We’re back with part two of our take on legitimate MHP Listings. You can catch up on the previous entry here. We left off discussing the nature of wholesalers and how it’s good to view these deals with a skeptical eye. Some wholesalers are good, some are bad, but the vast majority simply don’t know.
Dealing With Wholesalers
They’re flying by the seat of their pants. They don’t know what they’re getting into, and they don’t know what they’re getting you into. They’re trying to make a fee for flipping a deal without actually having to come out of pocket.
Some wholesalers will find someone with a park for sale, and lock them into a contract. They do this having put no money into the game. Then they try to flip their contract to someone else, close the park, and incur an assignment fee in the process. While they’ll get an easy payday, the time and due diligence it takes you to follow up on these leads is generally not worth your effort.
How To Avoid MHP Scams
The truth is, the more you work with professionals on MHP listings, the less likely you are to get scammed. Also, make sure you are fully aware of the condition of any park prior to making any moves on it. Be sure to have it accounted for in the risk assessment of the deal.
Another thing to be kept in mind are Lonnie Deals. This is when a dealer brings ten to twenty homes with tenants to your lot. The catch is, the dealer may pull them out at any time. This leverage can put you in a poor position if you don’t have tenants on a waiting list. It can bankrupt you, and even cause you to lose your park altogether. It’s less a scam and more taking advantage of you not knowing the ins and outs as a novice buyer.
Working With The MHP Expert
If you’re dealing with above the board brokers, you won’t have to worry about any of these concerns. There’s titles, documentation, and coverage that keep you in the clear.
Have more questions, or need more help navigating the MHP Industry? Contact The MHP Expert Today. You can check out the various ways we add value to our clients on our Services page, here. We look forward to hearing from you!