I have been dealing with a local park for over a year and a half now and have done 4 deals and am working on my 5th. This park is part of a corporation that owns 60+ parks mainly in WI and MN. I have a very good relationship with the park manager and cleared my “Lonnie Deals” with the right people when I started and haven’t had any problems at all. That is until 2 weeks ago when I got a call from the area manager for this park. Apparently “someone” decided that they didn’t like the fact that I wasn’t a “legitimate” lender and wouldn’t allow the sale to proceed that had been approved by the corporate office. Long story short, they took my buyer and sold them one of the park owned homes and basically forced me to “list” my home with them. They tried to put a positive spin on it and told me that because they were going to finance the deal now I would get all my money up front, which is alright, but I’m going to miss out on the additional income from financing and won’t be able to re-sell if the buyer defaults. I bought the trailer for $2500.00, put another $1,000.00 into it and had it sold for $8,000.00 on terms. They took it, have it listed for $12,900.00 and haven’t found a buyer yet. Good thing they aren’t charging me lot rent, I could really be in a bind. Not much I can do about this and, unfortunately, they own most of the parks in the area that I would work in so I may be out of the Lonnie business as we all know it. It will be nice to get the money right away but it sure does take the wind out of your sails when something like this happens.
I’m in MN and am curious which corporate owner you are dealing with??
Hopefully I can avoid them! =)
I am a park owner in Ga. I not sure that it would be legal to do what they did but I understand and appreaciate your willingness to work it their way.
It will surely bring you more business in the future.
Maybe get into land/home packages - a little more expensive than classic Lonnie Deals, but easier for a buyer to find a conventional 30 year mortgage and cash you out (or you finance and keep the cash flows…).
My 2 cents worth,
Maybe I am looking at this wrong but this looks like it could be a really good deal for you depending on how it exactly plays out. Basically what you have is someone that is willing to buy your note (you just don’t have to make one and then sell it) and give you cash, while also marketing the home for you, all the while not charging you lot rent. To top it off they are trying to do this for even more money than you were…
Now if this works out (and I admit it is is a decent sized if), you will be making more money, getting your cash out fast, not having to do the marketing, and not paying lot rent.
To me it sounds great on the surface so I would see if they actually fulfill their end of this. If so then I would be jumping on every deal I could. You could make yourself a large chunk of cash which you could then even put into land/homes which will get you that steady stream of income.
Good point Jad