The opportunity is to lend for ten years on a portfolio of new manufactured homes, yielding unleveraged returns of nine percent (9.0%) with payments of principal and interest paid monthly.

Each of the houses has a qualified, thoroughly underwritten leaseholder tenant that has made a significant payment for an option to purchase the home at the end of the eleventh year of their lease for a set price.


Manufactured homes, like automobiles, are classified and titled as chattel or personal property.  Just as lenders have been offering a lease-to-purchase option agreement on autos, Southern Alliance Homes LLC (SAH) is offering similar lease-to-purchase financing for manufactured home buyers.

Due to industry experience, connections and volume purchasing power, each new single-section home fully installed on a lot cost about $48,000 on average and each new double-section unit fully installed cost on average $61,000.  The retail value of these homes is fifteen to twenty percent higher than our costs, since we are buying direct from the factory and are not marking-up the cost of the home. 

This provides additional security protection for the Lender on the homes. New residents to the community make an up-front option payment on their home ranging from 8% to 15% of the cost of the home, with the standard amount being 10%.  This option payment creates a financial commitment by the Tenant/Leaseholder in their new home and is the first step towards home ownership. 

Benefits of our lease to purchase home program

With our established lease to purchase home program, we can deliver benefits to the manufactured home community owner and the home lender investor:

  • A recorded first lien on each of the homes covered in the loan program secures the loan.
  • Leasehold tenants reimburse the insurance and taxes on the home to the home ownership entity (“SAH”) monthly. This allows SAH to ensure that the taxes and insurance are paid on a timely basis.
  • Once the initial home warranty period has elapsed, the leaseholder tenant pays for all maintenance and repairs. The leaseholder cannot move the home, since the title is in the name of the home ownership entity.
  • All homes are owner-occupied, no subleases allowed.
  • Our tenants enjoy pride of ownership and often enhance the value of their homes.
  • Lease defaults are rare, and historically the default rates have not exceeded 2%, however, the default rate is even lower when backed by a guaranty of the park/community where the home is located.
  • Management of the tenant is done by the park management team, and therefore relieves burden from the home lender.


SAH is seeking loans from Investors/Lenders of at least $100,000 to finance homes already owned by SAH that are currently under leases with an option-to-purchase in Belleglade MHC in Clarksville, TN.  These loans will pay nine percent (9.0%) interest, with monthly payments of interest and principal.

Monthly payments on a $100,000 loan amortized over ten years will equal $1,266.76 per month.


SAH anticipates a need for an additional $400,000 in capital each quarter for the next three years, for a total capital need of approximately $6,000,000.

And, this is just to meet the need in our Clarksville, TN community.

SAH and its affiliated park ownership entity, Iron Horse Interests, is actively seeking other park ownership opportunities in the Southeastern U.S. that will have requirements for new homes.

What our Investors/Lenders say about their investment with SAH

Interview with one of our previous Investors with SAH.

What our Lessees say about living in our community


Interview with one of our lessees at Belleglade MHC in Clarksville, TN.

Frequently Asked Questions

Welcome to our Frequently Asked Questions. You will find answers to the common questions.

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