Long time reader, first time poster. Hopefully some of you savvy experts can help me out. I am negotiating to buy two MHP’s from an individual who is willing to do some owner financing, but also needs some cash out of the deal. Any ideas as to how I can: 1) negotiate a deal that involves as little money out of my pocket as possible and 2) have the owner pay as little capital gains as possible. This will be my first go at MHP ownership. I am excited about the prospects, but obviously a novice. Any ideas would be appreciated. Thanks in advance for your input.
Ken,
Congratulations. I would recommend doing a lease option. Leasing the mobile home parks with an option to buy. This would do the following:
Seller does not pay any taxes on the option money until the option is exercised or expires.
You minimize your risk with a small option payment however you still “control” the property. High Leverage 
No conventional financing is needed (including expensive loan fees, closing costs, etc.)
I would try to get the longest option term possible and lowest option payment possible. If the seller insists on a significant option payment maybe structure the payment with a year’s worth of prepayment of rent and a small option consideration.
Corey
Thanks for your response Corey. Does the Huge Profits course cover lease options and how to structure them? I wouldn’t even know where to begin in negotiating and setting up the deal. My initial plan was to tap into home equity for the down payment and go with a combo of owner financing and a commercial lender for the balance. With the growth potential, I would refinance after five years and be in a good position. I like the lease option idea much better. Where can I find more info on lease options?
Post Edited (09-09-06 18:03)
Ken,
The Huge Profits course does cover lease/options. It actually has forms that you can use to “master lease” the park with an option to buy. Ernest and I have done several deals this way.
Not only does the course explain the concept, there are several “strategies and techniques” with examples on a CD rom that comes with the course. It even shows you how to use IRA funds for this type of transaction.
Let us know how the deals turn out.
Steve
Thanks Steve, just ordered the course. Looking forward to gaining the knowledge paqcked inside!