I was wondering if it was possible to buy mobile homes in various parks by paying unpaid lot rent ? Also could I treat this similar to purchasing a tax not and eventually repossess the property ?
I’ve purchased many mobiles in parks to flip without paying the back space rent.
The former tenant owes the money and the mobile is chattel, not collateral.
I’ve also purchased many mobiles in parks without the approval of the management. Hint - you have to ‘qualify’ to LIVE in a park but you Don’t have to ‘qualify’ to OWN a home in a park.
If you handle it correctly the park will most likely do business with you again.
There are a lot of fine points to being successful in the mobile home business that don’t exist in regular real estate.
The fact that most investors don’t ‘get it’ and will never bother to learn has kept the business extremely lucrative for the few of us that have figured it out :)
I was wondering if it was possible to buy mobile homes in various parks by paying unpaid lot rent ? Also could I treat this similar to purchasing a tax not and eventually repossess the property ?
Some things are going to vary from state to state. In some states community owners have the right to reject payments from parties they have no contractural relationship with.
Some things will vary from community to community. Some communities may welcome your payment of back rents, others may not especially in states where they can reject your payments. Many communities have the right of first refusal on the sale of a home that can also block you even in states where they might not be able to block you paying back rent.
In addition to those worries is the worry of back taxes.
There is also the issue of if a lender is involved. Any lender is going to take a very dim view of you trying to steal their collateral unless they are content to abandon their lien.
The best advice I can give is to talk to all parties and make sure they are OK with your plan first before you pay out any money to anyone. The next advice is to make sure the home is not substancially damaged in some way that is not easily seen.
What you are proposing does work in some states and in some communities provided back taxes and lender liens don't get in the way, but not in many communities or states.
No....back lot rent doesn’t translate into owning the mobile home.
I think what he is proposing is that some really run down parks will give up their abandon home rights in return for clearing up the back rent and a promise to rehab and sell the home to someone else approved by the park as the new owner with the hope they will perform better than the previous tenant who fled and abandoned the home. In some cases the park may just want the home out of the park and expect him to move it out.
In some states, the abandoned mobile home acts make this possible but not in most of them.
This is not a program for the inexperienced who have few or no connections, nor is it one for anyone with any real money to invest.