How I started in mobile home notes

[triple J]

Don't know if this is the right place for this topic or not... But I wanted to share my experience with mobile home notes. This is a great way for newbies or those who have little cash to get started. It can give self confidence and generate some great returns.

I heard a lot about a book called Deals on Wheels by Lonnie Scruggs and decided to buy it and give it a try. Its a WONDERFUL "how to" book. I read it in 1 day and I decided to do a "Lonnie Deal". I decided to buy a used mobile home and resell it offering owner financing. Pretty simple? Sure was!

Deal 1: Knew very little about mobile homes but decided it was time to learn. I bought my first mh for $5k. Sold it 1 week later for $7500 with $750 down and financed at 12%. Not great $$ but not too bad. A year and a half later, the owner wanted out, I had recouped my initial investment, and I took it back. I sold it yesterday for $4500 cash. I was offering finance at $5900 but got the cash offer and took it.

Deal 2: Bought my 2nd mh in a park for $2500. Sold it 3 days later with O.F. for $8300. $1000 down financed $7,300 at 14% for 36 months. Made all my out of pocket money back in 3 or 4 months. They're still paying $242 and some change each month on my $1,500 investment. What's my ROI? As Lonnie woud say "Good 'nuff!"

I've done a total of 5 "Lonnie deals" over the past year and a half. They have had excellent returns for the amount of $$ invested on my part and have been virtually hassle free. I look forward to the mail man not "passing me by" on my Lonnie deals (a Lonnie expression that your mail box should never be empty when the mail man delivers the mail and there should always be a check from a deal). Although not big fastlane, it's a way for people to get started, get confidence and earn some great returns!

 

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[kwerner]

Thought I'd bump this thread and add a thought I had the other morning on this subject...


Let's say you purchase a mobile home in a park for $3,000, then you turn around and sell it for $6,000 with $1000 down, financing the remaining $5,000 for a term of 36 months at 14% interest...

Starting out, you only have $2,000 into the deal ($3,000 purchase price – the $1,000 you received as down payment).

The monthly payment you would receive is $170.89.

So, it looks like you'd recoup your investment of $2,000 within 12 months ($2,000 / $170.89 a month = 11.7 months, rounding up to 12 months). And after that point, the note you’re holding is still earning you $2,051 per year, for two more years, for a grand total of $7,152 (includes the $1,000 down payment). That’s pretty damn good for a $2,000 investment, in my opinion!

However, factoring in the time value of money, I believe that it may be wiser to “churn” your money and Sell The Note (even if you have to take a discount on the note – i.e. selling it at 90% of face value) rather than keeping your capital tied up for 12 months; and this is where I want to focus.

Instead of holding that $5,000 note 36 months (until maturity) to receive $6,152, what if you sold that $5,000 note to a buyer within 3 months for $4,500 ($5,000 note – 10% discount)? Do you think you could take your payoff of $4,500 and re-invest in into another deal? Then do it again, and again, and again? I think so too. And I believe that’s where the compounding effect of doing these deals could substantially increase your ROI vs. holding a single note until maturity - or even holding it for 12 months, when you recoup your initial invested capital.

Now, of course, the downside to selling the note, instead of holding it until maturity, is that you have to find / create another deal. But I imagine once you gain experience in doing this, finding the deals / creating the deals becomes much easier, as most things do once you learn how. And, I think once you compare the numbers, that it will become clear that selling the notes makes more sense – and reduces your exposure to risk as well.

So, the next questions are:
1) Who do you sell the note to?
2) What’s in it for them? and
3) How do I increase my ROI, while simultaneously lowering my risk?

And this is what I came up with:

*First a disclaimer* I’m not suggesting this is the right way / best way / only way to do these kinds of deals; nor am I an authority on the subject (I haven’t even done this yet) – it’s just an “Ah HA!” moment I had this morning while thinking about how to increase one’s ROI on flipping mobile homes, so I figured I’d give it a go and share my thought with the group to get some initial feedback on the idea.
fftopic:

Who do you sell the note to? – You could sell it to someone that’s looking to get a better return on their money – people that may have their money sitting in CD’s / money market accounts / mutual funds / etc. – this could be your friends / relatives / co-workers / business associates / acquaintances / complete strangers – literally anyone with an open mind and a risk tolerance above zero that’s looking to make a better return on their investments.

