Purchasing a park where seller is carrying notes for POH's

Hello All,

I am going to be placing some offers soon to purchase my first MHP. One of the parks happens to have a few notes carried by the seller for some of their POH’s. it is my understanding you need to be licensed as a mortgage loan originator to be able to offer seller financing on POH’s. In the situation where you are purchasing a park that the seller is carrying these notes, and you are not carrying said license, how would you typically handle the notes and the transfer of them?

Is it worth getting that license to be able to sell off your POH’s this way?

Another question to piggy back on here in regards to seller financing… I hear it all the time, asking the seller to carry the paper if you can’t get traditional financing and they are willing to… are they able to do that without that license? How exactly does the seller financing work, and is it different from carrying a note on the park itself versus carrying a note on the home?

Depending on how many POHs I would not purchase them with the park. I would let the present park owner keep them and just charge him lot rent on each home. Make the POHs his problem not yours and purchase the park based only on the lot rent income.

There are roughly 50 units in the park, half MH and half RV. Seller owns 13 MH, 3 have seller carried notes, and they also own 6 RV’s.

Does not appear to be a good investment situation from my perspective. Far too many POHs (13) that you would need to get rid of. I am also not too keen on the RVs personally so this would not be something that would appeal to me.
Too much work with POHs and RVs.

There are multiple ways to sell POH, and some of the regulations are state specific too. We have sold POH and hired an MLO as part of that process. Lease with options are possible in Texas as long as it doesn’t come across as a disguised mortgage (e.g. 20 year lease with $1.00 purchase option on the 20th year)…

RV’s are also completely different than mobile homes in many states. Depending on their use they may not be a dwelling and are not subject to DF / Safe Act rules, such as if it’s a weekend fishing cabin for someone.

In my experience make sure that the licence for the MHP is not in violation seeing that there are RVs in with MHP. I know in my state MI that there has to be a true line between the RV side of the Park and the MHP side of the park. I am dealing with that issue currently on a park we are in LOI with. The state licencing board made the seller give back those lots that he had RVs on that were made for MHs due to you can’t have MHs next to an RV and then another MH. The state said if one side of the street was RVs only that would qualify not mixed in with MHs. Sorry don’t mean t o add to your challenges, but I needed to share.

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