Have just been approved for 21st Mortgage’s Cash Program and getting ready to order some new homes. As part of that process, we set up a new retail sales LLC to sell homes; for sake of discussion, the park is called “Main Street LLC” and the new retailer company is called “Main Street Sales LLC.”
One aspect of the Cash Program is that 21st Mortgage will finance used homes; so our plan is to sell most of our POHs (to either existing tenants or new residents) with 21st Mortgage carrying the notes. That will free up equity currently sitting in the POHs, as well as eliminate lease options and rent credit agreements. And hopefully convert some (most?) of the residents to “owner” from “renter” mentality.
The question: should the titles for the current POHs (park owned homes) be transferred over to the retailer company? There are about 40 POH’s and it will cost $25 per home to get the homes re-titled.
Also, anyone have any comments about the strategy outlined above about selling the POHs and having 21st Mortgage carry the notes?