We close on a park in 2 days.
Seller will keep 11 park owned homes, as his rentals.
The balance sheets show $20k worth of old debt, from tenants not paying. Some debt from 10 years ago and those tenants have been paying an extra $25 mo for years to catch up.
The Seller wants to retain ownership of that $20k in debt.
The Seller is a wealthy Attorney, and we worry about the tenants fearing him more than us, and paying him first.
We also worry that he might place a lien on those trailers and then he could end up owning the trailers and turning half of our park into rentals that he owns. We don’t need him to monopolize our park by demanding lower rents or threatening to move all of his trailers.
What do you guys do with old debt when buying a park??
THANKS SO MUCH!!!