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Tag: mobile home park for sale

  • When Will More Mobile Home Parks Be Built In Sarasota Florida?

    We all know how easy it can be to secure a reliable mobile or manufactured home in a leased-land community. However, a challenge arises when it comes to paying for the different mobile home expenses.

    These expenses may include monthly rent, utilities, and moving expenses. For those who have a mobile or manufactured home on private property, property taxes and mortgage loan payments are always necessary. Luckily, there are certain mobile home parks where the landlord or property manager takes care of some expenses.

    With the rise in mobile home prices starting to emerge in the Sarasota Florida region some Buyers are just now starting to get priced out of buying in this hot mobile home market.

    We, here at The Mobile Home Dealer specialize in selling one product, mobile homes on leased land within mobile home parks.

    Mobile home on leased land
    Mobile home on leased land

    When a Buyer buys a mobile that is located on leased land then, in the state of Florida, they are technically buying personal property and not real property as the Buyer does not own the land that their home sits on.

    Generally, your life in a mobile home park will be smooth if you pay your lot rent on time and adhere to the rules and regulations of the park that are found in the park prospectus. Failure to do so, however, puts you at risk of facing eviction from the community.

    One of the few challenges for people buying mobile homes in the Sarasota Florida area is the limited choices due to the lack of new mobile home parks.

    Currently, there are over two hundred mobile home parks throughout Sarasota County Florida, most of which have been in existence within the area since the 1960s.

    Although Sarasota County does not have the most parks in Florida one needs to wonder, will there ever be more mobile home parks built within Sarasota County?

    With the recent rise in real estate prices and the focus on affordable housing now more than in recent years many of the parks in the greater Sarasota Florida area are at capacity and most have very few homes for sale.

    So, then, when will more parks be built?

    We at The Mobile Home Dealer are not urban planners by any stretch of the imagination, however, we do feel we have a solid understanding of exactly what a mobile home park is and how they interact with the county where they reside.

    When we are referring to additional mobile home parks being built in Sarasota County, for this article, we are referring to ones where the resident owns their home and leases the land their home resides on through a monthly payment called lot rent.

    By paying lot rent while owning the mobile home, the resident does not pay property taxes as they, technically, do not own the land that their home is residing on.

    Since the resident is not paying property taxes then the County in which the home resides is not receiving additional tax dollars to fund the County services that serve all the residents within the County.

    What this means is that if a mobile home park has, for example, 100 homes with 2 individuals living in each home then the County is providing services for 200 people who are not paying property taxes to support these city services.

    City services could be public libraries, police, fire and paramedics, public school costs, and a variety of additional services that are provided to all County residents by way of tax dollars obtained from property taxes.

    Most counties want to make sure that every parcel of land is set to its “best and highest use”.

    A mobile home park where the County is not receiving additional tax dollars may not be viewed as the county’s best use if the best use is being evaluated purely on tax dollars generated through property taxes.

    florida mobile home
    Florida mobile home

    Another point worth noting is that if one were to look at the Sarasota County maps prior to all the urban development we currently see, one would notice that many of the areas where the larger parks are built were, at one time rural areas.

    Through the years following the parks being built the areas have been considerably built up with additional residential and commercial spaces leaving very few additional large plats of land needing to be developed.

    Since a mobile home park will take several acres, at a minimum, of land to develop it is not looking like there is any additional land of that size open and available for large mobile home park developments to be completed.

    Will there ever be a new mobile home park built in Sarasota County Florida? We can’t tell for certain but we would think that it would not be the most likely of circumstances based on the points addressed above.

    The lack of new mobile home parks can also increase the lot rent rates in the existing parks.

    The location of a mobile home park also helps determine the monthly rent. For instance, mobile home parks closer to social amenities charge higher rent for their mobile homes. The same applies to mobile homes closer to cities.

    Update: “Avoid new manufactured homes if you want to purchase a property at a lower cost.” 

    The Mobile Home Dealer are licensed mobile home brokers in Sarasota Florida and the surrounding areas. We provide professional buy and/or sell assistance to our clients. If you have any questions, don’t hesitate to get in touch with us by clicking this link. You may also visit our Facebook Page and send us a message.

    This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.

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  • Do Sarasota Mobile Home Buyers Need Seller Financing?

    How does seller financing work and is it a viable option when buying a mobile home here in Sarasota?

