Right of first refusal (prevent homes from leaving)

mobile home university
1

I just purchased the park where the prior owner had a policy of buying every home that became available, then turned around, and sold homes on notes. He made significant mark ups, and charged high interest rates. He looked at it as a profit center. That is not our business model.

We are trying to reduce the amount of notes and owned homes, but at the same time, do not want to expose ourselves to poachers who will gladly take the homes to owned lots offsite, and leave use with vacant lots.

What do you advise to safeguard against this situation to the extent possible?

We were contemplating adding “right of first refusal” language into the leases, for starters, then someone else said we should require that any home be listed by us, the owners, so that we control the market so to speak.

Is there a better or worse way to accomplish this goal?

Any new homes we bring in will be built on foundation walls, so as to safeguard from homes leaving in the future

Any thoughts would be most appreciated.

2

Notes area a wonderful source of income in your own park. You can charge a fair interest rate and everybody will be happy.

I charge anywhere from 5 to 9 % depending on the risk.

3

The best way to keep poachers away on the homes that you sell is to make a requirement of the sale that they sign a 3 to 5 year lot lease, and put in the condition that the home cannot be removed until the lease is paid in full (if that’s legal in your area).