MHP #909: The Dangers of Paying Face Value for Rent to Own Contracts

Real Estate Investing for Cash Flow with Kevin Bupp

Kevin Bupp

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4.9 • 675 Ratings

🗓️ 11 June 2025

⏱️ 7 minutes

🔗️ Recording | iTunes | RSS

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Summary

Today's episode is from Mobile Home Park #64 that originally aired on April 25, 2017.

Charles and I will discuss mistake number 19 from our popular eBook, “The 21 Biggest Mistakes Investors Make When purchasing their First Mobile Home Park…and how to avoid them.”

You’ll run across many parks during your search that have park owned units that are being sold on rent to own contracts or owner financing notes. In todays show Charles and I will discuss why you don’t want to pay face value for these notes.

Recommended Resources:

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If you’re a high net worth investor with capital to deploy in the next 12 months and you want to build passive income and wealth with a trusted partner, go to InvestWithKB.com for opportunities to invest in real estate projects alongside Kevin and his team.
Looking for the ultimate guide to passive investing? Grab a copy of my latest book, The Cash Flow Investor at KevinBupp.com.
Tap into a wealth of free information on Commercial Real Estate Investing by listening to past podcast episodes at KevinBupp.com/Podcast.

Transcript

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0:00.0	Hey guys, Kevin Bup here. Just wanted to make a quick announcement about our Wednesday Mobile Home Park show that you're about to listen to.
0:06.4	These Wednesday episodes are in collaboration with my other podcast, the Mobile Home Park Investing Podcast, many of which were recorded a few years ago.
0:14.1	I've carefully hand-selected only material that I feel is still relevant today, but there's a chance you might find references that could be outdated
0:20.8	at present, such as website URLs. Thanks for tuning in, and now on to the show. Welcome to this
0:28.1	week's Mobile Home Park Investing Podcast that will teach you how to successfully invest in and build
0:33.6	steady streams of passive income from the highly lucrative niche of mobile home parks.
0:38.8	With decades of experience, Kevin Bup will personally share with you the valuable lessons he's learned along his journey
0:44.5	so that you too can learn how to generate cash flow and build legacy wealth for you and your family.
0:51.1	Now, without further ado, let's welcome your host for today's show, Kevin
0:56.0	Bubb. Welcome guys and gals to the Mobile Home Park Academy's special series on the 21 biggest
1:02.5	mistakes new investors make when purchasing their first mobile home park and how you can avoid them.
1:07.9	I'm your host Kevin Bup, along with my co-host and business partner, Charles D. Hart.
1:12.2	Charles, tell our listeners about the big mistake we're going to be covering today.
1:15.3	Thanks, Kevin. Big mistake number 19 is paying face value for rent-to-own contracts.
1:20.1	And this topic is important because when you buy mobile home parks, you'll run across many of these rent-to-own contracts.
1:26.4	Okay. And why shouldn't we be paying face value for these?
1:29.5	I mean, now they're being sold on some sort of contract, either owner-financing terms or rent-to-own.
1:35.9	You know, there's certain monthly payment coming in, but why shouldn't we be paying face value for whatever those remaining payments are?
1:42.4	Well, when you look to buy these notes,
1:44.6	a lot of times you have to step into the shoes of a note buyer.
1:48.1	It is true that you actually have the most incentive
1:50.8	to keep these notes within your park
	...

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