I have seen mobile homes as a cheap way to get started in Real Estate for my first few investment properties, but have a few questions before I get started. For the most part all my questions are referring to in-park mobiles. As far as Lonnie Deals, with the new laws I'm curious as to how have other investors deal with this, where would I find mortgage brokers willing to do these, or any ways/exceptions for mortgage broker to not be necessary? If the Lonnie Deals were too much hassle to pay off, would purchasing the property out right and then selling on owner financing be any different? Last question is, how has everybody's experience been with Buy & Hold investing in parks, does the cash flow make up for the higher maintenance costs? If you're buying in a well kept park are the maintenance costs really that high?
- Any known mortgage brokers on board in Seattle area?
-Lonnie Deals vs owning property outright, any difference?
-Buy & Hold advice/experiences in-parks?
-Any other terms, or exit strategies to consider?
Thanks for any help ahead of time!
@Frank Garcia I have friends that have used a local group, QM Solutions, not sure they go to Seattle but I would be shocked if there is not some group like them in that area.
On the Lonnie Deals question I am a little confused. If you are speaking of buying with seller financing I am fairly certain Dodd Frank does not apply. Investor (seller of the home) to Investor (since you are not planning to occupy) financing is exempt. If you are speaking of selling to an owner occupant than DF would apply.
On buy and hold in parks, you need to approach the parks that you are targeting. Some work with investors and some do not. Others will work with investors but do not allow rentals so you have to sell but can sell with owner financing.
Your primary exit strategies are buy and rent (if the park allows) or buy and sell with or without seller financing.
@Jared Rogers Thanks for the response! From my understanding here's an example of what is illegal to do with the Lonnie Deals, I buy from an owner occupied home with seller financing, say with payments of 200 a month, then I turn around and sell it to another owner-occupied with seller finance with payments at 300 a month, and cash flow 100 per month.
Correct me if I'm wrong, but from my understanding in order to make this legal, you would need to go through a mortgage broker and get the seller financing approved through them. I'm asking if there's any exceptions to this, and how have people dealt with it.
So what you're saying is me buying with owner financing from the owner (owner-occupant) is allowed, but the seller financing from me (non-owner occupied) to another (owner-occupied) is not allowed correct?
@Frank Garcia You are partially correct. It is not illegal, you just need to qualify them. That can be with a LMO or you could do a lease option where the rental payment history for a year would go a long way to having a qualified person.
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