Is This Possible?
Hi. Thanks for the great forum. Looking for help with the following scenario: My brother found a MH on an acre to buy. He qualifies for MH financing, but it has to be on a brick foundation. I do have the $25K cash to buy it but my question is this: if I buy it, can I add a brick foundation and sell it to him? Thank you.
Your question really is can you loan him the money to buy the property and the money to fix it up.
Sure you can, just get normal deed of trust like any other lender would, that requires him to pay you off whenever he does get the bank financing.
An escrow co. or lawyer can draft these docs for you so they're done right, and you should get lender's title policy so you know you have a 1st lien mortgage on it.
Question: if I buy it, can I add a brick foundation and sell it to him?
Answer: Yes you can do this, but first you will want to check with the city/county planning and zoning office to insure the you comply with any rules and regulations in your area and at this point you will be able to determine if it will be a cost effective investment for you.
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