Transition to lot rent

mobile home university
1

I am looking buying a park with a few homes that were previouly POHs that the owner has sold to the tenents. I am comfortable with the valuation, but have a few questions:

Is there a way to buy the park, without taking on the compliance risk associated with the SAFE Act? In other words, can I buy the park and notes, but the park seller would retain all of the compliance risk?

Secondly, I know that it has become harder (if not impossible) to move homes into vacant lots and seller finance. Doesn’t the same issue apply any time a tenent moves out? In other words, if a tenent moves and abandons the trailer, you can reclaim the trailer, but are left with no ability to assist the next buyer with financing. How does financing work when a tenent simply moves out of their home?

Finally, there has been a lot of discussion about major metro areas vs rural. What are your thoughts on a park in a section of a major metro area that is a hotbed of MHPs? This park is surrounded by other parks (some nicer, some less nice). All are 1-3 star parks. All of the parks in the area are full or close to full, so demand is high. Thoughts?

Thanks!

-Ed aka Kukadog

2

Ed -

Please search this forum for ‘rent credit.’ You’ll find a new way to finance mobile homes without being subject to the SAFE Act. Bascially you allow your residents to purchase any mobile home in the community with their payments. This way your financing is not a mortgage since it does not attach to any specific home. You should also come to the next Bootcamp.

It is no problem that your park is amongst other parks. The fact that they are full does demonstrate good demand across a broad range of home types (1-star to 3-star). This business can be like an auto dealership. Ever notice how all the auto dealers congregate together on the same street?

-jl-