How to convert park owned to tenant owed with Dodd Frank and the Safe Act

Since tenant owned parks are the way to go, how does one go about purchasing a park owned community, in Fl, and converting to tenant owned with the current Dodd Frank restrictions? Should I even be considering such a conversion as my first park? Most of the park owned I’m looking at are 15 lots or less. Upon review, it seems as the park owned might be a better deal initially with value add after converting to tenant owned? Thoughts, comments and experience would be appreciated!



It is very unprofitable and difficult to place the homes in the hands of someone who will take care of them and pay you for the privilege. And if they can’t pay you all at once, you had better be careful you are not taking advantage of them or you will get fouled up by SAFE and Dodd-Frank. If you keep the right to take the home back, but promise to turn the ownership over to someone later, if they pay you along the way, that is a mortgage and you are in danger of being held accountable to all sorts of mortgage laws.

It’s a problem for the industry and there are a lot of sidestepping ways to deal with it but one way is just as you suggest, rent until the economic value is lowered from the POH to a point you are satisfied to just give the home away. The key is not to promise anything to anyone before that point.

Or, you could do it right and sell with mortgages, and get a MLO license. I am looking into today. It looks like it is a 20 hour course plus 8 hours a year of CE required.

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Your best option is to simply list the homes for sale at fair market value and find buyers that can afford to pay cash or are in a position to qualify for a chattel loan. Highly unlikely existing tenants will qualify. If the community is appealing you will attract qualified buyers but not if it is a “trailer park”. If it is a lower quality community you may simply be stuck having POHs since the existing tenants would likely never make for responsible home owners. The homes will likely fall into disrepair in the hands of those tenant owners.
Bottom line is if you wish to switch from POHs to tenant owned you want to upgrade. This will avoid any issues with the DF act.
Tenant owned homes, higher quality tenants…win/win.

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I’d be very curious to hear some stats on people that have actually had issues with this, the size of their portfolio, and the states they operate in (and had a problem). I believe @Brandon operates mostly in California where it would seem you’re almost guaranteed to have an issue, but in many other states I feel like it’s a coin flip at best. I have many rent credit agreements in place in the midwest, and have inherited some questionable CFDs from previous owners, and thankfully have yet to run into any problems.

I think Brandon actually operates in multiple states across the country not in Cali

Only Texas for now. Two near Houston and two in San Angelo.

Here’s a little update though, in the past it was my wife who was MLO, but now I will get my own MLO license and have an employee get one too. I’m just exploring how to do that today.

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I just came across this business for seller financing to make a sale compliant. The fee is $329 for the service. If you run the credit it is $15 less. They don’t do any servicing, just compliance. (

Check out their blog, I think this service might work.

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Anyone using their service? Any updates Brandon on getting your license?

Yes, I took an online course and passed a test and now I am a licensed MLO qualified to issue mortgages. And my assistant as well.

Hi Brandon,

I used to do Lonnie deals back in the day and would like to have more information about the MLO that you recently acquired. Could be have a phone conversation about your experiences?