If you don’t feel comfortable with mixing business with friends / family, you could run ads on Craigslist or in the newspaper – “Looking for a better return on your money? Tired of losing your a$$ in the stock market? Purchase notes secured by real estate! You could be earning xx% per year on your money! Call xxx-xxxx for more information.” Or something of the like – you may have to be cautious about how you word it – don’t want to get in trouble with the SEC for making it seem like you’re guaranteeing a specific return on their investment. But you get the idea.

And another thing - technically, mobile homes aren’t considered “real estate” unless they have a foundation and are on their own land, but you could still run the ad using the phrase “secured by real estate”. And you may, in fact, purchase mobile homes with foundations, on their own land – you may just not have one available at the moment. However, you do own the note on one that's in great shape at a nearby trailer park - it passively earns a xx% ROI, the owners are always on time with their payments, and the mobile home itself is appraised for $xxxx more than what's owed on the note – it’s a real sweet deal (see where this is headed? :smxB! Either way, I think you’re probably going to get more interest / more calls from your ad using the term “secured by real estate” than “secured by a mobile home”. Then you can explain the details to them, once they’ve shown interest in the opportunity and have called on your ad.

What’s in it for them? - The note buyer (the person you’re selling the note to) is getting a much better return on their money purchasing one of your notes, rather than letting their money sit in a savings account / CD / money market account or (currently) losing it in the stock market. Now, obviously your note buyer is going to be concerned about the risk involved in holding the note, so you can ease their concerns by selling them a note that’s had a good payment record, that’s been performing for a few months, and the owners have a reasonable debt to income ratio so that they’re able to continue making the payments.

So, in a nutshell, you’re offering them a reasonably safe investment - they’re buying a performing note at a discount (albeit it’s a mere 10% discount, but at least they’re walking into the deal with some equity – and really you don’t even have to discount the note, it’s just an extra enticement you can offer if they’re on the fence about buying it at full face value). It may take some explanation on your part to help them understand WHY it’s a better return on their money and a moderately safe investment – but it shouldn’t be too difficult. Well maybe, maybe not – probably ought to fully review the benefits and risks before trying to explain it to them in person. And if you’re really having to “hard sell” them on the idea, you’re probably selling to the wrong person (due to a lack of their understanding on investing / finance).

Another point to consider – if you’re dealing with friends / family, you could tell them “Look, if by chance this note should happen to default (where the owner stops making their payments), I’ll help you repossess the mobile home, you just pay the repossession costs, we’ll sell it and split the profits, okay?” Basically this removes nearly all of the risk for the note buyer and helps preserve your relationship with the family member / friend.

How do I increase my ROI while simultaneously lowering my risk? - As explained before:
1) Buy the property cheap
2) Sell it for more than what you purchased it for (maybe 100% markup)
3) Finance the purchase
4) Then Sell The Note!

So, how does selling the note increase your ROI and to what degree?

Well, as stated in the example above: when you’re buying the property for $3,000, selling for $6,000 with $1,000 down, and financing the $5,000 balance at 14% and holding the note – you’re initially into the deal for only $2,000 ($3,000 investment - $1,000 received for down payment) and earning $2,051, or an ROI of 103%, per year on your invested capital. So, we’ll consider the 103% ROI our baseline performance.

Now, using the same scenario: if we hold the note for 3 months (to demonstrate performance of the note) then sell the $5,000 note to the buyer at 90% of face value ($4,500), and you're are able to repeat this every 3 months (4 times in a year), you’ve increased your earnings to $18,000 and your ROI to 900%!!!

That’s an incredible return! And you thought the 103% ROI was great! :smug2:
But wait, there’s more! By selling the notes, you’ve also lowered your risk level because you don’t have to worry about the loans defaulting. And as an added bonus, you’re creating a great opportunity for your note buyer to earn more money than they could through conventional methods. It’s truly a win-win deal!

