MH park rules

I have a couple Q's on park rules and mngrs and how to deal with them.

Most of the parks around here are owner occ. I asked one MH owner if I could rent out the trailer in this park and he was told it was against the law! I called the park mngr and he said it was a park rule. Of course I then asked if I could seller finance it and he said that was leasing and it isn't allowed.

Technically its not leasing right? They purchased the home and I'm just financing it!

If I qualify through the park and buy a trailer, pay lot rent, and follow all other rules then immediately put it back up for sale and find new buyer who also qualifies can they legally stop me?

Some of these park mngrs act like snooty rich people and can be pretty arrogant. What's the best way to deal with them? How can I explain myself so they understand I'm not breaking any rules or laws?

Should I just pretend to be a real applicant who wants to move in permanently?

I also have thought about telling them I'm an investor with a finance company or something but I don't like lying.

Thanks in advance for your thoughts,

John Williams

Edited: 06/26/2010 at 09:48AM

Jim Johnson

Real Estate Investor · Denver, Colorado

147 posts
2247 Influence
4 Awards

Icon_minipost Sep 24 '09, 12:24 PM

Originally posted by John Williams

I have a couple Q's on park rules and mngrs and how to deal with them.

Most of the parks around here are owner occ. I asked one MH owner if I could rent out the trailer in this park and he was told it was against the law! I called the park mngr and he said it was a park rule. Of course I then asked if I could seller finance it and he said that was leasing and it isn't allowed.

Technically its not leasing right? They purchased the home and I'm just financing it!

If I qualify through the park and buy a trailer, pay lot rent, and follow all other rules then immediately put it back up for sale and find new buyer who also qualifies can they legally stop me?

Some of these park mngrs act like snooty rich people and can be pretty arrogant. What's the best way to deal with them? How can I explain myself so they understand I'm not breaking any rules or laws?

Should I just pretend to be a real applicant who wants to move in permanently?

I also have thought about telling them I'm an investor with a finance company or something but I don't like lying.

Thanks in advance for your thoughts,

John Williams

John,
When I was doing lonnie deals I would let the park know I was a mobile home broker and was buying a home in the park. I gave them my card and would tell them the best way to contact me was through fax. No application. I would then sell the home, and you need to transfer title to sell the home. That is the key. Almost every state has laws protecting the home owners rights to sell the home to who ever they please... the park can choose not to allow the home to stay. So you need to tread lightly there. They might require upgrades on the home if it stays.

-- now my other hat--

as a park owner... and I have 4 today, I will add another before the month is over... I never allow rentals, leasing or any of that stuff in my parks. I love lonnie dealers and will let them run wild... no problem. They MUST have the tenants approved, in many cases the homes will require a upgrade... exterior paint, new decks, cut off the tongue, approved skirting, a dusk to dawn outdoor light... depends on the park really. If they move a tenant into the park without being approved, I will evict he home- period. Pre approval is the only option.

Edited: 06/26/2010 at 09:49AM

John Williams

Handyman · Alpine, Utah

42 posts
569 Influence
5 Awards

Icon_minipost Sep 25 '09, 09:37 AM

Thanks Jim,

I'm also starting to think I need to work on my negotiating skills as I dont have much experience.

Can I claim I am a Broker/lender if I dont have any such liscences?

It's kind of a stretch but not really a lie.

Edited: 06/26/2010 at 09:50AM

Jim Johnson

Real Estate Investor · Denver, Colorado

147 posts
2247 Influence
4 Awards

Icon_minipost Sep 25 '09, 12:51 PM

Originally posted by John Williams

Thanks Jim,

I'm also starting to think I need to work on my negotiating skills as I dont have much experience.

Can I claim I am a Broker/lender if I dont have any such liscences?

It's kind of a stretch but not really a lie.

I can not comment as to what you can say... I have always had my dealers license, I read the rules and they stated I needed a license so I got one. I know a bunch of people that skirt the rules... but they probably look over their shoulders from time to time wondering what will happen when they get caught... I tend to comply with the rules... and sleep better at night.
So if there is no dealer law in your state, can you say your a lender... if your intention is to lend on the home... that is a more reasonable statement...

Edited: 06/26/2010 at 09:50AM

John Williams

Handyman · Alpine, Utah

42 posts
569 Influence
5 Awards

Icon_minipost Sep 25 '09, 01:43 PM

What agency did you contact in your state to become a "dealer" are there alot of requirements? If I do lonnie deals am I a dealer?

Edited: 06/26/2010 at 09:50AM

Jim Johnson

Real Estate Investor · Denver, Colorado

147 posts
2247 Influence
4 Awards

Icon_minipost Sep 25 '09, 01:57 PM

Originally posted by John Williams

What agency did you contact in your state to become a "dealer" are there alot of requirements? If I do lonnie deals am I a dealer?

In Colorado I contact "Division of Housing".
To be a dealer in Colorado, you fill out a form, pay some money, get a bond and hang a piece of paper on your wall... I could submit a form from a dog and they would be licensed... I would guess they do not check at all if your real, so you do not even need to fog a mirror or have a heartbeat...

So there are really two dealer answers to your "lonnie" question... you need to be licensed to be a state recognized dealer... sort of like you need to pass a test to "legally" drive, you probably need to be a dealer to sell lonnie deals or hold the paper...
ALSO- your a dealer in the eyes of the IRS... so your gains are taxable as ordinary income. The gain on a lonnie deal are realized the first year...
Buy a home for $2,000- do nothing to it and sell it n paper for $1,000 down and a note value of $10,000... so $11,000 total and you have income of $9,000 so says the IRS. You can argue the note is not really worth $10,000... maybe $7,000... reducing your first year gain to $6,000. Now you have a blended principal payemnt, where part is tax free, and part is taxed as income...

I know I have explained that well enough so no further questions will arise...

Edited: 06/26/2010 at 09:50AM