Park Owned Homes

I have a park with way too many POH’s. I’m looking for some sort of strategy to rid myself of these. It would most likely help me with doing a refi by reducing my expenses.

Here are the next steps. First of all, how much are you asking for the homes? If it’s more than around $500, you are going to have to get paid in installments, rather than an outright purchase. That means that you are going to be in the home business for a while longer, so you will not be able to get out of it immediately. You need to learn about the SAFE Act, if you are going to even think about selling and carrying paper. Otherwise, you will need to come up with a rent/purchase model that does not violate SAFE. You also need to obtain a dealer’s license potentially.

The best prospect you have to buy each home is whoever is in it currently. See if you can find a structure to make them a homeowner instead of a renter. Those who do not elect to get under your purchase structure will need to be evicted (based on the expiration of their current lease) and you can then remodel and market those homes. Affordable housing demand right now is huge – our average park gets 40 calls per week. This will give you enough customers to fill the homes. You can also sell the homes in “as is” condition – depending on the minimum habitability laws in your state – as an additional option.

Other than giving the homes away to whoever is in them right now you are going to have to stay in the “home business” for the near future. But the good news is that the demand is brisk, and you should be able to develop a plan that meets your state’s SAFE Act and dealer rules and get them all out the door in a reasonable amount of time.

Thanks Frank!