    As we have discussed in previous blogs, obtaining outside lending for a mobile home on leased land is very difficult to do.

    Many lending agencies have added additional requirements in order to lend. Some of these requirements are looking heavily at the age of the home, costly inspections that need to be completed, and further scrutiny done by the underwriters even after all this work is done.

    So, what do you do if you want to purchase a mobile home on leased land but do not have enough cash to make the purchase outright?

    In that case, you may want to think about the Seller financing the sale as an option.

    SELLER FINANCING: How it works in the sale of mobile homes.

    Seller financing is when the seller gives the buyer a mortgage, which can help both buyers and sellers.
    Seller financing can be a useful tool in a restricted credit market. This allows sellers to move their property faster and obtain a return on their considerable investment. In return, buyers can benefit from less strict requirements for initial qualification and payment, more flexible rates, and better loan terms in a house that could otherwise be out of reach.

    Sellers willing to assume the role of financial ones represent only a small fraction of all sellers – typically less than 10%. That is because the treatment is not exempt from legal, financial, and logistical obstacles. But by taking adequate precautions and with professional help, sellers can reduce inherent risks.

    The mechanics of financing by the seller.

    In the seller’s financing, this assumes the role of the lender. Instead of giving cash to the buyer, the seller gives the buyer enough credit for the purchase price of the mobile home (not counting the initial payment). The buyer and the seller sign a promissory note (which contains the loan conditions). They register a mortgage (or “trust writing” in some states) with the local public record authority. Then the buyer pays the loan over time, normally with interest.

    seller financing
    Palm Terrace mobile home

    These loans are usually in the short term, for example, amortized at 10 years but with a global payment that expires in five years. The theory is that, within a few years, the mobile home will have gained enough value or the financial situation of the buyers will have improved enough so that they can refinance with a traditional lender, or with cash.

    With seller financing, you essentially have the Seller act as the bank or lending agency.

    The Buyer will make an initial down payment to the Seller and then make monthly installment payments to them over a set period. Many Sellers are open to this as a selling option, as they understand that coming up with an all-cash payment for the full price of a home can often be difficult, especially now with everything that has been going on due to COVID-19.

    If a Seller agrees to hold the note on the home, then they will be the lien holder on the title. Their name will be shown on the title once you make the purchase and have the title transferred into your name. When the lien is finally paid off, then their name will be removed as the lien holder, as you will now own the home outright. This is what is referred to when people ask, “do you have a clear title?”

    Some Sellers will want to add interest on monthly installment payments, just like a bank, whereas others won’t.

    In our experience, we have never seen any Seller enforcing any type of penalty for an early payoff, so, there is no need to worry about that!

    If you default on the loan to the Seller, then they will have the ability to call their note due just like a bank. If the note is not paid in full, the Seller will take the property back over and resell it again.

    Tips to reduce the risk for the seller.

    Many sellers are reluctant to subscribe to a mortgage because they fear that the buyer does not meet their obligations (that is, do not pay loan payments). But the seller can take measures to reduce the risk of non -non-compliance. A good professional can help the seller to do the following:

    Require a loan application. The seller must insist that the buyer fill out a loan application form and must thoroughly verify all the information that the buyer provides there. This includes a credit verification and the investigation of employment history, assets, financial claims, references, and other information and background documentation.

    Allow the seller to approve the buyer’s finances. The written sales contract – which specifies the terms of the treatment together with the loan amount, the interest rate, and the term – must be conditioned to the approval of the buyer’s financial situation by the seller.

    The loan is guaranteed by the mobile home. The loan must be guaranteed by the property so that the seller (lender) can execute the mortgage if the buyer does not comply. The mobile home must be properly applied to confirm that its value is equal to or greater than the purchase price.

    Get an initial payment. Institutional lenders ask for advances to cushion the risk of losing investment. It also gives the buyer participation in the property and makes it less likely to go to the first sign of financial problems. Sellers should do the same and collect at least 10% of the purchase price. Otherwise, in a soft and fall market, mortgage execution could leave the seller with a house that cannot be sold to cover all costs.

    Although cash purchases are by far the preferred method of selling a mobile home, seller financing is very popular and we expect it to grow in popularity for sure over the next year.

    This is Mark Kaiser with the Mobile Home Dealer and we help mobile home buyers and sellers get to a better place in life!

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