Letter of intent signing today


#1

Hi.
I have a Letter of intent written up by a broker on an off market deal were the seller is going to take out the commission from the sale.
Structure of the offer is as follows.
-Price 2.15 Million
-mix of RV’s and mobiles 100% full with calls asking for space.
-450k down, seller to carry the balance at 5.1% , 25year amortization, Balloon Due in 8 years.
-Pad rent produces $17,000 per month which is conservatively 15% below market value from comps.
-City is 90k plus in population and growing with a super Walmart less than 4k away.
My intention would be to first try and purchase the park myself, shopping around for the 450k down at a 10% return hard money which the income should support.
Or wholesale ?
I am moving forward being conservative as possible on numbers.
Anyone who could rank this deal 1 to 10 and or have some input on this deal would go a long ways in boosting my confidence.
60 days due diligence.

Thank you very much!
Jordan Arnold


#2

The Seller won’t let you use a hard money lender for the down payment, otherwise they would have offered you those terms themselves. And they will want a first position lien, which the hard money lender won’t accept.

Wholesale it.


#3

Hi
Thanks for the reply.
As it stands the seller is not aware of were the down payment is coming from and I believe they want some liquid cash to play with from the sale, but some negotiation is still happening.


#4

Confirm if my math is correct, but are you close to being underwater on this?

Monthly rev: $17,000
Monthly exp (conservative at 35%): $6,000

Net before mtg pmt: $11,000
Mtg pmt: $10,000

Net net: $1,000

Adding in the extra 15% gains you an additional $3k or so

Is there additional revenue somewhere?


#5

@oceanview - A little more info would help in giving you a good answer:

What is the ratio of RVs to MHs?
Are the RV spaces also suitable for MHs?
City Water / Sewer? Who pays?
What capex do you anticipate in the next 1-10 years?


#6

hi
sorry for late reply have been on the road etc.
yes the numbers are tight from day one, good comps support a conservative 15% increase and there was a one time 22k construction cost last year on the numbers i have so far .
tenants pay all utilities.
Thank you for getting me to look harder at the numbers i have a half hour conversation with the broker today on your points plus other.
I will have to add to this post later as i’m in a noisey room and had a long day!
During due dillagence i may have to change numbers,


#7

Hi Jaydub
city and city.
I have asked on. the ratio and size etc…
thanks for replying .


#8

Hi
not sure on how to PM on here yet but to let it be known after some long negotiations the seller has backed and has elected to wait a year before selling .


#9

Hello,

If you are interested in selling the park off-market (wholesale) I can help you. We can both get paid a fee if the transaction closes. Call or text me if you are interested in talking on the phone about it.

Trever Epperson
626 383 0951


#10

Hi Trevor
I think I responded on the wrong platform here?
Hope you receive this and I would be interested in selling this deal but the owner has backed out, only to say they want to wait a year before selling.
I will keep you on file and see how it develops.

Thank you.
Jordan Arnold.


#11

Hey John,

Got it. Shoot me an email direct anytime to discuss. My mobile number is in my original message.

trever@buyfuturerealestate.com

Trever