[Garrett Humphrey]

Garrett Humphrey

I buy and sell mobile homes on land and in parks. I get a lot of calls from people that have purchased newer mobile homes with high balances that want to sell. Most of the time the payoff exceeds home value and high-priced homes don’t sell well.

Is there a way to monetize these deals that I’m not considering?

Thanks in Advance!

Garrett Humphrey

[Bill Cook]

Bill Cook

Garrett,

One way is to do a Performance Master Lease. Let’s say the owner’s trailer payment is $800. Lot rent is $500/month. It will rent for $1000/ month.

As a landlord, let’s say you want to make $200 per house to handle an owner’s problem property. You rent the trailer from the owner for $300/month. You agree to pay the $500/month lot rent. This means you are paying $800/month. You rent trailer to your tenant for $1000 and pocket the $200/month spread. You make it a PERFORMANCE Master Lease which means you pay YOUR landlord $300 and lot rent $500 ONLY AFTER your tenant pays you.

Another way is to call the lender to see if they’ll accept a discounted payoff, or that they’ll modify the note to a much lower balance with much better terms and allow you to assume or take subject to.

Hope this helps.

Bill Cook