MH notes w/park sale


What’s your opinion on a lot rent park purchase. All 2017-2018 model homes. the seller holds notes on all the homes. He’s willing to sell the park with or without the notes. If we buy the park with the notes he’s offering a 20% discount on the notes. They are 20 year notes seasoned for 1-2 years with balances in the 40’s. The homeowners all put $5k down. Would you buy with the notes, just the park, or not at all?
50 space park, paved roads. City utilities good area


I would question WHY he wants to sell since it seems he has a very functional??? property. Great properties are seldom for sale!!!


Buy with the notes. If you think the discounted note value exceeds the value of the homes and the notes are on reasonable terms. But then you have to do DD on the notes to make sure they’re enforceable (what happens upon default?)


Buy the notes if you, after doing your due diligence, find they are done correctly. Odds are you are going to have to foreclose on some of these in the future and it would be better if you could control what happens to that home after that.