Mobile home on its own lot- Selling MH on terms

3 Replies

I'm in the process of buying a MH on its own lot in Eastern Michigan. I'm thinking of selling the MH on terms and renting the lot to the buyer of the MH. 

Some info on the property: 

- 13x70, built in 1960 in good condition with addition. 

- 5,000 sq foot lot

- The property is currently rented at $400/mth 

Account Closed 

 Welcome to the site.  Buying a mobile home on land is usually a good way to go vs buying in a park.  But with that said a 1960 mobile home is a pretty old home to deal with.  But if the price is cheap and you were buying the package for the cost of the land mainly then it might be ok.  Selling the home to someone on terms puts you in danger of Dodd Frank and Safe Act stuff.  Something you should read up on.  There is tons of discussions here on BP about it. 

Originally posted by @Mark Gruetzmacher :

@Dave C. 

 Welcome to the site.  Buying a mobile home on land is usually a good way to go vs buying in a park.  But with that said a 1960 mobile home is a pretty old home to deal with.  But if the price is cheap and you were buying the package for the cost of the land mainly then it might be ok.  Selling the home to someone on terms puts you in danger of Dodd Frank and Safe Act stuff.  Something you should read up on.  There is tons of discussions here on BP about it. 

 Hi Mark,

Thanks very much for the input. I was wondering how Dodd-Frank might affect that option or whether there's a minimum number of transactions that would be needed to trigger any application of Dodd-Frank. I plan to read up on it more but any insight on DF you could share related to my idea would be much appreciated.

The purchase price I negotiated assumes no real value in the MH, so it's primarily the land I'm seeking a return on.

Account Closed 

  I am not too familiar with them that much myself but there are certain ways to do certain things and be Dodd Frank complaint.  I know it was broke up into about 3 parts, like 1 sale, 3 sales and then more than 3 per year.  Each with their own requirements.  Do a search here on BP and you should come up with alot.  I also ran across a few videos on youtube as well.  I know one thing is you sell you another investor you don;t have to worry and also if you would sell the MH on payments to something but not have the loan secured by the home then you might now have to worry either.  Again, not legal advise, just some things I have read.  Hopefully more people will chime in. 

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