Posted by Justin on February 16, 2001 at 10:42:16:
What do you think about collecting the lot rent at a higher rate and passing it on to the mobil home park for a small profit? I’m not suggesting that anyone should do this, but I am curious to see what you think.
Who collects space Rent? - Posted by Todd
Posted by Todd on February 15, 2001 at 23:36:38:
Question. I have my first Lonnie deal closing tomorrow and the PM has give me the option of paying him directly for the space rent and me collecting from the new buyer, or him collecting space rent from my buyer. Ultimately, I know I’m responsible, what would the pro’s do? Thanks in advanvce.
Ultimately, you shouldn’t be - Posted by Blane (MI)
Posted by Blane (MI) on February 16, 2001 at 08:36:21:
Todd,
Why should you take on someone else’s problem? Let the buyer pay the park directly, just like everyone else. Do you think Conseco or Bank One collects lot rent?
In no way, shape or form am I responsible for lot rent while someone is living there. That’s made clear up front. Only while the place is empty am I responsible. And am also working on buying repos and NOT being responsible until someone’s in. But then I’m still out of the loop. Handling the lot rent (you’re basically guaranteeing it) should only be done in unusual situations IMHO. Don’t make it standard. Good luck.
Blane
interesting - Posted by David S
Posted by David S on February 19, 2001 at 09:03:12:
If you plan to buy repo’s from some of the larger finance co’s, not only will you be asked pay lot rent while the home is vacant, you may have to pay all back lot rent plus late fees. It’s in most finance co “bid sheets” and is so stated to cover them from having to pay the same.
You may negotiate something dif from the PM or owner, I certainly do, but don’t think you have no responsibility during the transition.
That being said, I have no problem working with the PM’s when it comes to making a deal work. It’s a cost of doing business, keeps everyone happy, and this cost is just added in the deal by adjusting my purchase price on the front end to offset these costs.
If you do your due diligence up front, you will know all the associated costs when buying and you should reflect those costs in your bid.
David S