Hi all,First off, thanks to all of you guys who have put this together and contribute on a daily basis. I’ve been reading the forum on and off the past few months and have learned more from here than I imagine I could anywhere else. I’m finally making my first post as I have a question I haven’t been able to find answered anywhere in the archives.Background- I am in Texas and am purchasing a 90 lot park in which I will own roughly half of the homes. I have come to the understanding that one of the golden rules of park investing is that renting is simply not the way to go. I’ve investigated this theory and I can’t help but agree. If I could get rid of my COH’s on day one, I would. My question has to do with the legality of selling my homes. I understand that I have to become licensed to sell this many homes. I have seen Frank post a lot about the SAFE Act and selling, and while I have tried to do my own research, I am still confused. I’d like to get these homes sold as soon as I can, and have seen where people would sell homes for literally $1 just to get rid of the expenses that come along w/ renting. Is this something that is still allowed? Can I do that if I am licensed? Is there anything else I should know about selling off these homes in Texas from a legal/financial perspective?Again, can’t thank all of you guys enough for all of the great information. Look forward to collaborating with you guys in the future. Thanks!
You are correct about the pain of renting and maintaining park owned homes. There are two issues:1. For sale of homes you need to be licensed by the State of Texas. This requires completing a licensing course given by the TDHCA in Austin over 2 1/2 days (not a big deal except for the time and expense, since everyone passes). Then the license has to be maintained by completing an 8 hour CE every two years (given on line as well as classroom).2. If you sell for cash, there is no problem. If you sell in a way that looks like you hold a mortgage or lien, you have to comply with the SAFE Act which is quite burdensome and there have been many threads on this forum relating to that.
You might also investigate simply giving the homes away to any tenant that will sign a long-term lot lease. That might clear you from dealer requirements – not sure. Worth investigating, though.
Hi! New here - can you tell me what COH stands for? Thanks in advance!
Community Owned Home = park owned home