…And that’s how I believe you can take a “small deal card” (borrowing the terminology from the Cashflow game) and turn it into a “big deal card” by flipping mobile homes and selling the notes.

I’d love to hear feedback / criticism / questions from others that have experience in this area…

 

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[ProInvestor]

Found this at one of Mr MHs lurks...
---
It is great to here someone else is working th MH market. As Steve said it is a great opportunity to make some outstanding returns. I have a bunch of them and here is what I do. I buy one for say $1,500 and pay cash. I ask them how much they have to put down as some times they will suprise you and say $2,000. I usually get $500 - $1,000. I charge 14.75% interest and also ask them what they can afford for a payment. I usually get $150 - $250/mo on top of the lot rent etc. I generaly bump the price 3 times what I paid for it and some times much more if I got a great deal. I use a prommissory note to sell mine and would never rent them although you can make $ with a good repair guy.

I want to make sure you understand that you really need to get to know the park owner or manager who is approving the tenant for the park. They can turn your great deal into a lemon if none of your buyers qualify for the park. That means you have to move the home to anouther park. I solved this problem by buying the parks. I put in as many as I can in my parks to really supercharge the cashflow.

I could go on & on because I love this game. Feel free to contact me if you have questions.

Keep Charging!

Jerry Hoganson
---

 

[nomadjanet]

This sounds like it's right up my alley. I've wanted to get into real estate, but I just don't have the money.

Would these books be helpful for someone like me though? I have NO experience. I wouldn't know how to do a "promissery note" or anything else. I mean I am starting FRESH.

Promissory Installment Note​

RECITATIONS:
Date:

Borrower:

Borrower’s Address:



Payee:

Place for Payment:



Principal Amount:

Term:

Monthly Payments:
________________________________

________________________________

________________________________

________________________________

________________________________

________________________________

________________________________

$_______________________________

________________________ (months)

$_______________________________

INTEREST RATE: Annual interest rate on matured, unpaid amounts shall be the maximum amount permitted by the Laws of the State of Texas.
PAYMENT TERMS. This Note is due and payable as follows, to-wit: _____________________ (_____) [insert number of payments] equal monthly payments of $__________________ principal [insert monthly payment amount]. The first such payment due and payable on the 1st day of _____________________ , 20____, and a like installment shall be due and payable on the same day of each succeeding month thereafter until the total principal of $__________________ principal [insert total principal amount] is paid in full. If each payment is not paid on time, the remaining balance will be subject to the maximum amount of interest permitted by the Laws of the State of Texas.
BORROWER’S PRE-PAYMENT RIGHT. Borrower reserves the right to prepay this Note in whole or in part, prior to maturity, without penalty.
PLACE FOR PAYMENT. Borrower promises to pay to the order of Payee at the place for payment and according to the terms for payment the principal amount plus interest at the rates stated above. All unpaid amounts shall be due by the final scheduled payment date.
DEFAULT AND ACCELERATION CLAUSE. If Borrower defaults in the payment of this Note or in the performance of any obligation, and the default continues after Payee gives Borrower notice of the default and the time within which it must be cured, as may be required by law or written agreement, then Payee may declare the unpaid principal balance and earned interest on this Note immediately due. Borrower and each surety, endorser, and guarantor waive all demands for payment, presentation for payment, notices of intentions to accelerate maturity, notices of acceleration of maturity, protests, and notices of protest, to the extent permitted by law.
INTEREST ON PAST DUE INSTALLMENTS AND CHARGES. All past due installments of principal and/or interest and/or all other past-due incurred charges shall bear interest after maturity at the maximum amount of interest permitted by the Laws of the State of Texas until paid. Failure by Borrower to remit any payment by the 15th day following the date that such payment is due entitles the Payee hereof to declare the entire principal and accrued interest immediately due and payable. Payee’s forbearance in enforcing a right or remedy as set forth herein shall not be deemed a waiver of said right or remedy for a subsequent cause, breach or default of the Borrower’s obligations herein.
INTEREST. Interest on this debt evidenced by this Note shall not exceed the maximum amount of non-usurious interest that may be contracted for, taken, reserved, charged, or received under law; any interest in excess of the maximum shall be credited on the principal of the debt or, if that has been paid, refunded. On any acceleration or required or permitted prepayment, any such excess shall be canceled automatically as of the acceleration or prepayment or, if already paid, credited on the principal of the debt or, if the principal of the debt has been paid, refunded. This provision overrides other provisions in this instrument (and any other instruments) concerning this debt.
FORM OF PAYMENT. Any check, draft, Money Order, or other instrument given in payment of all or any portion hereof may be accepted by the holder and handled in collection in the customary manner, but the same shall not constitute payment hereunder or diminish any rights of the holder hereof except to the extent that actual cash proceeds of such instruments are unconditionally received by the payee and applied to this indebtedness in the manner elsewhere herein provided.
ATTORNEY’S FEES. If this Note is given to an attorney for collection or enforcement, or if suit is brought for collection or enforcement, or if it is collected or enforced through probate, bankruptcy, or other judicial proceeding, then Borrower shall pay Payee all costs of collection and enforcement, including reasonable attorney’s fees and court costs in addition to other amounts due.
SEVERABILITY. If any provision of this Note or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Note nor the application of the provision to other persons, entities or circumstances shall be affected thereby, but instead shall be enforced to the maximum extent permitted by law.
BINDING EFFECT. The covenants, obligations and conditions herein contained shall be binding on and inure to the benefit of the heirs, legal representatives, and assigns of the parties hereto.
DESCRIPTIVE HEADINGS. The descriptive headings used herein are for convenience of reference only and they are not intended to have any effect whatsoever in determining the rights or obligations under this Note.
CONSTRUCTION. The pronouns used herein shall include, where appropriate, either gender or both, singular and plural.
GOVERNING LAW. This Note shall be governed, construed and interpreted by, through and under the Laws of the State of Texas.
Borrower is responsible for all obligations represented by this Note.

