How to sell mobile homes as rent to own

[Robert Bryant]

I am interested in learning how to properly buy mobile homes and sell them as rent to own, in Texas. Any help and information would be appreciated.

Thanks Rob

[Ryan Sajdera]

Folowing

[Autumn Rankin]

John Fedro - he buys fixes and sells them. Frank Dodd might apply and if you are selling more than 1 mobile home per year not attached to land in Texas then you have to have a mobile home dealer license 

[Chase Louderback]

@John Fedro Tagging since I don't think it registered in @Autumn Rankin's post.

Autumn is correct.  You have to be careful about the SAFE act and Dodd Frank.  I'm tagging @Frank Rolfe so he can comment on RTO.

[Jim Johnson]

So- "rent to own" is really financing- so if your selling on a rent to own basis you bust be lender and follow the safe act, Dodd Frank etc... 

Even though there is not a 'security' agreement, it is considered a disguised mortgage. In fact, you would need to designate a part of your payments as interest per the IRS guidelines and that becomes a separate part of the income you must report.

The closest thing is a lease / option. You really should have two separate documents. One would be the options agreement- it says your leasing the home for x number of months. Then it says, at that point you can continue leasing or you have the option to purchase the home. You would probably have that amount pre set. 

This is KEY. The amount can not be 'nominal'. So it must represent what you think a reasonable average person might purchase the property for at the end of the lease term. If you give the house away, or charge some tiny amount, you are back to being a lender and need to follow The Safe Act, Dodd Frank and the IRS rules for lending.

There are other rules in Texas- you really should head to Austin and get your dealers licence. You will also need a bond and to keep up on the continuing education. 

You might try to find a park owner to partner with- you help the park owner by fixing up older homes in their park and in turn they support you in doing your lease options in their park. Win- Win