All Forum Posts by: Jim Johnson

Originally posted by J Scott:

Originally posted by Jim Johnson:

You need a promissory note and a security agreement. The security agreement gets filed with the title. The title is held by you until the home is paid off. If they do not pay, you will use 'repliven' to regain the home. Replivin is a fancy legal name for you will 'repo' it...

Jim -

Thanks for the response!

One follow-up clarification...

When you say that the Security Agreement gets filed with the Title, do you mean filed at the County Courthouse or do you mean filed at the DMV?

I guess my specific question is about actually registering the MH in the new buyers name down at the DMV (and paying the transfer tax). I assume I want the sale to be registered ASAP (so he is technically on the hook for taxes, etc), right? If so, who does that?

Sorry about this basic question...

It will depend on your state. In Colorado, the security agreement is filed at the DMV, just the same way you would file a lien on a car. Some states will have you file a UCC agreement, which might get filed with the county... really depends on the state. In this situation your filing paperwork just like a bank would... I call myself a private lender though, not a bank. You do want the papers filed right away. Depending on how your security agreement is written you might escrow to pay taxes, or the new owner might pay them and then send you a copy of the paid receipt. In Colorado, the owner of record gets the tax bill, so they pay and send me a paid receipt. If they do not pay, I get served by the county for past due taxes as the lender, and I ask the homeowner to pay them, or just pay them from a escrow account and then add the fees and taxes onto the loan amount. Sort of depends on the situation.

Remember you must also give the new owner a 1098 for the interest paid each year, and report the interest to the IRS.

You need a promissory note and a security agreement. The security agreement gets filed with the title. The title is held by you until the home is paid off. If they do not pay, you will use 'repliven' to regain the home. Replivin is a fancy legal name for you will 'repo' it...

Originally posted by David Dunnebacke:

I've came across two deals in a 55 and older mobile home park.
Need assistance: To remove the moblie home and take to my property the association requires a 55 or older buyer.(It's not there mobile home only the lot is)..
My understanding is that I going purchase the home from the owner . I give the owner a contract to buy the home and we finish the deal. The home is mine. Now that mean's that I can do what ever I want with the home correct? Can the association stop me from moving my new mobile home to my new property? The owner is a motivated seller and will do as he wish's with the home. those are his words. Need feed back please

Ownership and residence are not the same thing. The park can not prevent anyone from purchasing the home, but might be able to restrict who occupies it. If your planning on moving the home, I would first make sure the home is of the age etc to be able to move. If it meets the required moving requirements, purchase the home and then notify the park you are the new owner. Tell them you do not intend on living in the home, but you will be pulling it off thier property to your own land.
In most states the mobile home act gives the homeowner the right to sell the home to who ever they please, but it also gives the park the right to restrict who is a resident.

Originally posted by mountainjoepa:

Jim,
Do you accept early payoffs? I'm offering a 74 2/1 bath and considering a price of 5,500. I'll have $2,000 in the home. If someone gives me 5k, I'm tempted.

I will always look at a discounted payoff...

Originally posted by Clay French:

I am looking at a property that is about 7 acres. It currently has a house, 5 1br 1bath cabins and a mobile home on it. We think we could easily fit 10-15 trailers on the property (maybe 20) with out tearing down any of the current structures. It is outside of the city and metropolitan planning commission area and as far as we know, there are no restrictions on the land. Where do we start to make sure we can add these trailers if we do buy the property?

The County will have a planning and zoning department. You will probably need to know how the property is zoned, and what the allowable uses are for that zoning. Then you will need to check into infrastructure, like water lines, sewer etc...
A comment- Almost never is is cost effective to build a new park unless your pad rents in the area are more than $350. The infrastructure will cost 7-10 thousand per site, more depending on tap fees, wells and how your getting rid of sewage. Before I would look any further I would have a feasibility study done by a MAI.
http://www.appraisalinstitute.org/
That study might cost $10,000 or more... but you will at least know if a MHP is the highest and best use for the land.

We bought a 4 plex where one of the tenants was working at starbucks via day, and working at a gentleman club at night. She would bring guys home every night for some extra cash. So one bedroom was set up as a dungeon... I guess they could take home a souvenir photo for a few extra bucks... well when she left, on the floor were hundreds, and hundreds of Polaroid photos... We actually had to evict her as the neighbors were upset at all of the 'noises' late at night... any guesses what we brought to court as evidence of the on-goings? Anyway... somewhere in my attic I still have that trash bag...

Originally posted by Kel S:

Just curious for those that are doing rentals, which is your preference? For me I think for the long term I'd prefer SFH just because I think they would be easier to sell if need be.

What about you?

I will choose income property every day. The more units the better. This spreads your damage across many renters. If one, two or twenty do not pay, it might reduce your monthly income, but the loan always gets paid. Income property is also valued on CAP rates, not the same as a single family that is valued tot he rest of the properties in the neighborhood. So to raise the value, I need only to increase the income or reduce the expenses. Once the CAP is applied, my increase is expectantly. The easy calculation is on a 10 CAP property, for every single dollar I increase my net operating income, the property goes up by ten dollars.
If you buy a property and say eliminate $35,000 in yearly expenses, you have increased the value by $350,000. Or, you have increased your cash flow by $35,000 yearly... either way... income property with lots of tenants is my clear choice...

Originally posted by Joshua Dorkin:

I'm looking for any advice that you guys have on dealing with Aspen shooters. I've got a bunch of great Aspens in my yard, but the shooters are relentless.

Does anyone have any tips for dealing with this nuisance?

Josh,
We must have much the same yards. There is a product called 'Sucker Stopper RTU". Its a bit tough to find as its not always stocked at the big boxes (home depot, lowes and the like). You might have to look at a smaller place like ACE or a local nursery. This stuff you clip and then spray this stuff on the shooter you just clipped. It sort of caps it, and its done. I use quite a bit each year and its really bad if I prune a tree. Anyway... it works!
Got to love Colorado... ehe?

Originally posted by Joshua Dorkin:

We want your feedback about what additional features you'd like to see in our BiggerPockets PRO accounts.

We're working on a few things for the future, but we want to know what YOU would get excited about.

Thanks!
Josh :cool:

Josh,
How about a small, templated web site that is attached tot he BP dot com site. A couple of pages we can use to pump what we do, list our properties, have a blog, let people search our posts, maybe it tracks our 20 most recent posts, it might have a wall... like face book does allowing others to post on our wall, and we can reply.
Anyone that sells products, can post them in their 'web site' and it will link to the BP store, letting the products sell through your system. It smaller, personalized sites within the community. You might look into how to keyword the personal sites so they search well with Google, yahoo etc...

Originally posted by Rick Kyall:

Hi Chip and all others,
I am a newbie to this site but I have been a park owner for 15yrs. I currently allow people to do lonnie deals in my park as long as they under stand no nonowner occupants allowed. I also do lonnie deals in the park myself on somme of my older units. I also require a deposit on the lot of $600-$1200. The park owner has to feel that the deal will benifit him to keep home in the park.

I am right on with this post. The title must transfer. As a park owner... it gets complicated when evicting a non paying tenant. Part of the strength of a owners evictions are we can attach a lien on the home for the past due rent... its tricky when your attaching to a rental home...

So I am of this same flavor- no rental homes... I do not rent homes and I do not allow them in my park... all is fair.