Seller Financing Park Owned Homes

[Logan M.]

I want to share a quick story about a community with park-owned homes. Many investors in this space avoid POHs but they can be incredibly profitable.

In March of 2020, I purchased a community in a good area with 9 spaces and a single-family home. The purchase price was $600,000.

After about two years I started selling financing the park-owned homes to the tenants. The range of payments for the seller-financed homes is $2,000-$2,330 per month. These are old homes, built in the 70's.

This example is a true story and I've been doing it in other communities we own just not for so much per month. What I have realized though is that I create a massive increase in cash flow over about 10 years and get the park to a position where I am just responsible for the ground and utilities.

[Logan M.]

Quote from @Dave Rav:

@Logan M. I just know that generally speaking, a foreclosure takes significantly longer than an eviction.  I know the statutes are per-state (and I dont know Utah's), but some states can take as much as 15-20x longer than an eviction.  At least this is the case for real estate (not necessarily MHs)

 The strategy I have heard used is having in your seller fi agreement that they can't move the home until it is paid off and then if they are not making payments file for them to leave the space since that would still be an eviction. If they can't pay you they can't afford to move their home. In Utah, we can give them a 5 day notice to pay or vacate if they own their own home.