I have a park in Northern Minnesota under contract that I am looking to assign. Was originally interested in purchasing the park but I have decided to assign for the following reasons. It is too far from my park in Southern Minnesota and is too much of a project cleanup wise and infilling of homes. I already have one of these project type parks.
Contract Info: Frank and Dave contract template. $205,000 cash, 45 day diligence period, no finance period, $5,000 earnest money is already with the title company who would do the closing (division of Chicago Title) and we have the title commitment already. 45 day inspection/diligence period is cancellable for any reason. Clock starts when seller has turned over all requested materials which still waiting on deposit records from bank. I know cash is not ideal but I talked them very far down using that and planned to finance during the 45 day period or after closing. I have a local bank interested and we are at the part where I have sent them my financial info. We have $5,000 earnest money with the title company
Park Info: Northern Minnesota, very small town located in a decent Metro Area of 50,000 population. 57 lots, 20 storage units, 11 RV Camper spaces, 1 nicely renovated house. All resident owned. Rent $205 I figure can go to $250, includes water/sewer, city utilities, gravel/dirt roads. 10 acres I believe. 29 homes in park and 4 are vacant in bad shape. Lots of trees. Maybe 30% to 40% pitched roof homes, 1 double wide. Owners claim sewer and water lines never have issues and I spoke with a guy in the park who has been there 20+ years and he said never really has seen issues with clogs or leaks. Did a test ad that pulled 20+ unique responses from just Craigslist at $600 per month for sale or rent 2 and 3 bedrooms. Metro housing prices were higher than the local town. $150,000 metro, $90,000 town
The Good:
Minnesota
Quaint Town
Low Price
Bank interested
Some well kept newer homes with pride
City utilities
House, Storage units and Camper lots
Test ad did well
The Bad:
Small town
Dirt/gravel road
Trees
Junk on lots
Some storage door tracks need repair
Filling lots
4 tear downs or heavy renovations
I have pictures. Let me know if your interested.
Thank you,
Jason