The park I’m looking at has 2 park owned homes that the current owner is in the process of selling. I am very lucky because he has agreed to deduct the sales proceeds from these homes from the purchase price of the park. Incredibly honest of him, imo.
Anyway, I’d like to get my lender to fund the entire purchase amount of the park and take the sales proceeds from the POHs as cash. It’s going to be $10,000+, so a nice little reserve right off the bat.
How do I word/structure the addendum so I can do this? Is this even possible?
Sure it’s possible but illegal where we are. Ask your bank or lawyer they will be the best to instruct you on how to do it.
If you do not want to ask their advice then you probably already know it’s illegal.
There’s no intent on my part to do anything illegal. I have no problems asking for legal advice but thought I might ask here first before pursuing the idea further.
In that case your lawyer is the best person to ask.
It’s not allowed in most states too (I have seen this attempted for residential anyway), it’s considered deceptive pricing since you’re inflating the sales price but taking a de facto discount. The title company will not facilitate this as part of your contract.
You need to either have the value of the POH’s removed and the Seller keep the notes or you take on the notes at a reasonable discount and call it done. If you keep the notes then you’ll need to vet the buyers and their ability to pay, background checks, etc…
But yes confirm with your attorney.