BiggerPockets

Selling a mobile in a park-no land to a young couple, want to finance for 6 years, 7% int., $1500 down, sold as is, pymts. 300 mo., they pay lot rent $300 mo and ins. (policy made to me?) and taxes. SO , Q: which is the best way to sell to them? WHereas , if they default, can get them out easily? Option or land contract? Thanks in advance.

Hi Susan! Guess you have the title to MH. Put yourself on the title as a lien holder and sell it to them. Use a note for the difference. Have them get insurance and put you on the policy as a loss payee. SInce this is not a real estate deal, I'd sell that puppy like I sell my cars. If it were me, I'd try to stack the payments if I could, in other words, have payments that pay down principal in the early periods to establish more equity in the MH for the buyers. I'd move the amortization out a little longer to compensate or a note with a balloon.

For example, have them pay (if they qualify) 400 for 6 months and 350 for 6 months then drop it to 300 for 12 months and so on. If the buyer can afford it, I have devides notes with a front end load so that equity is established more quickly.

You can also do this in an open sale contract with payments to earnest money until a certain amount has been poaid, then do a note and assign the title.

Taking possession with a title is easier than a foreclosure, in most states, not sure what GA says, but, you'll know that. Good luck, Bill