Empty park


#1

ok, so here’s the deal. The Secret is bringing me more and more opportunity - its unnerving, and not a little bit spooky!

Got a call today - brand new developed 11-space park, platting done and CCRs recorded to make it a condo park, 55+. Developer wants to unload it - they don’t know anything about MHs, as evidenced by the condo park they built next door, and could not fill until a dealership jumped in to help.

This is planted right in the middle of a perfect retirement community, and would warrant high lot rents for the area (500-600/mo). To convert it to a land lease park would only take recording new CCRs, I believe.

This property is literally ready to go - curbs in, all utils ready to connect (city water and sewer, cable, phone, elec), just no common areas, office, or homes. 7 or 8 spaces will take triple-wides, and this park would warrant new homes, or Bo’s newer repos, if he was in the NW.

So, is this something to be evaluated differently? Income method seems moot, cuz there ain’t any! Ideally, the seller would carry the sucker, or take an option, to allow me time to get homes in. Using the 30-only rule, 30 x 11 x 500 = 165K; they are asking 950K. they will surely come down, but not 90%!! And the condo lots will only sell for 79 to 95K . . . THAT is the most desirable outcome, for me and residents alike, but there just aint no spread.

I have a dealer’s license, and could get a wholesale deal from a factory, but 1m Clayton LOC or something comparable would be necessary to buy this volume. I talked toa new home dealer I have a relationship with, and he is drooling . . . well, duh.

So, what might be some options here?


#2

Steve,

Could you possibly get an option on these lots (at a lower price)? If so, maybe you could bring in homes at wholesale prices and sell the whole package and make a good profit on each lot.

I’m thinking you could approach this similar to what a builder does in a subdivision project. They will often acquire options for a set amount of lots from the developer and pay as each home is sold.

Just a thought.

Steve Case