An individual came to me recently looking to borrow $500 and he has a free and clear mobile home. I told him I would let him borrow the money if I could put a lien on his mobile home.
Anyone know exactly how to do this. In addition, this gave me a good business idea. Title loans on mobile homes (you see them all the time for cars why not mobile homes). Any see any potential problems with starting a mobile home title loan company?
Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
15y
Read the books "Deals on Wheels" & "Making $$ with Mobile Homes" by Lonnie Scruggs. It describes this type of investing. No mortgage company will loan against a used mobile home. The only way that many can achieve the American dream of home ownership is by having an investor like yourself available to make it happen by loaning them the money needed and securing a lien against the mobile home.
Investor · Houston, TX · Member since 2008 · 257 posts · 58 votes
15y
Yes, Dustin is it a good idea, I do it myself quite often. Every time a home is paid off I make sure the new owners know I can give them a loan if they want on the mobile home. This way I suck them back in.
In Texas when you file the Title or S.O.L Statement of ownership and location, there is a place to place yourself as the lien holder. So check you local states Mobile Home Title forms.
Real Estate Investor · Austin, TX · Member since 2009 · 171 posts · 46 votes
15y
Dustin, I would suggest consulting with an attorney to determine if this is legal in your state. I had a similar idea last year and discussed it with a RE attorney in Texas. While he didn't say that it would be expressly forbidden, he did have concerns about its legality in Texas. I wound up going in a different direction and did not pursue the issue.
Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
15y
Read the books "Deals on Wheels" & "Making $$ with Mobile Homes" by Lonnie Scruggs. It describes this type of investing. No mortgage company will loan against a used mobile home. The only way that many can achieve the American dream of home ownership is by having an investor like yourself available to make it happen by loaning them the money needed and securing a lien against the mobile home.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
15y
I'd caution about this, Dustin. You may need to consult an attorney on this one. Regarding placing liens on homes, I'm pretty sure the lien may have to be related to the home (i.e. promissory note to home, mechanics liens, etc). In some areas, there are some really strict rules for creditors when it comes to homestead law. Hope that helps!
Read the books "Deals on Wheels" & "Making $$ with Mobile Homes" by Lonnie Scruggs. It describes this type of investing. No mortgage company will loan against a used mobile home. The only way that many can achieve the American dream of home ownership is by having an investor like yourself available to make it happen by loaning them the money needed and securing a lien against the mobile home.
Great book by the way, Ive read all Lonnie Scruggs books. Unfortunately the things that Lonnie did back in his day were great money makers but have been all but made obsolete in this under the microscope predatory lending world that we live in. I tried to do what Lonnie did about 6 years ago and was served a cease and desist letter from the state and county. It sucks because Lonnie was a pioneer with his taking back notes on mobile homes and being a Lonnie dealer inside other peoples parks.
Curious about this process because in order to get a title loan on a mobile home you must first own it and have equity in which to use. I've seen suggestions that a title loan has been used to allow someone to buy a mobile home and achieve the home ownership dream. How is this possible without already having title in your name? The sequence of events don't add up.