Methods I use to turn Park Owned Homes into Tenant owned Homes

[Logan M.]

*Disclaimer, each state has different laws, so check those for the state you are investing in.

Many investors run from mobile home parks with too many park-owned homes. 

Banks are not crazy about parks like this because of the perceived risk with stabilization and for good reason. POHs are more expensive and have higher turnover than a community with tenant-owned homes.

Here are the ways that I turn POHs into TOHs:

1. Seller Financing: Be the bank to those wanting to buy homes in your communities, especially good tenants. I try to make a little more than their current rent and I will do a long term. You can collect a down payment in many cases.

2. Lease Options: This is better than a typical lease because there is an expectation that they will buy and in many cases, you can make the tenant responsible for some of the maintenance and also you get some option money.

3. Outright sale: Cash buyers, because the price point is lower this is very common.

4. Bank Loan: Many lenders will finance homes in your community. They typically want it to be 1976 or newer when HUD regulations went into place. A few companies that will lend are 21st Mortgage, Performance Equity Partners, Inc., and a few others. Many of them have caps to what you can sell the homes for so beware of this.