Mobile home investing

[Erik Williamson]

I was wondering can you buy mobile homes in California and resell them on payments but not do a personal guarantee on renting the land. Meaning I can set up a corporation and buy mobile homes and not be subject to the land rentals if my sale goes into default. 

[John Fedro]

Hi Eric,

Great job of trying to think outside the box. In my experience most mobile home parks will want a person with passable credit (or better) and a safe background to become approved at the park and also sign the parks rules and regulations and lease agreement. In my experience the park would not let a corporation on the lease alone. However stranger things certainly have happened. 

Additionally, if the sale goes in default and the park has to evict the resident, they may also evict the home as well. This means that if you do not remove the home or bring the rent current than the park will soon own the mobile home. Unless of course you remove the home from the land, in which case you'd probably have to bring the lot rent current anyway. In reality we want to be helpful to a park and want to make the managers life easier, not more difficult. We want to make sure that the lot rent gets paid rain or shine whether we are paid by our tenant-buyers. If there is an eviction that has to be done we are the ones that want to handle it, and not necessarily the park. I hope this helps and make sense.

In short you should definitely do your due diligence before purchasing any mobile homes and make sure there is ample profit in value in it to create moving forward. I hope this helps and starts to point you in the right direction. As always if you have any follow-up questions or concerns never hesitate to write them back and we'll all be happy to help when possible. Keep up the good work.

Talk soon,
John