Contract for Deed Questions
Hi BP community.
I have a MHP in Casper WY. I have a handful of park owned homes that I would like to sell on contract for deed. I would also like to sell the park as a whole but remain the owner on the mobile homes that are on a contract for deed, and collect that income. I know it is not typical and that usually the CFD's or seller finance loans would transfer to the new owner. I don't want to do that for several reasons, one being tax deferral. Any ideas on structuring the CFD's as to where I can sell the park, retain the CFD's and protect the new owner against lot rent default? Any experience selling a MHP and remaining the lien holder/beneficiary of a CFD agreement?
Thanks!
Seen it a few times but I don't have first-hand experience. Basically, you have to put the homes in a separate LLC. You can sell the MHP entity and still retain the homes as a Lonnie Dealer paying lot rent to the new park owner. This setup will chase some potential buyers away because they may not want Lonnie Dealers in their park however there are others who won't care especially if you owner finance the park sale as well. That way you maintain some of the income from the homes as well as payments for the park.