EXECUTED this __________ day of _______________________, 20_____.
[Borrower’s Signature:]

__________________________
[Borrower’s Printed or Typed Name]:
__________________________

You can google free promisary note and download one for any state that; copy & paste to word & format to fit the way you want.
Janet

 

[motocoyote]

Lonnie deals! Boy that takes me back , I had a plan at one time to snowball this into a down payment for a park but...well shiny things syndrome. I thought I could get better returns faster elsewhere.

You ever here of any other lonnie dealers losing notes from the SAFE act or was that just the boogeyman that never materialized?

Here in Texas it is best to use a licensed mortgage broker to close, which keeps you in compliance with the SAFE Act. I myself am just getting into my first MH deals, so will make a new post soon with details.

 

[MHP368]

The bigger issue is if the borrower defaults and you've made a real property loan that requires foreclosure. If the borrower retains a good attorney who understands Dodd-Frank, SAFE and seller financing, you run the risk of not getting that foreclosure judgement.

Right , thats what kept me from diving in , im in southern az so as long as your cool being a slumlord you can find plenty of em.

Mobile home investor podcast (john fedro) at the time had no good answer , no one did because it hadn'r gone to court yet. Was it a note on a vehicle or were you writing an illegal mortgage? I didn't want to find out (started looking into buying parks , hence the username)

Those old lonnie scruggs books had a bad vibe too , hole in the floor? Throw some plywood over it and some cheap carpeting you got from a house teardown on the cheap. Good to go lol

If I need to be an MLO to flip mobile homes might as well skip the investing all together and just take the money I earn doing that and go right to buying parks for all the trouble that introduces.

 

[andviv]

Great example. Very inspiring. Fastlane mentality, IMO. You don't have to hit home runs every time at bat... many singles and doubles will do as well. Rep++

Would you mind adding a book review for that one in the Book Review Real Estate section?

Thanks for sharing.

 

[Yankees338]

Great post. Thanks for sharing. Looks like I'll be diving into some research about mobile home notes...

