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Did you purchase a park owned or affiliate owned mobile home in a KSFG/SCM mobile home park? We’re you offered a space rent special if you signed a long-term lease agreement? Does your long-term lease agreement, usually page 4, contain a lease term section referencing a separately attached Lease Addendum?

Example: Addendum: Resident shall receive free rent (01/01/19-03/01/19). Space rent for the first year shall be $1,600.00 (03/01/19-03/01/20). All subsequent annual rent increases shall remain as indicated herein. Addendum rent is only valid for original tenant and is not transferable/assignable to assignees/future residents.

This is just one example of various space rent specials offered by Kort & Scott Financial Group dba Sierra Corporate Management, for mobile homes that they own under an affiliate company e.g. Western Ventures, Two Palms Real Estate and Tri Palms Ventures.

MRL Reference: §798.19.5 – Park Owner Right of First Refusal to Purchase Home

Sierra Corporate Management Lease Term Addendum Clause
Sierra Corporate Management LEASE ADDENDUM

Buy Here. Pay Here. Stay Here.

The MHPHOA are currently investigating the alarming recurrence of “Same Space Turnovers” in Kort & Scott owned mobile parks. The data shows that the average length of mobile home ownership is broken down into 3 timeframes; 12-16 months, 24-28 months and 36-40 months. These timeframes coincide with the 1, 2 and 3 year rent specials being offered for Kort & Scott affiliate owned mobile homes.

Many of these homeowners did not fully understand their long-term leases and found themselves in financial hardship within a short period of time. Their long-term leases contained the above “Addendum” Clause which leads to a “Right of First Refusal” and their mobile homes were purchased by a Kort & Scott company for a fraction of their value.

Many of these mobile home owners lost their homes (evicted) in an Unlawful Detainer Lawsuit filed by a KSFG named business entity. Mobile home parks are managed by Sierra Corporate Management.

Sampling of 478 Eviction Lawsuits
Chronological Order from 2000 through 2018

Have you ever wondered why later model mobile homes in your park are being sold and moved out and older, many times substandard mobile homes are brought in to replace them? These older mobile homes are easier to sell at below market prices in the $10,000 to $20,000 range – we’ve seen mobile homes being offered as low as $750. This is a standard business practice for Kort & Scott, buy a mobile home park, strip assets, and slowly degentrify the community.

One example of this happening is Lincoln Center Mobile Home Park in Cypress, California. According to our research, it is Kort & Scott’s largest mobile home park in California with 305 spaces. The “Leasehold Rights” were purchased in March 2005 and the degentrification of this mobile home park is ongoing.

Many of the park owned aka affiliate owned mobile homes being purchased in Kort & Scott owned mobile home parks are “Cash Only”. When you purchase a mobile home for “Cash Only”, we refer to that cash transaction as a non-refundable deposit, you may never see that money again.

In summary, you purchase a mobile home for “Cash Only” and you receive a “Space Rent Special” with a significant savings over the market rate. You don’t fully understand your long-term lease, you were expecting it to be a standard common lease agreement.

Unfortunately that was not the case. Your first (or second) space rent increase notification comes a year (or two) after purchase. It’s much more than you expected and you are now forced to sell your mobile home because you didn’t realize how much your space rent would be in the long term.

Since you signed a long-term lease with a space rent special that comes with an “Addendum” attached that give Kort & Scott “Right of First Refusal”, many homeowners end up selling their mobile homes back to a Kort & Scott affiliate.

Mon, Jun 13, 2016 – This park/affiliate owned mobile home was being offered for $750. Park residents refer to this mobile home as Unlucky Space #13.

Knolls Lodge Mobile Home Park
23701 South Western Avenue #13
Torrance, California 90501

$750 Home for Sale

Buy Here. Pay Here. Stay Here.