All Forum Posts by: Jackie Lange

 Just because there have not been any prosecutions yet, does not mean that there are not any in the works.  There are. 

 I certainly would not want to be the test case selling lots of mobile homes by selling the beneficial interest of personal property trusts to try to circumvent the law.  Pleading ignorance does not count.  Pleading that "the course said I could do it" does not count. 

The courts like to set examples with stiff fines or even jail time for violators of new laws.

And now that they offer rewards/incentives for whistleblowers who report possible Dodd-Frank violations, I would not want to venture in to the grey area.

 Sure Trusts are legal if you ONLY do ONE deal per year.

If you do more than one deal in a trust it is not legal.  

If you use different trust names to try to circumvent Dodd-Frank rules it is not legal.  

The Dodd-Frank rules specifically state that you can sell ONE property per year if it is owned by a trust. That's any kind of trust including a land trust or a personal property trust.

If you sell more than 1 property per year as a trust, or sell the beneficial interest of the trust more than one time in a year, you would be violating Dodd-Frank.

You could argue that selling the beneficial interest of the trust is not a sale.  However  if the person gains occupancy and has an interest in the property because of the transaction, it falls under the rules of Dodd-Frank

Using different trusts names to try to circumvent Dodd-Frank is illegal because it is an attempt at circumventing Dodd-Frank. This is especially true when the beneficial owner of the trust is the same person/entitity owner for all trusts. Any attempt at circumventing Dodd-Frank is considered illegal.

There's a right way, and a wrong way to sell mobile homes with seller financing.

Selling the beneficial interest of personal property trusts with different names is not a viable solution and would be considered illegal. The law says you can sell 1 property per year if it is owned by a trust. period.

I got this information from TWO different lawyers. One is the lead attorney for the Texas Department of Housing and Community Affairs which handles all rules for buying and selling Mobile Homes. 

The 1 property in a trust law applies nationwide, not just Texas.

Now that is not to say you are limited to 1 mobile home deal per year. Only 1 mobile home deal per year if it is titled in a trust.

 If you sell any non-owner occupied property with seller financing is does not fall under the Dodd-Frank guidelines. 

The person on the mortgage need not be involved in paying off the loan.  

When you buy the house, you should get a Letter of Authorization to contact the lender. It will have the seller's loan information, their birthday and their social security number.

When you order a pay off you will need the information in the letter of authorization.  You will also tell them the pay off date.  You can use the lenders automatic phone system to order a payoff be faxed or mailed to you. Get it faxed. it is faster.  You will usually get it within 24 hours.

The payoff letter is given to the title company, they take care of paying off the loan and dispursing any difference in the sales price to you directly.

The seller's Power of Attorney is not needed at closing.  YOU own the house or your Trustee for your Land Trust can sign.  The seller is not involved at all.

I hired an attorney who is knowledgeable about mobile home investing and Dodd-Frank to write a detailed report about selling mobile homes so you comply with Dodd-Frank.  

Some are promoting buying in a personal property trust then selling the beneficial interest of the trust (instead of selling the mobile homes itself), the report explains why you CANNOT do that.

The other important thing to take in to consideration with mobile homes, is that you need to comply with Dodd-Frank and the SAFE Act rules for your state, but you also need to comply with any mobile home dealer's rules in your state too.  

I got my mobile home dealer's license in Texas. It is a boring 3 day class.  Showing up on time in the morning and after lunch are the most important acpect for passing.  

If you're going to do mobile home deals, understand that there are rules beyond what you read in some slick course.  And the rules are state specific. 

You don't want to be the first one caught breaking the rules in your state.  

The new report is not retreading old ideas about Dodd-Frank, 

It is clearing up a lot of misleading and false information which is prevelent on BP.  

The report was written by a real estate attorney who is very knowledgeable about mobile home investing and Dodd-Frank rules.

It explains how you can do more then 1-3 deals a year - legally.

It explains why you cannot buy in a personal property trust then sell the beneficial interest of a trust (which is promoted by some at BP)

It clears up the confusion about what interest rates can be charged and what can and cannot be in the advertising.

And it explains the solution(s) if you want to do a high volume of mobile home deals and still stay compliant with Dodd-Frank

There is still a done of opportunity to do Lonnie Deals, they just need to be done differently.  

You just order a payoff from the existing mortgage company to pay off the underlying loan. 

You'll need to get a letter of authorization from the owner of the property with permission to contact their mortgage company.

A payoff can be requested without taking to anyone.  Lenders have an automatic phone system for ordering a payoff. 

Or, you can give the letter of authorization to the title company so they can order the payoff.

I live in Central America, in Panama.  There is HUGE opportunity with very little competition for marketing and for real estate. 

Direct marketing is not possible in Panama because we have NO mail delivery service to any house.  Heck, most houses don't even have an address in Panama.  Does Columbia have mail delivery service?

It is shocking how many businesses don't even have a web site.

You'll also save a lot of money living in Central or South America.  On my Panama web site, I wrote a blog post about the many ways you can save money but I cannot post it on this web site without getting the post deleted.  

My suggestion is to spend a month in Columbia before you make a decision to move.  

When Dodd-Frank became law in January 2014, it changed the way mobile homes could be sold with seller financing.  Lonnie Deals can still be done but they need to be done differently.

I hired two real estate attorney's to write a special report about the NEW Rules for Selling Mobile Homes With Seller Financing So You Comply with Dodd-Frank.

The new report is available at www.LonnieScruggs.net

You'll learn 

> What Interest Rate You Can Charge
> How Many Deals Per Year You Can Do
> When to Use a Mortgage Broker
> Qualifying Your Buyer
> Advertising Rules
> Why You Cannot Sell The Beneficial Interest in a Personal Property Trust
> Everything You Need to Know about Dodd-Frank and the SAFE Act
> Consequences of Violating Dodd-Frank
> What You Don't Know Can Hurt You - Get the Facts with This Report

Combine the information is this Special Report with the information in Lonnie Scruggs' books Deals on Wheels or Making Money with Mobile Homes to learn how to create cash flow by selling older mobile homes with seller financing.