November 20th, 2024
Community infill, upgrade, value-add, increase cash flow and value. Easier said than done! Street retailers are placing homes elsewhere. Chattel lenders want higher credit scores or longer employment histories. Alternatives? Consider selling new manufactured homes in your community via Lease-With-Option-To-Purchase (L-O).
In keeping with SECO’s MH2X initiative to double 2025 production of manufactured homes by encouraging community owners across the country to buy and sell new homes to fill vacant sites and upgrade their communities, SECO is conducting another workshop with everything you need to know about selling new MHs via L-O – a dozen speakers including COs with hundreds of L-O transactions and 20+ years of experience under their belts, L-O attorney, spreadsheets, templates, documents, & files, examples, lending introductions, community tour, & networking – all for one low 501(c)(3) educational price!
FREE & Optional Visit to American Commerce Bank & Community Tour, where 25+ NEW MHs are sold annually, on Nov 21.
Click Here To View The Agenda
Highlights:
- 1 day, live, 8 hours, hands-on workshop in Atlanta, Ga.
- Focus on NEW MHs in communities (supporting doubling MH production in ’25)
- Heavy computer usage (use of spreadsheets & documents)
- Multiple speakers covering all aspects of new MH purchase, installation, sales, & financing
- Optional 2nd day visit to an Atlanta area MHC where 20+ new homes are sold per year for upgrade & infill
- $175 pp covering workshop, worksheets, documents, coffee breaks, box lunch & MHC visit
- All proceeds to speakers, travel, & SECO veterans & first-responders fund (501c3)
- Limit of 40 attendees to ensure interaction and training. Additional workshops to follow.
Topics:
- Benefits of siting new MH (not least of which is IRR)
- IRR of filing a vacant lot or replacing existing MHs
- Increase in MHC cash flow & value
- New MHs vs. used – moving, relocation, rehab, resident demographics
- SW vs. DW MHs
- Renting vs. Selling
- Lease-Option vs. Conventional financing
- Lease-with-Option-to-purchase (L-O) - seller "financing"
- Qualified legal basis of L-O (avoid mortgage origination, not RTO)
- L-O terms – option payment, lease payment, option price
- Structure of a Lease-Option transaction
- L-O example
- L-O contract
- L-O Info (assist with composition of contract)
- L-O defaults – frequency & costs
- Cash flow of L-O transaction
- Spreadsheet to structure transaction (local rent comps, zip code data)
- Converting L-O to conventional financing
- Conventional MH/chattel financing
- Two years of new MH sales at PPI communities
- NADA valuation of used MHs
- Home costs, specs
- Options/features in new MHs (eg - door swing/hinges)
- Onsite: setup, decks, skirting, a/c, landscaping
- Cost accounting data – all new MH costs including onsite, SW vs DW
- Selling new MHs in MHC (different from street retailers)
- Qualifying prospects (Pre-Qualification Worksheet)
- Accounting entries – option payment, lease, exercise option
- Depreciation – bonus, annual, recapture
- Proposal – original home + onsite costs, sales profit, repos
- Organization – stock numbers, folders/files, recording closings, off-site storage
- Marketing – flyers, social media postings, reviews
Click Here To View The Agenda
SECO has secured special rates for workshop attendees at Country Inn & Suites Hotel in Atlanta
If you need assistance with your room registration at County Inn & Suites, please contact Genet (678-909-5203) or Johnnetta (678-486-4461).