So the city did a tax sale on an abandoned home in my park. A real estate investor and his partners bought the home at the auction through their LLC for around $500. My park manager goes up to the guy (didn’t know he was an investor) and tells him he will need to apply with the park, do a background check, and lot rent is $340 a month. The guy seems surprised and gets a little annoyed and walks off mumbling. So we wait, and wait, and wait. There is never anyone at the house it’s as if the buyer just abandoned it again. Months go by and I finally get from the city the name of the person who bought the home. It’s an LLC that does flips and investing. I track one of the owners down online and call him. He doesn’t answer buts texts me back. I say I’m the owner of the mobile home park and I want to know what his plans for the home are and how come no one has contacted me. He says something about he and his partners are waiting for the title and the city doesn’t know if they can get them a new title or not yet but he wants to work together so we can both make a little money.
I say that’s great but I’m upset I had to track you down like this 4 months after you bought the home. But I tell him I will make him a deal. I will forgive the lord rent owed which stands at $1,600+ and counting if they fix the home up nice and sell it or rent it. I said if you just plan to sell it as is or very little improvement I want the lot rent. I also say but I will need the lot rent paid and I will refund it to you if you renovate the home. He says he needs to talk to his partners and he will get back to me. Two weeks later I text him again. I say did you talk with your partners, he said they are coming this week to look at the home and do estimates. I say ok when you come please bring the rent owed and give to my onsite manager. He does not reply.
This is where I want opinions on what I should do from here on out. The home is an old late 70’s model that has been abandoned for 3+ years. If I would have had the title I would have demolished it. I believe this group of investors did not know what they were getting into with mobile homes and parks. I get the feeling they are slow playing until they decide if they want to fix it up or somehow leave me hanging on the rent owed. Do I continue to be patient and hope for the best? Do I go Mr. Bad guy and tell them if I don’t start getting some cooperation I’m coming after them and the LLC for almost 4 years of back rent? Is that even possible to go after the back rent owed from before they purchased it?
I’ve just been very patient and I don’t get a good feeling from this group. I would love to play nice and they fix it up and sell it but I fear they are going to realize they made a big mistake and try to just run. I know they have the money to pay the rent they owe and say they made a mistake and turn the home over to me but I’ve been screwed enough to know that’s not how the world works.
Why did you let the homes sit on your property for +3 years without 1. Doing a lien sale on it, 2. Remove it from your property?
These guys will probably come to the same conclusion that you did and just abandon it.
If they do that then ask them for permission to destroy the home. Get it in writing.
I have 24 other vacant lots to fill I was not losing money letting this home sit. Not sure the process of a lean sale but it sounds like lawyer fees would be involved, only for no one to buy the home. When you say remove it from the property can you explain that? Is that like towing it to the street and leaving it there? I can only image how pleased the city would be me for something like that.
So not worth going after an LLC to recover money in your opinion?
Sounds like they wasted $500 and you’re in the same position as before. Here you file an FED and if zero claim or bucks can junk or give away home. Check your state. They might have bought at tax sale sight unseen.
Mistake you made was not properly enforcing your community rules/rent the minute you discovered the new owner. No point in being upset with yourself now for being a nice guy but keep in mind that being a nice guy means you disrespected your other residents by not demanding rent payment from the new owner. No good deed ever goes unpunished.
At this point you need to rewind. What is your normal business practice when a resident misses a rent payment. You have given sufficient time for them to pay. Send a eviction notice to the new owner/investor demanding rent payment back dated to the tax sale date. Never forgive back rent unless you are willing to do it for all home owners.
On the other hand if you regularly do not insist on your other homeowners pay rent you can do nothing and see what the investors do.
I agree with most other points made. You have been lenient enough, time to bring the heat. Any other park (esp the corporate-owned ones) would have either evicted or taken some sort of disciplinary action.
I can see you’re trying to play ball with them, as they may solve an eyesore in your park. However, its starting to sound like you’ve given the situation adequate time. They may not be the problem-solvers you were hoping for.
I would file a FED for the full amount owed($1600+) Trade ownership of house to drop eviction, or let the judge decide. If you get a judgement, the LLC sounds collectable. I bet that you end up with the house and he walks away. The LLC is not your friend nor your partner.
I have found that going after people for back rent is not really worth it. Typically, you end up with a worthless judgement. If the home is worthless then you just wasted your time and money (if you hired an attorney).
You are better off moving forward and filling up the 24 empty lots than spending your precious time and energy going after an LLC that made a mistake.
I would serve them an eviction notice. Then tell them that you understand that they are probably going to abandon the home. At that point ask for written permission to destroy the home.
The home is 1970s, so it is probably worth nothing. I would either file eviction against the company then claim possession then rent, sell, or demolish the home on your own. The other option is to just demolish the home and hope they don’t come for it in the future, which they probably will not.