 

[Jason_MI]

Hmmmm.....this sounds interesting. I used to deal with a lot of the mobile home crowd in the SS business. We have several large parks here, but here's definitely a difference in their flavor...eg.., there are mobile homes, and then there are UGLY mobile homes. What kind do you deal in? Are you all over the place or do you focus on one park? What do you think of these deals in a down-area? Am I asking too many qeustions? Have I had too much coffee?

 

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[Starsky]

Ive read Lonnies book & it provides good insight the mobile home market.. my only complaints about it is you only own the home & not the land under it. You are under the control of the Mobile home Park Manager.. If they decide to raise lot rent or decide that they want the home towed out, it will cut into your profits.. If you can control the land thats much better. Also MH notes have a higher default rate so thats more chance you will have go on "chases" to get your money, and also evictions costs that factor in. Its not a passive biz because to make more money, you have create more notes & make more sales etc when the notes pay off. Id also recommend looking more into land/home deals if you continue with Mobiles..

 

[triple J]

Jason,

A standard "Lonnie" deal that I follow is to buy older single wide mh's typically 20-30 years old for $2k-$4k in decent parks. You will need to buy so you can at least double your asking price and offer financing (I didn't follow this on my first deal but at least doubled my sell price on deals 2-5). The interest rates I've charged have been from 12%-19.75% and no one has ever made a peep about the rate. Just know the laws about rates in your state. At 19.75%, selling a home that I've doubled my price, and getting at least 10% down, you can see how quickly returns can jump sky high!

All my deals are in 5 seperate parks but all within a 20 minute drive from my house. 4 of the parks are within a couple of miles of each other. My biggest challenge in all of this is the park owners. Some could not grasp the concept of owner financing. They considered it renting which is not allowed in most parks. Others I think had control issues with someone outside coming into their park and making a few bucks. I have good rapport with the 5 park owners so I can provide references if I deal with a new owner which is very helpful. I haven't done a deal in over a year b/c I've been too tied up in other projects.

I live in upstate NY- which is a down area- and I have no problems selling. As far as I know, I am the only one doing this in my area. FYI double wides do not work with this model as they are usually much more expensive and you can't double your price.

Lonnie did an excellent job of 1. Finding the customer's need (no one finances 20 year old mobile homes- usually 10 years is the cut off) 2. Filling his own need (CF with great returns). Even if you're not interested in the mobile home business, I really recommend Lonnie's book (He's got 2 and they're both good. You can buy the package on ebay and it's soooo easy to read). He really thinks outside of the box. For example, if he has extra money that he wants a return on, he might call one of his people that he financed that always pay on time and offer to finance a couch or TV and attach the debt to the mobile home. Or he will refi his good paying people after they've paid him off. As long as the mail man doesn't pass him by.:smxB:

 

[triple J]

my only complaints about it is you only own the home & not the land under it. You are under the control of the Mobile home Park Manager.. If they decide to raise lot rent or decide that they want the home towed out, it will cut into your profits.. If you can control the land thats much better.

True you don't own the land, but on the up side. It's very easy to get into it b/c it's already set up (plumbing, electric, mobile home) and you don't have to buy the land. Park owners can raise the rent but that falls on the renter not me. The most rental increase I've experienced is $25/month. Everything varies state to state, but as far as I know park owners can't just force a trailer out while someone is living in it. If it goes up for sale, that's a different story. These are things that need to get hammered out before getting started.

Also MH notes have a higher default rate so thats more chance you will have go on "chases" to get your money, and also evictions costs that factor in.

You have to know your tolerance for risk. I own rental properties that I rent to low to moderate income folks (not welfare) so dealing with "trailer people" was not a scary thing for me. Keep in mind that the mobile home people are buying not renting and buyers tend to be better. The key is screen your people. Make sure they have a job and have been there for at least a year. I don't like the payment to exceed 1 week's pay.

Its not a passive biz because to make more money, you have create more notes & make more sales etc when the notes pay off

No, it's not truly passive but why couldn't it be? In the past 1.5 years, I spend on average probably 2-3 hours a month on my 5 mobile homes. Obviously, if I had 30 I would be spending more time. Sometimes you get the trailer back which is nice b/c then you resell again and you don't have to go find another deal.

