Real Estate Agent · Eustis, FL · Member since 2013 · 109 posts · 31 votes
I am buying land with seller financing. I found a mobile home dealer that offers financing for the purchase of their mobile homes. I did a local search and found I could sell the mobile home on the land for $215k - $230k. The area is full of mobile homes so that why I chose that route. Now the mobile home only cost $120k. How do I structure the deal so that the buyer is qualified through the mobile home company and still sell land and mobile home to them for my price?
( I am trying to to avoid buying the mobile home myself if possible)
Investor · Willis, TX · Member since 2014 · 245 posts · 124 votes
5mo
This is actually a really good question. This is what I think based off my experience.
There are a few issues I see:
1. If you want the most out of the deal, you're almost inevitably going to have to buy the house as well.
2. If you owner finance the lot to the end-buyer as well, then they have the option to go to the mobile home dealer and get whatever the price the dealer gives them. I don't think the mobile home dealer cares if it is you or them, the price at their store is the price at their store. You can "max out" the land but not the house.
3. If you buy it, yes, you can charge more for a few reasons... you'll have to figure out connecting clean water, waste water, HVAC and electricity to the house. In order to "compensate" you for the effort, you can obviously charge full retail.
4. Most mobile home lenders are VERY specific about how they want the house installed and it must be done by the home's manufacturer or they won't want to lend on it. The traditional 30-yr lender obviously won't fund the deal unless the house is in place with all the systems passing inspection.
What I have done in the past is just pay for everything myself, get the house delivered, appliances... turn-key everything and then list it for sale on the MLS as a turn-key deal. CALL a mobile home lender to get their requirements so you can be sure to satisfy them as you go along the process.
Real Estate Agent · Eustis, FL · Member since 2013 · 109 posts · 31 votes
5mo
@Juan Cristales thank you! I did go to the mobile home dealer and they do have a lender they consistently work with. I decided to have the buyer qualify with their lender and treat the builder as a showing agent. Since the physical place is over 80miles from the site, I will hold zoom meetings with clients and builder.