Is it a good park or not


#1

I have a few parks that I have looked at and I am trying to understand how to determine if I should continue to look into them or not. First I run the numbers from the rent roll and determine with the formula 60/30 or even the 70/35 what the parks value is. If this preliminary value is way under what the seller wants for the MHP should I stop even if the Net Operating Income stated, Cap Rate and Cash on Cash checks out good? or even if the numbers look good (Cap Rate, Cash on Cash and NOI) is the formula 60/30 or 70/35 is telling me that the seller is wanting too much for the park?

thanks for your input…


#2

Don’t be afraid to offer “your price”. I’ve purchased many parks in the past at 50-60% of the original asking price. In order to succeed in this business, it’s imperative that you don’t overpay for the property. Doing so will most likely put you behind the 8-ball from the beginning and lead to a bad experience.

Steve