I have a private investor interested in financing used mobile homes for me to move into my park and is flexible as to how the deal is structured. What do you suggest that should work for both of us?
Thank you.
Sam
Wow! Good for you.
We’ve worked with a few investors on a ‘one-off’ basis on individual homes in our communities. The investor purchases the home (although we may pay for the move if it’s not already in our community), and are responsible for paying for all repairs, insurance, taxes, etc. And, of course, the investor must back-stop the lot rent if the resident does not pay.
We fully ‘service’ the house and the payments. That means our manager collects the rents (mails them to the investor or investor’s bank), files the evictions, and coordinates the repairs. Again, the investor must pay for all the repairs, but we coordinate the work, then show the house to new prospective residents, etc. There is little incremental cost to us to offer this servicing - we already have our manager on-site, and know the good repair crews, etc. So we make it a turn-key, easy investment for our investors.
Hope this helps,
-jl-
We operate somewhat differently.
The investor that owns the home is our tenant and pays all rent, water and taxes owing to the park directly. They are of course also responsible for the upkeep of the home as any owner would.
The resident of the home is the investors sub lease tenant and is totally their responsibility. This is the law. Any problems with his tenant we hold the investor responsible. If an eviction is necessary the investor (home owner) is the one we served with the eviction and it is then their responsible for evicting his sub lease tenant to resolve the problem.
This system prevents an investor from washing their hands of any problems caused by their sub lease tenants.
We still screen all investor’s tenants to our standards.
In effect when an investor rents out their home there exists two separate and legal leases. One lease is on the land one on the home. The lessee of the land does not change unless the home is sold and that individual is responsible monthly for all park fees etc…