Mobile home Lots

[Michael Swanigan]

Need to get some of your wisdom on this situation I'm going through.  I am purchasing a lot that allows mobile homes.  I want to owner finance them in order to make them affordable to buyers for a quick sale.  What type of paper work/documentation do I need in order to make the deal legal?  Do I need to hire a lawyer?  Also if they are making payments do they get the deed when they give me the down payment or do I hold on to it until they pay it off?  And if I keep the deed will they be allowed to purchase a mobile home from a dealer if they do not have the deed in hand? 

Anybody ever tried this strategy before? If so, please respond.

[Jim Johnson]

So I would hold off just a bit prior to buying a book and copying any finance forms. 

Background- When lonnie deals were done prior to the new lending laws- I had hundreds of them. Back in the day- I just financed homes and did not own any parks. Fast Forward- I have 5 parks and in my parks we use a lease - option to get people into the homes and at eh end of the lease- they can buy them. You need to do a little research in the state your doing this in, as you will probably need to be licensed. I take note your from Texas, and while I am from Colorado I have two parks in Texas and they have some licence requirements, document requirements etc... you have to visit Austin, take some classes, pay the state and the insurance company and only then can you sell a home. They will nick ya if you even advertise a home for sale without being licensed. 

Anyway- no matter what state your in, if you are financing the home, and using it as security you need to jump through the SAFE act stuff- which will probably knock out about all of your tenants from being able to finance the home. 

Do not just get an old lonnie scruggs book, copy the financing papers and do deals. If your selling for cash- you probably must be licensed and you will probably need to follow some state rules and regs regarding the sales.