Mobile Home Leads Wants Title Loan- Does not want to sell MH

Mobile Home Leads Wants Title Loan- Does not want to sell MH

Real Estate Investor · Fort Lauderdale, FL · Member since 2016 · 49 posts · 6 votes

We have a lead that is looking for a Title Loan against his 2009 double wide mobile home he owns.  He does not want to sell it.  He owns a lot for a single wide mobile home, but needs a larger one to fit the double wide trailer.  The trailer is currently parked in his backyard.  He told us that his double wide recently appraised for $36k, but he would consider $20k for it (that is the loan amount he would accept against it).  He wants funds to purchase his own space big enough to sit his mobile home on so he does not have to pay lot fees at a park. 

I am very new to mobile home investing, so I'm not sure of all of the options that may be available to help him.  Do we instruct him to find a private money lender, because we don't have enough capital for him at this time?  Do we find a park that has a space for him and negotiate a deal for him to pay it off in installments?  Do we advise him to sell his single-wide spot in the park and use the funds to purchase land outside of the park? Do we tell him to lease out his spot (if the park allows) and use the money to help him make payments on the land he's looking to purchase?

Any advice from mobile home experts would be GREATLY appreciated.  We would really like to help him find a win-win solution.  Thank you. 

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  • Real Estate Investor · Fort Lauderdale, FL · Member since 2016 · 49 posts · 6 votes
    9y
    Clarification: The small lot he owns now is NOT in a park.
  • Glendale, CA · Member since 2016 · 4 posts · 2 votes
    9y

    If I understand it, he wants a title loan against his current mobile home so that he can buy a bigger piece of property to move his home to? So you would just be carrying a note for him with his MH as collateral, or are you trying to find him that piece of land, too?

    My concern would be that if he defaults and you have to take his MH, what are you going yo do with it if it's on his land. If it's mated to his own land, I don't believe those can be moved, and then you own a MH/land in the middle of someone else's acreage. Sounds worthless to do anything with. How will you make your money back if he defaults?

  • Real Estate Investor · Fort Lauderdale, FL · Member since 2016 · 49 posts · 6 votes
    9y
    Al Kokshanian Good point. I didn't think of that side of it. And no, we are not planning to find the land for him. Because we don't have the capital available right now to give him the loan ourselves right now, we really just want to try and counsel him about viable options that could help solve his problem. We don't want to leave him without a solution just because he doesn't want to sell his MH to us.
  • Glendale, CA · Member since 2016 · 4 posts · 2 votes
    9y

    Ah, I see. Well, that's too bad you can't carry that note! Only you know your market, the mobile home in question, and its location, but if you'd pay 20k for it, it's a good deal: best case you get pawn shop interest on 20k, worst case you get a spankin MH for 20k. 

    There's a reason that a conventional lender won't use his MH as collateral, so his options are very limited. I think even most title loan brokers won't give him that much of the value in a loan because they simply don't know what to do with a repossessed MH. Sounds like a great opportunity for a private MH investor who does know what to do with it, but I think hes going to need someone who will know what to do with the collateral, like a mh wholesaler or such.

    I'm not an expert, but so much of the actual value of a MH, like what someone will actually pay for it, can be very case by case. That's why you sometimes see ones (in parks, at least) too bad to live in or sell, but too expensive to move. It's a home, but effectively worthless. 

    Hope this helps, but I hope you can find a solution for him. Best of luck. 

  • Real Estate Investor · Fort Lauderdale, FL · Member since 2016 · 49 posts · 6 votes
    9y
    Al Kokshanian Thanks for the great advice!
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