I have a mobile home park under contract in Northern Indiana and am looking for some advice. I am trying to take it down as a JV but struggling to find partners that are interested.
The catch for the park is it has a waste water treatment plant that is shying most investors away. I’ve done my due diligence on it and had a reputable 3rd party inspector come in to do a thorough assessment and report.
How would I best make investors more comfortable with the idea of investing in the deal? This is a great area with some good value add potential and incredibly high demand for affordable housing.
Closing has already been pushed once due to partners backing out so I don’t want to miss the new mid December close date or I may have to consider wholesaling.
You said:
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I’ve done my due diligence on it and had a reputable 3rd party inspector come in to do a thorough assessment and report.
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It doesn’t sound like you’ve managed to convince your JV partners that the treatment plant is low enough risk. Either it isn’t actually low risk and you should back out of the deal, or you may need to up your salesmanship game and better explain and pitch why it is a low risk element.
@jmurph, if I’m a potential investor looking at your deal, while a “reputable 3rd party inspector” report is nice, what’s the gameplan should the waste water treatment plant fail day 1 (or year 1) of you taking it over? Do you have enough in reserves to make the #'s work? Every investment is risk/reward and it sounds like this might be too far out on the risk curve w/o proper returns for investors.