Question on Rent To Own Term, Paperwork, and MISC

My question is more in regards to the RTO structure.

So lets you have the lot rent@ 250 . You are going to have to bring in a home. The home will rent out for 495 on a RTO. How do you determine the term of the RTO?

So 250 month on LOT - 495 for the rental so rental is (245 a month).

So that is 2940 (for the year) in “RTO” Credit assuming also then is it a 100% credit towards the system. So lets say the home is 10k, costs 5 k to bring in so you are into it for 15 k.

Are you just saying , oh it will be a 3 year term, 5 year term, or 7 year term? So essentially losing money on the PHO (3 year term lose money, 5 year almost break even (less anything you put into, skip etc) , or 7 year profit (more realistically break even).

I am assuming that you can’t do an option exercise payment as that sounds more along the lines of a sale as well as DIScouraging ownership.

Also, as Frank discusses the green stamps, are you physically providing them something or just making a note on their account as 1 payment equals. I think we will be doing this route on homes so just trying to carry out the logistics of it all.

LASTLY :)o Thanks if you made it this far. Whats a good place for basic paperwork on RTOs and park specific items? I have the MH course by Frank and Dave which I think are great and was planning to use modified versions of those. Just wanted the PHO RTO some type of form for that reflected for the state of Texas. If anyone has any Texas paperwork they care to share, it would be greatly appreciated and would promise you Lunch if you are in the Houston area! I know you are not an attoney, dont give legal advice, entertainment purposes only etc (tu)


So- in Texas there are some special forms you need to do a lease with an option to buy, and there are some rules you need to follow. You will probably need to comply with regulation M, which you can google and get the form from TexasMHA dot com. You will need to comply with some rules, like the option needs to be a fair price, not zero. The space lease, and lease option should be separate- two separate entity’s is even better. Not the same document for all of it. Your space lease agreement should come from the web site listed above. There is a huge list of documents you need to sell the homes, most of them can be found on the web site listed. If the home is over a certain amount- you will need to comply with regulation Z- I think the number is like 51,000.

Our lease is triple net, so we do it a bit different than others- My parks are in the valley and the Dallas area, I only fly through Houston when heading south, or I would do lunch!

Hope this info helps…

Thanks for the response Jim,

It is appreciated. If anyone else still is interested in helping out who has actual forms, that would be great (tu) !

Jb - I am in Houston and I would love to share notes. Send me a pm and we an try to hook up. Thanks.

I’m curious for those of you who have already sold POH’s on an RTO basis…what do you do when the tenant needs to move prior to fulfilling the full lease term. IE: Do they forfeit all credit they have accrued or do you allow them to sell their stamps or interest in the mobile home (which really they should not have at this point) to a new tenant, who steps into their shoes and only needs to complete the lease term to get title to the mobile home?

We will allow / encourage the tenant to have someone assume the lease if they are qualified.