BiggerPockets

I'm fairly certain I read somewhere that people sell mobile homes on lease options, aka Rent-to-Own. My question is how do you structure this deal differently than using a lease option to sell a SFH?

I just ordered two Lonnie Scruggs books and should be receiving them soon. I apologize if he covers this in his book, but I wanted to ask the question before it slipped my mind.

Thanks in advance,
Mike

Yes, I think Lonnie does touch on this a little in his books - reading his books is a good start :D

It's basically structured the same as any rent to own - they may payments to you for x amount of months and can purchase/have an option to buy during that time period. Just be sure to check the laws in your area to make sure you're in compliance with the laws. Hope that helps!

Here is how I do this. It has been challenged in court and we win every time. Over 300 Single family homes are under this same contract right now. This is 100% legal

I have a very aggressive Lease Contract that put all the repairs maintenance etc on the tenant. Even the Home Owners Association Dues.

My security deposit is Large about 3-6 K.

43. ADDITIONAL PROVISIONS: Tennant may purchase XXXXX Kenswxxx Meadows Humble, TX 77338 any time during this lease for $_125,000.00 to be paid in cash on the closing date. 06/30/09 Provided the tenant was not in violation of the lease agreement stated above. Mystic Realty will not pay any of the closing costs involved with the sale of the home.



Tennant agrees to pay Mystic Realty the sum of $ 4,000.00 Security Deposit, which will be applied to purchase price of the Property if closing occurs. $3,000.00 of $4,000.00 has been received. Of each monthly rent payment of $1125.00, the sum of $1,125.00 shall be considered a non refundable monthly lease payment..


In the event that TENNANT is in possession of the property described above under a valid lease agreement at the time of purchase $ 100.00 of each monthly rent payment received on or before the 1st of the month under said lease will be applied as additional consideration to reduce the purchase price if, and only if, tenant obtains financing to purchase this home. No payments received after the 1st of the month will be applied. All covenants of said lease agreement must have been faithfully performed in order for this to be valid and enforceable, including, but not limited to, the repairs, maintenance and upkeep of said property. In the event that the TENNAT substantially defaults on any payments or other obligations required under said lease, the purchase will be automatically void and any monies paid there for rent or deposit will be retained by Mystic Realty as liquidated damages and not as a penalty. A "substantial default" includes, but is not limited to, failure to make any lease payment by the 4th day of any month for which rent is due.


Also Mystic Realty agrees to reimburse the total cost of ACADEMY CREDIT for your credit repair at the time of xxxxxx Kxxxx Meadows purchase if you become active within the first 2 months of this lease agreement. Please be sure to tell them I referred you so they will inform me the day that you joined their services. If you do not I will have no record that you joined their services and I can not pay you back. Client # xxxxx [WEBSITE REMOVED]. [NUMBER REMOVED]

$3000.00 of $4,000.00 Security Deposit is received. Payments will be a Minimum of $1,292.00 July-December 2008. Commencing Jan, 2009 payments will drop to $1,125.00

3k - 6 K depending on credit and rental history.

While Lonnie is no longer in the mobile home business day to day, he has never taught how to structure lease options. Lonnie likes retail installment contracts because they are tighter and make the buyers feel more like real home owners vs. renters who will trash the property.

Yes we hold titles. The title are processed into the buyers name w/the seller listed in the 1st. secured lein position. We also keep a signed Power Of Agent on hand that is part of the regular paperwork. This allows us to take care of any necessary title work to re-sell the home. Dude-you need to get and read the book(s)! I assumed you had read it since you have made comments about Lonnie Deals.