All Forum Posts by: Jim Johnson

If you sell a mobile home on a note, let's say you have $3k in the property and you collect $1k down and a not for $6,500, sales price is $7.500, do you pay the complete sales tax immediately or wait till the note is paid off? If you pay the lot rent but charge the buyer, does this change anything as far as taxes?
If this is the case, should I transfer title with a lien or keep in trust until note is paid off?

Also, on a lease purchase, 5k down, 300 month for 3 years with 2k balloon, all goes towards purchase price of 16,500, interest rate is 12. My accountant says this should be taxed like rental property? Does the option amount get taxed differently?

Anyone have any good websites or places to look for updated listings of mobile home parks or mobile home park owners?

A couple friends and I are going to be purchasing a MH soon in the form of a Lonnie Deal. I know almost everything about the deal other than getting out there and doing it ;-) (So I've probably got about 40% of the info down lol)

Anyways, we will have liability insurance on the LLC, but what about the mobile homes? Do we require the buyer to pay for it?

I have a friend who is an insurance agent and he could probably structure the deal up so that I could just have it with me at closing and work it into the note that if they don't have insurance then they lose the home.

Any advice is appreciated, thanks.

Here's another +1 on appreciating the generosity. I am still very new in this business and it is refreshing to encounter someone who so readily shares knowledge--with no fuss involved. If you ever layover in ATL Jim, I have a homebrew (or 5) with your name on it. I have an organic red ale that is maturing nicely and already tastes incredible . . .

Who do you use for credit and background checks?

How much do you pay?

Jim,

You right its a little park, but I have after the purchase in Cleveland only $10-12k left and a mobile home park for approx $8,5k out of pockets is attractive.
I looking now in Ohio or Indiana/New York in this week.

-Uwe

Thanks for your advice guys.

Jim-
The airport is 10 miles away, thats not a problem, but I live in Germany today, that can be the problem :).
To your last questions, a property manager works for the current owner (they live in NC), he owns the park since 5 years, a note is on the park with $37k, this is why the owner doing a lease purchase. The note rate is $379 monthly I negotiate with the price today he is willing to go to $85k and $758 monthly rate. The mobile homes owned by the park. So the park is operated as apartment complex. In Cleveland I can buy a 8 unit building and a 7-8 unit park is really good for add income.

Bud-
Yes the negotiation is promising. To your questions:
1. 5 years.
2. approx 15,000 sqf (190 x 78).
3. Yes, the other half of the payment ($379).
4. Short, yes.
5. Only hold, rent, hold, rent, improve and so on.

It helps thank you :). The park lies between Greenville and Spartanburg.

-Uwe

I found an ad for a MHP in SC at another REI Forum, this is the ad:

" We need to move this property so that we can invest in another opportunity. It's a Mobile Home Park in SC. It needs some work but has the potential to bring in about $3k. It has some cash flow now! Here are the details:
will Finance....No credit Check, No qualifying
Purchase Price: $95k Down Payment: $3500
Monthly Note: $995.00
We will do this under a lease purchase.
We NEED to move this and close on it no later than two weeks "

I wrote with the seller and its an 8 space park with possible 2 more. 7 spaces with park owned mobile homes (rent $350) and 1 vacant space.
3 of the mobile homes are rented, 4 vacant. These 4 mobile homes needs approx $5k for repairs. There is a waitlist for the vacant homes said the seller and the lease time is for always for 1 year.
GI is $29,4k with 100% occupancy, the NOI should be $17k.

Is this an rentable MHP? The price is negotiable and the monthly lease rate too.
If I buy the Cleveland Mixed Building I still have some money for that scenario. Only these properties be 600 miles apart.

-Uwe

Thanks for the forms! Maybe I can repay (steak?) you when you are in Ft Worth next month.

Wow Jim you are nice, I sell my forms. Then again I had mine drawn up by a lawyer. I paid so I don't give them out from free.

I sold 3 tonight to one of my focus group students.

Especially my rental agreement, It would make your mouth drool.