I want to thank every one for of you for your posts. You make me feel like I am not alone.
A few facts that I know: The park (built in the 50’s) was inherited by three siblings several years ago.
When I came on board it was in the red. Tenants had not paid for up to three years. Cops visited every weekend. I was led to believe if I worked hard for small pay some day (maybe) I could buy into the pardnership. Not!
Six years later: The park is paid for and has no debt. All of the drug and alcohol problems are history and the sheriff’s department congradulated me this year in that they had not had to visit our park in over three years.
The park has a waiting list. Parks are not being built here they are being torn town down for the higher and better use.
I talked with the park’s accountant today about the lease. I need at least a five year lease which she thinks would be workable as the owners have other business interests that requires all their time.
I own a third of the homes in the park the rest are owner occupied. I could raise the space rent 30 to 40%. Thats how far below market it is. All my homes have paid for themselves and then some as we live in the highest rental bracket in the state of Colorado. If I negotiated a lease that ended in five years I could walk away and not have lost any money and hopefully made some.
The accountant is trying to put numbers together based on some kind of an income approach going five years out to base what I would pay yearly. She is trying to be cautioius as she is my accountant too. So she is only going to open the negotiating table with a suggested number.
I believe that the next step is going to be what my yearly lease will be and
what the park nets. With this information I will be able to see if I can actually make the money I feel this job should pay.
I don’t think a lease with option would be what I want. Hopefully without an option in the lease I can enter into a lease with none of my money invested in the deal.
Again thank you for your posts as each one helps me look at something you have seen and lets me test drive your ideas.
I will let you know what happens, hopefully by the first of the year.