Re: Some advice please… - Posted by Ernest Tew
Posted by Ernest Tew on October 05, 2003 at 05:15:36:
Dusty, if after checking into your local market and looking at a few comparable sales, you conclude that the price is right and the payments aren’t too high, you might offer to enter into a net lease with an option to buy.
The lease payments could consist of making the payments on his loan and paying all expenses involved (maintenance, insurance, taxes etc.).
Your ‘down payment’ could be treated as option money consideration and the price when exercised could be the loan balance at that time.
You could then sub-lease the home and land (for a higher monthly payment) and sell an option to buy, charging a larger amount for the option.
We sometimes enter into similar transactions when a person in our park wants to leave but we would like to keep the home in the park.
However, it is important to protect your interests in such transactions by having the right forms completed and signed. You will need a good Net Lease form. The Option Agreement (for the land) should be recorded on the public records. A Deed to the land should be signed by the owner and held in escrow. And, a Power of Attorney authorizing you to sign anything related to the mobile home should be signed by the owner.
If you aren’t experienced in these matters, you should have an attorney handle it for you–at least the first time.
To save some money, I could provide you with the lease and option forms that we’ve used for many years. All the necessary forms are included in our manual, “How To Get Rich Helping Others.”