post tried to show just how critical (I say necessary) networking is…
I just left NC and I would love to own a Park up there.
Ginger, the beauty of a L/O is it really does not take a ton of money (loot) to get control of cash flow for awhile. I would not really care what the price of the Park is…seriously. If they asked 1.5M or 2.5M, I would gladly pay that at “AT SOME LATER DAY” preferably in 7-10 years. In the meantime the lease amount is much more important to me. I’m involved in one now where gross rev. is 31K per month, expenses are 6,800 per month ( garbage, insurance, lights, taxes, accounting, upkeep). There are 9 empties and lot rent has been the same for several years. No park owned homes, city utilities w/ master meter (this will change).
My plan is to pay less than 20K for Option and lease the park giving Owner 16K per month. Another 7K for expense, another 2K for manager and put 6K in my pocket each month for 7 years. Raise rent 50 per month and put an added 3800 in my pocket each month. Bring in 9 d/w and lonnie? Add another 2920 per month of lot rent and twice that in d/w home itself rental. cost of bringing in 9 homes? quarter mil…a great return.
At the end of lease? Sell for profit (perhaps giving Owner a portion of gain.)
Renew for another 7 year term. or Let the Park go back to owner…I’ve made close to a mil in profit over 7 years. With 10% appreciation each year on sale I’d make a fortune, but that really doesn’t matter that much to me. Given a choice of a higher sale price with lower monthly amount or vice versa, I’d take that lower monthly every time. I’ve made my money monthly in free cash flow… so whether he wanted 1.5M or 2.5M doesn’t matter at all if my spread is there each month.
I’m not saying this is the right way or the smart way, but it is my way from this day forth. I don’t feel you should pay a lot of money to help them solve their problems, it is worth an ask? Probably it is.
You have a case of Partner Squabble going on…the ones paying are looking for someone to make the problems go away…be that person and you are set for seven years or more. Do another, and another…see a pattern here?