Got some questions?

[Alex Hart]

The area where I live is loaded with MH's, and I'm wanting to take advantage of the demand for this type of affordable housing. I've put some ads out that I buy mobile homes and my phone is driving me crazy (not complaining). I have some homes to go look at today and wanted to ask you guys some questions before I buy or sell a mobile home. Sorry if this has already been covered.

(1.) Do you put the MH in your name or your LLC's name when you buy and sell?
(2.) How long of an inspection period should I have in my contract?
(3.) Are you guys now using mortgage brokers to write up your notes?

Thanks,

Alex

[Bill Gulley]

Alex, the SAFE Act will apply and since your MHs are not owner occupied, you will need a mortgage originator. You'll need to check with state law as to how many notes you can do as well.

I would also say that if you have an LLC, you should use it, especially since you probably are not getting financing for your deals.

Using multiple LLCs will probably not cut it with the state as you would have a material interest in each deal, regardless of what you call yourself, it's still you!

As to creating your own notes, having a mortgage originator originate the loan does not mean you can't do the note, but you'll need to check on what the originator is allowed to originate. You might want to consider options and finance the option price or do a sale contract that expires and can be renewed with an additional amount to the down payment. Good luck, Bill