I just wanted to share my story and think it's a great way to get started in creating a stream of income and also give folks confidence and get the creative juices flowing

 

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[bflbob]

Don't know if this is the right place for this topic or not... But I wanted to share my experience with mobile home notes. This is a great way for newbies or those who have little cash to get started. It can give self confidence and generate some great returns.

I heard a lot about a book called Deals on Wheels by Lonnie Scruggs and decided to buy it and give it a try. Its a WONDERFUL "how to" book. I read it in 1 day and I decided to do a "Lonnie Deal". I decided to buy a used mobile home and resell it offering owner financing. Pretty simple? Sure was!

My son gave a presentation on Lonnie Deals at last year's gathering in Phoenix.
There was a ton of interest in it!

I love the concept, because it is fairly inexpensive to get into.

He may be coming to your neck of the woods soon...
...he's in the final running for the NYS Park Police and the Academy is in Utica.

 

[triple J]

He may be coming to your neck of the woods soon...
...he's in the final running for the NYS Park Police and the Academy is in Utica.

Would love to hook up with him. Please let me know if he's coming and my hubby and I will take him out for some Utica riggies, Utica greens, and some Utica Club beer!!! Or maybe he prefers Buffalo wings? :banana:

 

[Starsky]

Trip J,
In my due diligence, I concluded I wanted to control the land/home moreso that control home and rent the land.. More deductions, appreciation/depreciation & exits.. But having a cpl wouldnt hurt ones portfolio though.
Best wishes & thanks for posting

 

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[S928]

Great post Triple J +.

Yep, MHs seem like a good place to start for those who have limited capital. Honestly, I never considered MHs until I read your post. Now, I'm on a mission to purchase Loonie's book. Thanks! I think the process you described is a brilliant one.

Do you normally keep the MH in the park where it's located? If so, do you talk to the park manager before you negotiate with the seller? How do you safeguard your investment, insurance? If someone defaults, how do you take back the home, is it like an eviction? So many questions! Thanks in advance.

 

[nomadjanet]

Thanks for all the info. We have done 2 mobiles before but never left them in the park this is a great concept as you say setting them up new with utilities can run into some investment. Also thanks for the book recommendation, it is on my list.
Janet

 

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[bflbob]

Thanks for all the info. We have done 2 mobiles before but never left them in the park this is a great concept as you say setting them up new with utilities can run into some investment. Also thanks for the book recommendation, it is on my list.
Janet

You can download the e-Book for $19.95 at http://www.papersourceonline.com/dowinfo.htm

 

[bflbob]

Would love to hook up with him. Please let me know if he's coming and my hubby and I will take him out for some Utica riggies, Utica greens, and some Utica Club beer!!! Or maybe he prefers Buffalo wings? :banana:

Thanks...I'll pass it along to him!

 

[Starsky]

This is where i got most my info from concerning mobile home investing..
http://creonline.com/mobile-homes/index.html

Id recommend Tony Collela's book on Land/Home(mobiles on their own land package) deals.. for those like myself who didnt want to give up a level of control to a park manager...

 

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[Nate]

This sounds like it's right up my alley. I've wanted to get into real estate, but I just don't have the money.

Would these books be helpful for someone like me though? I have NO experience. I wouldn't know how to do a "promissery note" or anything else. I mean I am starting FRESH.

 

[Nate]

Whoa, thanks for that. I feel like I should copy and paste or something

So what makes it legal after it's all filled out and signed? I could probably still botch this up somehow. Notary?

 

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[triple J]

Do you normally keep the MH in the park where it's located? If so, do you talk to the park manager before you negotiate with the seller? How do you safeguard your investment, insurance? If someone defaults, how do you take back the home, is it like an eviction? So many questions! Thanks in advance.

