Rent to Own trailers

[David Pearson]

I'm looking to getting in this market but it seems a little tricky. The trailers around where I live are kinda of on the expensive end. Ranging from 5-10k. Anybody have any advice on rent to own trailers? How long is the lease to own? Do you apply a interest rate or just a flat amount? What's the typical down payment for the tenant

[Ken Rishel]

There are many "land mines" in straight rentals of manufactured homes in land lease communities, but the "land mines" of a RTO program are far greater. RTO is a disguised credit transaction subject to all of the rules and compliance issues that purchase money lending are subject to, including the need for a state issued licensed entity the MLO works for. In some states, this is impossible to do because the state has not established a regulated license to handle RTO for residences which you must have in order to legally employ and utilize a MLO*. Anyone so engaged has created a ticking time bomb for themselves.

( * Since trailers- mobile homes- manufactured homes are, in fact, residences, the sale or finance of them are subject to compliance with a whole range of federal laws, including the SAFE Act.) 

That said, there are methods to handle this that are both legal and workable to handle the extension of credit for operators of all sizes that will vary from state to state as state laws also affect what is legal and what is not.