Posted by Ernest Tew on June 01, 2000 at 08:42:22:
Yes, you would have to evict your “buyer” because they are legally a tenant. Whether it would take longer would depend upon your local laws. Any time an occupant fails to move when given notice to do so, could result in legal action–whether treated as a renter or as an owner.
sales conract - Posted by Bill n Callahan
Posted by Bill n Callahan on May 29, 2000 at 20:43:59:
when selling a mobile home what kind of contract do you use?If in most places they’re considerd personal property.
Re: sales conract - Posted by Ernest Tew
Posted by Ernest Tew on May 30, 2000 at 06:16:23:
Like any other “vehicle,” when selling a mobile home you can convey title by simply signing in the appropriate place on the title and giving it to the buyer. They buyer should take it to the Department of Motor Vehicles (if that is the agency that handles titles in your state) and ask them to transfer title.
If you need an agreement, you can use a simple Bill Of Sale form.
Re: sales conract - Posted by Charles Bevel
Posted by Charles Bevel on May 30, 2000 at 22:06:24:
Question: Is that generally the same for doublewides?
Re: sales conract - Posted by Bill n Callahan
Posted by Bill n Callahan on May 30, 2000 at 07:47:34:
Thank you for your reply Ernest. Maybe I should have ask -When selling on terms, what type of long term agreement should I use? Would a standard ‘Bill of Sale’ do the job? thanks for any and all respose.
Re: sales conract - Posted by Ernest Tew
Posted by Ernest Tew on May 30, 2000 at 18:37:06:
When financing a mobile home, we have found either a “Lease-Purchase” agreement or a Net Lease with an Option To Buy (two separate documents) works best.
When properly worded, you will not be required to pay taxes on the gain until the option is exercised. And, the “buyer” won’t have to pay a sales tax until the option is exercised. As a result, all the cash the buyer pays will apply toward the purchase price and you, as seller, don’t have to share the available cash with the taxing authorities.
If you need a copy of these forms, please contact me at (352) 475-1800 or by e-mail.
Re: sales conract - Posted by bwhite-tn
Posted by bwhite-tn on May 30, 2000 at 20:41:25:
Ernest,
I have the same delimma as Rick-MI.
Any pointers would be greatly appreciated.
i read back thru my copy of " Getting Rich Helping
Others" and found no remedy for this.
Regards.
Bobby
Re: sales conract - Posted by Rick-MI
Posted by Rick-MI on May 30, 2000 at 18:55:44:
I am interested in leasing with option rather than selling on a note like Lonnie does, but the PM’s in my area will not allow anyone to rent mobile homes in their parks. They have to be owner occupied. Do you know any way around this or will I just have to live with it?
I lease/ option single family homes and have begun to have some success at that and would like to do the same with MHs. I know there are MHs out there that won’t sell( or can’t sell) at wholesale prices, but would be profitable on a lease purchse. Any suggestions would be most appreciated.
Rick-MI
Re: sales conract - Posted by Ernest Tew
Posted by Ernest Tew on May 31, 2000 at 11:26:00:
You may need to convince the park managers that your transactions are really sales, if that is the case. We explain to park managers that our “sales” are set up as a lease and option for tax purposes. Just as in a sale, our occupants are obligated to make a down payment (option money) and monthly payments for the agreed term. Emphasize that, when all the provisions in the lease and option agreements are taken into account, the occupants have the same rights and responsibilities as any other buyer.
With L/O’s - Eviction vs repossesion? - Posted by Debra G.-VA
Posted by Debra G.-VA on May 31, 2000 at 13:01:54:
Financially and tax-wise, the lease option offers a lot of benefits. I hope to convince my local park manager to allow me to use L/O as I develop a better reputation with him. However, if the “buyers” default, don’t you have to evict them, instead of repossessing the home? And doesn’t that take a lot longer and more effort than repossessing?