Dodd-Frank and Mobile Home Seller Financing

[Philip Lamachio]

So, if used mobile homes are considered personal property and not real estate (unless they are sitting on a permanent foundation, why does Dodd-Frank apply? 

[Bill Neves]

@Philip Lamachio @Marc C.

Hi Marc - I'm in the Portland OR area where you used to live.

I no expert, just have done a bunch of real estate deals. I had a 7 unit and 4 plex also, Stick builts and mobile homes.

Philip - Dodd-Frank deals with residences, so not cars. I don't think sleeping in your car would count. But does include boats (that you live in).

Basically - The property securing the loan can be any residential dwelling that contains 1-4 units, including houses, apartments, townhouses, condominium units, cooperative units, mobile homes (after 1976), and trailers (pre 1976 mobile homes or campers) or boats used as residences.

The old Lonnie Deals was to buy a unit for $2k and sell for $4k as is on monthly payments at 24%. I've done a bunch of those deals, just not the high interest. 

BUT NOW...

DF has a process set in place to make sure I don't buy a mobile home for $1000 and sell it for $20,000 over 20 years. I can... but I have to go thru the steps required. Including a independent Mortgage Loan Originator (MLO) to qualify the people. They have to have the ability to pay, not just fog a mirror like was done during the housing upswing 2005-2008.

If anyone gives you legal advice in this forum, be careful. If you run with it as good to go, it could come back and bite you. 

Unsecured loan may work. Good idea to talk to an investor friendly atty.

Different states have different rules.

Oregon - you need a dealer's license to do your 1st deal. 

Washington and Idaho - need a dealer's license on your 5th deal in a year.

I love the business. You just need to know how to get your ducks lined up.

Yell if you have any quesions.

Good luck and always have fun!