I am trying to decide how to go about selling my POH’s. I have heard people on the forum say they just tell them pay me X amount for 2 years and it’s yours. Does anyone use the Rent/Credit agreement of Frank’s without issue maybe If they default then hire a lawyer to fight it… I don’t want to go that route.
I was thinking of just using the pay me X amount for 2 years on maybe a promissory note that says after those 2 years I “gift” it to them.
I also don’t want to run afoul of the Frank Dodd act.
2 Likes
Why not approach a local bank explaining you are a park owner, you have a vested interest in the community and try to convince them to take the risk of providing a personal loan to buyers. Offer to insure a resale of the home in the event the tenant walks away.
Partnering with a bank to benefit you and the bank.
Another option is to vet your tenants for a year in the POH to get comfortable with them, and if they’re solid just give them the home independently of the signing of a new 3-5 year lot lease.
There are 1000 ways to skin this cat.
I agree with @jhutson 's statement:
- “Another option is to vet your tenant for a year in the POH to get comfortable with them, and if they’re solid just give them the home independently of the signing of a new 3-5 year lot lease.”
It is VERY IMPORTANT to vet your Tenants BEFORE giving /or/ selling them a MH.
I would recommend to vet them for at least 6 months up to a year or more.
The Tenants in your MHP will be either an asset /or/ a liability.
Good Tenants will not stay with Bad Tenants.
On Christmas Day my Husband got a call from a Tenant. I was concerned what the issue would be (ie…water leak / police call / something else bad).
The Tenant left a vm saying “Do not worry. There is nothing wrong. I just wanted to with you a Merry Christmas.”
Wow, what a nice message.
Now those are the Tenants and phone calls you want to get and those are the Tenants that deserve POHs (our Tenant actually owns his own Mobile Home).
1 Like
While Greg’s idea of a bank for the newer homes is a great idea. I think Jhutson and Kristen is where I am with the older homes… both good ideas.
The “gifting” of the home at the end of the agreed payoff date of the renter is what I was thinking to avoid any “originator of any so called loan”. Which I think Frank’s Rent/Credit contract addresses?
You can gift the home without a rent / credit contract. Less (paperwork) is more (free time). But if you want to combine them to get familiar with the process would be a good learning experience.
But yes rent / credit is a cash program whereas a loan is an interest bearing debt that requires underwriting from an MLO for Dodd Frank (there are some state-specific exceptions for Seller Financing - e.g. one sale per year).
Everyone must develop a system in business that best suites their needs and style.
My suggestions are made based on how I operate my personal business. For me I gear everything towards making money. If it makes me a profit I will do what ever is necessary to realise that profit.
In the U.S. the regulations are such that I would need to be compliant, what ever that required, to be able to sell homes at a profit. Giving something away for free is not in my business practices.
1 Like