Help with Purchasing Homes from Manufacturers at Wholesale Prices

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In your experience with purchasing from manufacturers at wholesale prices, does the manufacturer include any language assuring that they will fix any structural issues while you are marketing the home? Do they make YOU (landlord/dealer/community owner) responsible for servicing the warranty?

Has anyone had an issue with a Clayton/other manufacturer home while marketing the home for sale on the lot? How did Clayton/other manufacturer handle it?

Who is your preferred manufacturer to purchase wholesale in Georgia if you are buying in cash? We are purchasing one unit to start and will need 6-10 in total for infill.

Per the purchase agreement, Clayton provides NO assurance to the landlord for any serious structural issues after delivery and before you resell the home to a future resident. The resident gets a one year warranty, but the community owner does not.

Dealer/Community Owner responsibilities: service the warranty, but you can only bill back services if you have a prior authorization order approved by Clayton and use a contractor approved by Clayton (TBD on the approval process). System requires a purchase order and prior authorization before bill back/payment will be issued. Service rates are low and will not cover full amount, especially rates for plumbing, roofing, etc. Neither the sales team nor the sales manager can explain what is covered under the warranty. Per the team, the contract is from corporate and they haven’t read it. They have referred us to legal for questions.

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If there’s a defect in manufacturing then Clayton will fix it, whether it’s the dealer’s, Community owner’s, or resident’s home. I’ve bought about 18 or 20 Clayton homes and they’ve never given me a hard time over any repair. If it’s a simple repair that any of my own contractors can do then I have my contractors do it and bill back the actual invoice. They have always reimbursed me. They’ll even overnight me the replacement parts. They’ve done repairs for me that were discovered well beyond the 1 year warranty. If there’s a specialized repair then they send their own factory service team up to fix it. I wouldn’t get too in the weeds on this, they prob referred you to legal because they don’t know how to answer the questions since they just take care of things as they come up in a reasonable manner. I’ve found all the manufacturers I deal with up north have been the same way.

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Also I’ll add that each home comes with a warranty booklet that clearly defines what is covered under the warranty.

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Thank you for the quick response! This is so helpful.

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