We are new investors, and have not done enough research on Mobile homes. Here’s the deal. A person that I do not know, or have even met, is looking for someone to put a mobile on his property and finance it back to him.
He’s got good mortgage and rental. I really need the cash flow. What are my rights if the home is on his land? I would finace it that way, due to out of pocket expense.
If he does not pay, can I reposses on someone elses land?
I would really appreciate help.
Thank you!
Blondie…
This sounds like a bad idea.
Buy the land, and put the home up. Have it as a condition to the sale a lease for the owner with the terms drawn out… much cleaner than a leasehold interest of a mobile…
Next, I’m currently doing residential financing in Florida. As you can imagine, Florida has plenty of mobile homes.
Getting financing on a leasehold interest of a mobile is near impossible. You actually have to get automobile financing… which incidentally can be a 5 yr am period killing your cash flow…
You and your hubby should buy a small apartment building with the cash you have… get 80-90 financing. He fixes it up, and you manage… great combination.
Good luck,
Starke
Thank you for the reply=)
We do have cash to buy one, do you think its still bad? I was thinking… buy a double wide for 10k, fix it up and sell it to him. I just want to make sure that if the payments are not paid, we can repo, if he’s financing the land through someone else.
Please advise again…
Blondie,
This is a bad idea. You would have to put a mechanics lien on the land, and since it is financed through someone else you will be in second lien position. In short, if the house goes into foreclosure the land will be paid off first then you get what is left over.
A 10K double wide is not a bad price…
:o :o :o I never thought that I’d say that :o :o :o (I’m from up North, MH’s are a little less common, but now in FL)…
There sounds like there is a little hair on this one… just doesn’t sound very clean. But if you are getting a good return, it might be worth the risk.
Right now… you’re in the drivers seat. Hands down. No doubt about it… with cash available to invest in a slow market… people need buyers and are discounts are out there…
I’d take your time and really investigate if this is one that you want to proceed with… if you pass, this oppty will probably be here for time enough to compare this opportunity with other options…
Hey, your in property management… ask one of the owners if they will JV with you on a small apartment building. Shoot for a 8 unit building… good starter size.
Especially if you are new investors… keep it simple as a starter…
I have sold 5 mobile homes all in parks and the rate of return is tremedous!!! In my opinion the cash flow is much easier to attain then buying a duplex or SFR as a rental. I buy the older homes for about 1-2K up here. Fix them up if needed and sell them on a land contract, also known as a promissary note, for 7-8K and great terms.
The same process can be used for MH’s on land. Buy it, fix it up, and sell it on a land contract and enjoy the cashflow. If he owns the land thru a bank or lender that’s fine. Your concern should be the actual mobile home which is considered private property. Getting that home back is not that hard as you would go thru the circuit court and go for an eviction. BUT…if the home is anchored or attached to the land then you have issues. Cause then its considered actual real estate. Then that home should be on the deed, title work, etc. What happens if you have to repo the home but its not attached to the land? Are you gonna get nabbed for trespassing cause your on someone else’s property? This could get scary. Its gotta be an all in one deal to protect yourself. You have to have control of both the land and the home in order to make it work for yourself…and to sleep at night 
Good answer Nate. You do know about mobile homes.