Unpacking Your Exit Strategies - Owner financing or Land Contract

This option creates an income stream from the sale of the park to the seller. There is typically interest and principal payments that allow for passive a income stream from your mobile home park investment. The upside to this option is the long term income from the sale of the park. In most cases there is not a significant income drop from park ownership to carrying the financing. This is a great option if you do not need the lump sum cash and current interest rates are triple those a bank gives in a checking account. The downside is the active income that is taxable at the personal income tax rate (interest charges). Your park will sell much faster and for a higher purchase price if you are open to this option. If your park has high vacancy, is valued at less than 1 million dollars or has a high ratio of park owned rental homes this option is one you really need to consider. Your purchase price will be better than if you only accept a cash sale.