everyone gets what they want.

Thanks for your input

import · January 15, 2001, 10:49pm

Property Manager Says No To Seller Financing - Posted by Scott (UT)

Posted by Scott (UT) on January 15, 2001 at 23:49:48:

I just started and I am getting resistance from PMs. I had a realtor call me with a guy that wanted to buy a MH but didn’t get qualified with the lender. My realtor thought that he might be a good canidate for a L/P deal. I talked to the Park and they would not let him L/P in their Park. They do not allow any RTOs or LPs. The seller would do it if the Park allowed it. The tenant/buyer could meet the requirements of the Park but they just don’t allow renters or seller financing.

Have any of you experienced this and what can I do. The Park up the street from me has 31 vacant homes I could help them with and you guessed it, they will not allow any rents or seller type financing either.???

Help!
Scott

import · January 16, 2001, 9:23pm

Re: Property Manager Says No To Seller Financing - Posted by Roger - TX

Posted by Roger - TX on January 16, 2001 at 22:23:11:

Almost all MHs are financed one way or another. You are providing a different type of financing, you are acting like a bank, lending the buyer the money to buy their home. If the PM objects move on to another park. But keep in touch and maybe when they know you better they may change their mind.

import · January 16, 2001, 3:13am

It happens - Posted by Tony-VA

Posted by Tony-VA on January 16, 2001 at 04:13:33:

It is not unusual for park managers to resist. Many times it is a matter of how you have presented your business. If you just called them on the phone, I can guarantee you will get turned down.

Establishing rapport first with the PM is essential. They must have a level of trust before they will be open to your business ideas. Much of your success comes from park managers. That is why it is so important to establish a good working relationship with them.

We have all encountered park managers and owners who are unwilling to work with people, even at their own expense. Several investors have posted recently with the same frustrations you have just experienced. Park managers turned them down or denied their buyers, despite a huge number of vacancies. These investors simply did their best to establish a rapport with the PM. When they could not, they moved on to other parks and found success.

I suggest you work on smoothing your presentation, in person, with the park managers. It can take work at times. If it doesn’t work, go on to the next park. Sometimes it takes you getting established with another park before this park will see the error in their ways.

When explaining the deals, don’t use terms like L/P or Seller Finance. Instead try explaining that you like the park and wonder if their are any homes for sale. Find out what the parks require for application and then leave. Take a look around the park. See what you can find. Then stop in a couple days later and ask some more ice breaking type questions. If you get a good feel for the PM, then explain that you work for a company that buys older mobile homes. Your company works closely with park managers to keep lot rents current by buying homes for cash and then having the park approve the new buyers. Your company arranges for the financing.

Note. I don’t know why the park would reject owner financing with you listed on the title as the lienholder. This gives them 2 people to go after if lot rent is not paid. Perhaps this needs to be politely explained to the PM.

Explain the benefits of working with your company because you are listed as the lienholder, the park need only call you when the lot rent is delinquent and you will work closely with the park to make certain the lot rent gets paid. If not, you will repossess the home and find new buyers for the park to consider.

Like anything, it is how you present it. If you come across as an unknow third party looking to wheel in deal in their park, you will be rejected. If you present the benefits you can provide the park by assisting them in retaining the older homes and lot rent, you stand a better chance.

Best Wishes,

Tony-VA

import · January 17, 2001, 9:06pm

Re: Property Manager Says No To Seller Financing - Posted by DougO(NM)

Posted by DougO(NM) on January 17, 2001 at 22:06:34:

Become a Lender! Form a Corp or a LLC and name it something Offical Sounding like “Equity Capital Holdings” or such. Now its the lender and there is no “seller financing” Buy the home yourself, sell it to the buyer. THis can be worked out if you sit and think about it

import · January 18, 2001, 2:24pm

Re: It happens - Posted by Michael

Posted by Michael on January 18, 2001 at 15:24:22:

And you’re even better than a bank because you can assist the PM in upholding the standards of the park by ensuring your purchaser adheres to their rules. Banks won’t do that for them.