Lost a mobile home due to competing investors removing it from my park

Had a couple buy a mobile home, then they fixed it up and a month later, an investor apparently had hired the team to fix and then remove it from the park.

Near impossible to find decent mobile homes here.

How can I stop this from happening?

Going to potentially eat seriously into profits this year trying to find and move a new home in :frowning:

Next time a home is available, have your own team rehab it and then sell it for the market price. The investor will be priced out. In regard to the couple that was hired (assuming they signed a lease), take them to court for breaking you lease.

  1. I dont have a team, and finding affordable contractors around here that know what are reliable doesnt seem to exist

  2. Like most others here, my leases are month to month.

  1. Try harder to find a contractor - if they are expensive, charge more for the home.

  2. Have the new tenant/home buyer sign an annual lease if your State allows it. Then have it convert to month to month.

Talk to your tenants and learn if they are planning on moving in the near future. Offer to buy their home for market value or just below so that you can put money into the home, rehab it and sell it to break even or make a little money.

You need to change/adapt to this threat, otherwise you’ll lose more homes.

2 Likes

Where are you located?

Idaho. Why do you ask?

was curious where you are finding bad demand

Actually, what I want to do, assuming its legal, is include a “first right of refusal” in any rental contract, which gives park right to buy home before anyone else. Offers need to be in writing as well to avoid “shill” bids. Still not sure this will help.

What I learned is these guys are taking mobile homes, flipping them, then dumping on a few acres of land, so people can overpay for a tiny home on a large piece of land. This is how they can afford to overpay.

1 Like

You may want to check with an attorney to see if it’s legal to have a first right of refusal in your lease. Or, just add it and deal with it if you have to. I had it in my lease but had to remove it when I refinanced. If you offer the tenant a fair price and a quick and easy ‘out’, you should be successful.

Where are these investors in my area? I have several very nice homes I want to sell and I have zero problem with them moving them out of my park.

Hi @onlinefun
until recently I was selling homes at cost - not market, but in exchange for the discount, I had the buyers sign a contract that the house can not be moved out of the park for a minimum of three (3) years or they must pay me the pro-rated amount of lot rent remaining in that three (3) year term. It has worked very well and I have had people move out early and pay the penalty. That being said, the new homes I sold them in 2018 at cost of $62k-ish, they sold them (fortunately they stayed in the park) three years later for $90k and $110k so who is the dummy here? :roll_eyes:

That being said, Idaho is a GREAT market where used homes sometimes sell for more than new homes if you get your dealers license and buy them direct from the manufacturer.

Hope this helps!

2 Likes

You can try the first right of refusal or the 3 year lease, but just because something is written into a contract doesn’t mean the parties will abide by the contract. Our best solution was to stop worrying about it and to bring brand new homes to the park. The new homes may take 10 or more years to payoff, so the home is stuck for that period. Also by allowing the older homes to leave, we get better tenants in nicer homes at higher rents.

3 Likes

I see a couple of options to deter future happenings:

  1. First Right of Refusal. As you and someone else suggested. Of course, check your local laws to see if it’s permissable.
  2. Instead of selling the mobiles outright, consider some kind of owner financing. That keeps you tied to the home/title/etc. Could be beneficial to you in other ways as well (greater net price on property via interest, better tax treatment). But if Buyer is adamant about bringing lots of money to the table, just get them to agree to say 25% financed. Tell them this is your model. Have a mortgage drafted up for a short term, even if it’s 3-5 years. That keeps you in the loop.
  3. Take legal action against the Buyer (who was also your tenant). Could be fruitless. But at least you will have a judgment against them, even if it’s just a piece of paper. Who knows, some defendants may actually cure it.
1 Like

Clarification: If used homes sell higher than new homes sometimes, then why would you suggest buying new from manufacturer? unless manufacturers are selling used homes?

Sorry for the delay, but used homes sometimes sell for more than new homes that you would pay for as a community dealer
not retail.