How are the pros owner financing mobile homes in 2019?

4 Replies

I ultimately want to own mobile home parks, but I need to build my capital. I see owner financing of mobiles as a great way to do this, and I recently read Deals on Wheels. At face value, it would seem that the SAFE Act has made doing traditional Lonnie Deals a crime. But I know there are investors out there that are still doing these deals - and legally - only perhaps a modified version. Any advice for a guy wanting to get into MH owner financing? 

BE EXTREMELY CAREFUL. 

I see people doing "Lonnie" deals all the time who don't even know what the SAFE Act and Dodd Frank are. Others tell me that they don't worry about them because the current administration is trying to shut the CFPB (Consumer Finance Protection Bureau) down. But the truth is that you must ALWAYS follow the law and if you don't know 100% that what you are doing is 100% legal, then you should not do it. 

Don't listen to others -- you need to know the law 100% yourself.

This is the best advice. Next to nothing is the importance of following the law.
Originally posted by @Frank Rolfe :

BE EXTREMELY CAREFUL. 

I see people doing "Lonnie" deals all the time who don't even know what the SAFE Act and Dodd Frank are. Others tell me that they don't worry about them because the current administration is trying to shut the CFPB (Consumer Finance Protection Bureau) down. But the truth is that you must ALWAYS follow the law and if you don't know 100% that what you are doing is 100% legal, then you should not do it. 

Don't listen to others -- you need to know the law 100% yourself.

As the Managing Partner of a national consulting company who helped hundreds of Lonnie Dealers change their operations to a legal operation, listen to Frank and the others. This is no longer an inexpensive entry to the manufactured housing industry. Anyone needing referrals to qualified laws firms to help with the legalities may contact us if you are financially able to handle the start up costs and legal fees and we will give you a list of firms we know to be qualified and experienced.

For the Record: Due to my age, we have changed our operation and limited our areas of focus. We are no longer working with new customers on finance issues other than mathematically modeled credit matrixes for manufactured housing chattel lending and in the deployment of our and others money as investors in manufactured housing loans to large captive or related finance companies.