First Lonnie Deal

Hello everyone.

I’m working on my first Lonnie Deal and would like to know - should I sign a Sales Agreement with the Buyer at the same time they complete the Credit Application, or should I process the Credit Application and approve the Buyer first, before we sign a Sales Agreement?

Mike,

It is ok to sign a sales agreement at the same time. Just BE SURE you have the contingency clause in it that the agreement is subject to credit, background, rental history, etc, approval. Also BE SURE to have a date by which the buyer will complete (close) the deal. If you don’t, theoretically, he can come back a year later and say “well, I’m ready to buy that home now.” Also if s/he drops off the face of the earth after giving you an application and non-refundable deposit, you’ll know when that deposit is yours to keep.

Steve

Everything Steve said. He pretty well covered it.

Michael(KCMO)

Have the been approved by the park? We always used the parks approval as our approval. Saves time, money, headaches and they are going to check them anyways. Do not follow this advice if the park rents to anyone that can fog a mirror.

I also agree with steve on deposits. We took a $100 deposit refundable ONLY if they officially applied to the park and were turned down.