I'm fairly new to BP and investing in general. I'm setting up to make my first mobile home purchase (no land) but I'm unsure of how the process works. For example, do I use a contract similar to a real estate contract? Do I give them cash and have them transfer title? What happens after I take passion of the mobile home?
Any guidance would be greatly appreciated.
How much research have you done thus far? Have you ready Lonnie Scruggs books? You could just use a contract of sale like this:
But honestly if you've never done it before paying a laywer or an online lawyer for a contract is a good idea! Laws can vary by state. You definitely need a purchase agreement of some sort, don't just give them cash!
Welcome to BP and good luck with your 1st purchase. Not sure how your state does things but most states have titles for mobile homes just like cars and trucks. This is what I would do.
First check to see if you can leave the mobile home where it is located, I assume in a park since you said not on it's own land. Make sure the park will let you leave it there and make sure they are ok with you renting it out if that is what your planning or whatever your plans are.
Second would be to get the sellers name and maybe a copy of the title or at least the title number and VIN number. Call the county treasurer and check on the taxes. For example taxes here are paid a year in arrears. SO if bought today, then all of 2014 taxes need to be paid and in my state they make you pay the year it is bought in also so you would also have to pay for 2015 taxes. So with taxes, the seller should deduct the cost of all the taxes that are to due until the day you buy the mobile home. You can also make sure with the treasurer that there are no liens on the title.
Third I would meet with the seller, come to an agreement on price, and do a basic bill of sale then exchange the money for the clear signed title. Mobile homes are pretty basic transactions just like cars. Again at least it is this way in a lot of states, not sure with CA but call the treasurer and ask.
That is how I usually buy them. Double check the taxes, subtract from the purchase price and do the deal. Always double check with the county office that deals with mobile homes.