Close to forty states had RTO laws last time I counted. If you intend to RTO, personal property, ie., mobilehome buildings on leased land, or on land under contract, or portable buildings, you will need to know your State’s Statutes related thereto. We are going to discuss the cash flow potential of RTO’s and the portable building RTO’s, for those that do it legally. The RTO laws of the State of Alabama, where I live, are very favorable to the retailer. If you have a mobilehome park you can offer the buildings to your tenants. Most local RTO retailers of portable buildings collect three times their cost in five years. That’s a nice ROI.


“Rent to Own” for the newbees.


I notice that you buy your buildings from retailers. What is your investment for a 8 x 12 and what kind of payments does this produce?

Also I must admit that I have a lot to learn about RTO. Do you charge sales tax up front or on the last payment?

More ?'s to come


Wayne those buildings in the metal models average from 1200 to 1500, according to how many windows and door types and wiring and lights, and which supplier. I have three metal portable buildings sources, and each one builds a good building with a warranty, and delivers and set’s up dependably. The only time I buy from a retailer is when some prospect wants a used building.


Wayne have you looked up the law? Many times the tax base requirements are mentioned there. I’ve seen a manufacturer from out of the state of Alabama use their own state’s lease with an option to purchase law. This is an unregulated business, and there is no portable building manufacturer’s association, so many times it’s easier to get forgiveness than permission. That manufacturer, selling directly to the customer without a dealer, is paying the taxes on the buildings in the down payment.


One of the best ways to come to understand portable buildings is to shop for one. 12 x 16’s and 12 x 24’s are much cheaper per square foot to sell. So I push them. The customer will never need less storage space, that’s your attitude, and for sure they will need more some day. Payments on five year rto’s on those size run from 88 per month to 99 per month.