All Forum Posts by: Marc Faulkner

Yes we hold titles. The title are processed into the buyers name w/the seller listed in the 1st. secured lein position. We also keep a signed Power Of Agent on hand that is part of the regular paperwork. This allows us to take care of any necessary title work to re-sell the home. Dude-you need to get and read the book(s)! I assumed you had read it since you have made comments about Lonnie Deals.

I am seeing some in my area from $12,000 to $30,000, $5 to 7K rehab, $30-$60k retail w/ seller financing.

If you are looking for larger payments pr. month and bigger pay offs down the road just take this same concept and apply it to regular homes or mobile homes with land instead of mobiles in parks. I am still doing "Lonnie Deals" but am focusing more on land/homes and regular SFR's since the prices have gotten as low as what I was paying for mobiles in parks 5 years ago.

The home buyer (the folks you sell on contract to) are responsible for not only the lot rent but, the insurance and maintainence as well. YOU are the bank in these deals and all banks do is collect payments, they don't pay lot rents or mow lawns!!!!

Congratulations John these deals can become addicting! Do 1 deal and get paid for years-what can be better? Mr_Investor yes you can buy and sell mobile homes in other cities or partner w/other in different states if the profit potential is better elsewhere.

While Lonnie is no longer in the mobile home business day to day, he has never taught how to structure lease options. Lonnie likes retail installment contracts because they are tighter and make the buyers feel more like real home owners vs. renters who will trash the property.

In Michigan it states 3 a year but, the law also clearly states that if you are in the business of buying and selling mobile homes for a profit then you are required to become a dealer. I would think having the ability to do "retail sales" and tighter installment contracts would be incentive enough to become a dealer. Also lease options with mobiles in parks are not a sellable instrument to anyone but a possible private investor. We buy and trade in mobile home notes all of the time. I personally also like to have the option open of selling off all or part of my note to raise capital for more investments!
I don't like to hold title or ever be responsible to a park for paying lot rent. You are personally on the hook for this doing LO's vs. retail installment contracts. I don't understand why anyone would bother with LO's. I hear guys say all the time that it is easier to get the homes back should we have a default. The fact of the matter is if they are not paying you, then they are not paying the park and the park can and will kick them out for non payment of rent for you! You show up with a little "U-Haul money" for the dead beats, waive it under thier noses and let them know it's all thiers as long as you get your home back in decent shape! Cost? Maybe $200-$300. Works 99% of the time as long as you can manage to keep it all friendly.....

Curious why you would be paying lot rents? Are you lease optioning these or selling on installment sales contracts? Most good parks will not allow lease options. Also wondering why you wouldn't want to keep up your dealers liscense? Isn't there laws in your state that limmit the number of mobile homes you can sell each year with out being a dealer? How about the IRS? My understanding is that if you are in the business to buy and sell mobile homes at a profit then you need to be a dealer and the IRS will treat you this way on installment sales regardless so why not just keep the liscense? Also you will never be able to sell notes to anyone other than a private investor without the credibility of being a dealer, park owner or lender.
We do a lot of partial purchases with park owners and dealers that allows them to free up cash to go buy more unites and create more notes. This keeps the snowball rolling! You can retain part of the monthly cash flow and the back end of the note :)

Ryan-I don't know why I am responding to this off topic post but, here I am! Divorce does not have to mess up your credit at all as long as you take care of your business and make sure that all of the bills are still getting paid durring the process. Cancel all joint credit cards immediately, get your name off her car, get hers off yours, work together so that you both have as decent as credit possible when the smoke clears. On the flip side, if your name is on her car and credit cards and she quit paying and you let them get past due, your credit is already sunk. I hope it works out. DIVORCE is not fun for anyone.

I would like to invite all of our connections to BP but, not if that means they are all going to who each other is! What would they need me for then? Kinda kidding but, then again kinda true!!!