If it's in a park you (and the person you owner finance it to) will most likely have to apply to stay in the park. You will also want a copy of the rules and regulations of the park that you can get from the management office.
Rental Property Investor · Albuquerque, NM · Member since 2015 · 39 posts · 48 votes
10y
What state are you in? Depends on your state but most states treat mobile homes as personal property, titled like a car, this depending on a number of factors. For example, has it ever been moved since it was set? Check your state. Also, there may be redtrictions on how many you can sell per year, and definitely restrictions on owner financing if you plan on offering that.
If it's in a park you (and the person you owner finance it to) will most likely have to apply to stay in the park. You will also want a copy of the rules and regulations of the park that you can get from the management office.
I am very interested in purchasing mobile homes for cash and owner financing them to buyers. But I have a few questions first.
How does a mobile home sale work? Is it more like a sale of a car or like a traditional house sale?
What documents do I need to do a cash purchase? or the sale?
Is there an amount of sales you can make before you need a license? Do I need to become a dealer at some point?
Do you need to have a previous agreement with the park first or will they just let you keep it there as long as you continue paying lot rent?
Any other advice would be greatly appreciated.
If you are going to owner finance, you are also going to need to be an MLO and licensed as a lender in Texas. Fortunately, Texas is a far easier and less expensive state to do this in than many others. The State of Texas is getting more aggressive about unlicensed lending over the last two years.
I am very interested in purchasing mobile homes for cash and owner financing them to buyers. But I have a few questions first.
How does a mobile home sale work? Is it more like a sale of a car or like a traditional house sale?
What documents do I need to do a cash purchase? or the sale?
Is there an amount of sales you can make before you need a license? Do I need to become a dealer at some point?
Do you need to have a previous agreement with the park first or will they just let you keep it there as long as you continue paying lot rent?
Any other advice would be greatly appreciated.
Joining the Texas Manufactured Housing Association would be a cheap way to get some of the authoritative answers you need.
Regarding a prior agreement with a park or land lease community, it is going to depend very much on the ownership. I, for example, do not allow rentals in my communities of any kind, and I certainly would not let you buy a home in my community and resell it either for cash or seller finance without my prior approval of both you and the subsequent owner. Others, more desperate for "fill" might feel differently.
My company teaches Lonnie Dealers how to run a successful and legal operation. We tell them that researching a community first and then meeting with ownership is critical to their success.
I am very interested in purchasing mobile homes for cash and owner financing them to buyers. But I have a few questions first.
How does a mobile home sale work? Is it more like a sale of a car or like a traditional house sale?
What documents do I need to do a cash purchase? or the sale?
Is there an amount of sales you can make before you need a license? Do I need to become a dealer at some point?
Do you need to have a previous agreement with the park first or will they just let you keep it there as long as you continue paying lot rent?
Any other advice would be greatly appreciated.
If you are going to owner finance, you are also going to need to be an MLO and licensed as a lender in Texas. Fortunately, Texas is a far easier and less expensive state to do this in than many others. The State of Texas is getting more aggressive about unlicensed lending over the last two years.
Michael,
You don't need to get your MLO license. All you would need to do is make sure you use a licensed loan originator to write up your notes so you stay compliant. We found a few companies here in Texas & their fees range from $850-950 per transaction. Which you could have the buyer pay upfront or put the costs into the loan on the backend just like banks do! Before you go get your license in anything you should make sure you like investing in the mobile home industry. You can sell one in a 12 mth. period without a license in the state of Texas. However, you can buy as many as you would like & rent them out if you want to have rentals & you can have a servicing company manage your properties etc. Many different strategies just depends what you are comfortable in doing. Hope this help!