So far I keep them in the park. Moving them can get quite expensive and I've never done it. Also, they need to have the wheels and axel. Before I buy, I talk to the p.o.(park owner) and make sure they are OK with what I'm doing and that the home is OK to stay. This is VERY crucial! I also get a feel for what type of person they are. Are they cool and laid back or are they going to be a pain in the @ss? I had one p.o. that was such a pain we decided to walk away from her park. We were not going to get into a situation where we buy a place and her not approve anyone. All buyers we finance are required to carry insurance and name us as mortgagee. I've only taken one mh back, and they just said they were moving out so it was no big deal. I haven't actually thrown anyone out, but if I did, I would send certified mail that I have reposessed the mh and that they now are tenants and all legal procedures will be handled under NY state landlord/tenant law (my attorney found something that I put in a letter). It is extremely easy for me to get rid of a tenant in NY. I can also take them to small claims, but they do not colateralize anything in NY small claims. They just give out judgements. This is where it is important to know your state laws.

 

[AroundTheWorld]

You can google free promisary note and download one for any state that; copy & paste to word & format to fit the way you want.
Janet

FYI. In my state, if you want the note to be a lien on RE and filed at the court house, both signatures need to be on the document.

IMHO - Get an attorney. Sure, you can find the stock forms online, but you may miss things - and if you find a good attorney the future dividends will more then pay for your attorney fee.

Relationships, relationships, relationships.

 

[triple J]

Id recommend Tony Collela's book on Land/Home(mobiles on their own land package) deals.. for those like myself who didnt want to give up a level of control to a park manager...

Yes, Tony is very respected and is known as the expert on land deals. I've read his material and it's very good, but pricey imo.

This is where i got most my info from concerning mobile home investing..
http://creonline.com/mobile-homes/index.html

Ditto! Tony and Lonnie both contribute to the forums there and answer questions. Haven't visited in a while though.

 

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[triple J]

Would these books be helpful for someone like me though? I have NO experience. I wouldn't know how to do a "promissery note" or anything else. I mean I am starting FRESH.

Absolutely! This is a "how to" book. But it's up to you to go out and do it. You do have to do your dd on what's allowed in your state though. Let me put it this way, I read the book in a day and did my first deal less than a week later. Lonnie puts all his forms that he uses (he's in VA) at the back of his book. Use them as a guide. Have an attorney review them and tweak them. I had mine review them and he said they were fine plus or minus a couple of sentences so we made the changes.

 

[bflbob]

I haven't actually thrown anyone out, but if I did, I would send certified mail that I have reposessed the mh and they now are tenants and procedures will be handled under NY state landlord and tenant laws (my attorney found something that I put in a letter). It is extremely easy for me to get rid of a tenant in NY. I can also take them to small claims, but they do not colateralize anything in NY small claims. They just give out judgements. This is where it is important to know your state laws.

When we talked to our RE attorney on this, he suggested that we do a lease/option on them in NY. Something like $750 down, plus $350/month for 36 months with a $1 buyout at the end. He said it is easier to evict than to foreclose. In effect, it is the same as the sale, but easier to kick someone out with if need be.

 

[triple J]

When we talked to our RE attorney on this, he suggested that we do a lease/option on them in NY. Something like $750 down, plus $350/month for 36 months with a $1 buyout at the end. He said it is easier to evict than to foreclose. In effect, it is the same as the sale, but easier to kick someone out with if need be.

Great point. It gets a bit tricky because we are offering a "mortgage" on personal property not real property (RE) and the last thing you want to do is foreclose on a mobile home if you can do a simple eviction. But you shouldn't have to foreclose b/c it is not real estate. I'll have to ask my attorney about the l/o thing. Thanks Bob

 

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[nomadjanet]

FYI. In my state, if you want the note to be a lien on RE and filed at the court house, both signatures need to be on the document.

IMHO - Get an attorney. Sure, you can find the stock forms online, but you may miss things - and if you find a good attorney the future dividends will more then pay for your attorney fee.

Relationships, relationships, relationships.

Yea, I know each state is different, I just happen to have the Texas one. But the newbie guy said he did not have one so giving him a place to start.

 

[AroundTheWorld]

Yea, I know each state is different, I just happen to have the Texas one. But the newbie guy said he did not have one so giving him a place to start.

nomadjanet,

the beauty of the internet..... miscommunications. I wasn't directing the FYI at you.... just to the community at large - and I thank you for sharing the form you had!