All Forum Posts by: Ken Rishel

Might I suggest you search on here for seller finance? There are many legal issues you should be aware of.

In Arizona specifically, you would need to be licensed as a mortgage lender and would need an employee who was a licensed MLO. The MLO could be you and the lending license in Arizona is fairly inexpensive and fairly easy to achieve when compared to many other states.

However, to be licensed as a lender you will need a robust compliance management system to fulfill both federal and Arizona regulations. That will not be cheap.

In some states what you originally proposed can work, but the servicing can be legally more complicated that some MLOs will tell you.

I would recommend George Allen's books: Manufactured Home Community Management and How to Find, Buy, Manage, and Sell a Manufactured Home Community as truly objective works.

That said, if you really want to "own a parking lot", run away from owning communities. As a (now retired)  managing partner of nationally recognized consultancy in the manufactured housing industry I cannot tell you how many people we have worked to save from ruin who got into our industry in the late 80s or the 1990s when it was fairly easy who were on the rocks after 2000.

Owning manufactured housing communities is extremely lucrative for those who know what they are doing and are willing to work very long hours to make it happen, but even for those who have the knowledge and expertise, it isn't easy and the need to constantly learn new information is constant. 

With the election of Biden for example, the Consumer Financial Protection Bureau is about to come out of hibernation and all of the plans they had before Trump took office will come off the back burners which will have a profound effect on the viability of manufactured housing communities. When Ben Carson leaves, HUD, they will return as enemies of the whole MH industry. Community owners will need to adapt and learn expensive new solutions to just survive.

The owners who know what they are doing and who invest in new knowledge and strategies will do just fine and likely profit from buying out those who don't have what it takes. This won't be the first, or the last, time this happens.

I hope this warning helps.  

Talk to State Street Properties out of Jackson. They are the largest community owners in the state and I think they also offer management services as well.

This is a very complex question and, so too, will the answers be equally complex.

You need to talk to a specialist in this type of insurance. Try these:

Stanford & Associates Hinsdale, Illinois 

Mobile Insurance The Woodlands Texas

King Insurance Services San Juan Capistrano, CA

These are the largest and most experienced in the industry. Stanford was always my agent from Florida, to Illinois to Oregon.

Burbach & Associates, Inc James R Burbach, MAI is Texas based

My favorite and trusted source: Bruce Nell MAI, MRICS, MICP at Colliers International

If I were looking at it, I would also consider the additional costs that HUD has created with their new rules and regulations on setting homes. I would also be aware that electric service may well need to be upgraded to meet modern demands.

You should also be aware the ARC cut a lot of corners whenever they could get away with it. You might run into some real surprises.

The advice from Rachel is spot on. Every state has different laws, rules, and regulations regarding leases and other forms. You cannot depend on generic forms. Nancy at the NY Association is one of the top state execs in the country and the NY association is very well run and a great value for community owners.

Yes. The question of if it is a good idea depends on the property management company you hook up with. Some are great and some are almost criminal. 

Who is available depends on the size of the community and the geographic location.

Unfortunately in Illinois it is much more complex than just paperwork. Dealers of both new and used homes must have a physical location with regular hours and manned phones during business hours. Non community owners need a different (and stricter) license than community based retailing. Illinois laws regarding retailing just changed after years of negotiation between IMHA and the Illinois Secretary of State so old rules no longer apply. Street dealers and community based retailers ended up with considerable relief, but for those who used to sell a few homes to consumers must have a manned physical location with regular hours. There are also complex rules regarding titling and sales tax. 

Again, I suggest contacting the associations and joining for help. It will be a whole lot cheaper than hiring a qualified law firm for guidance.