Mobile homes as retail space - lease vs. buy


#1

I am currently leasing a set of four trailers from one of the country’s largest suppliers of mobile office buildings (W-S) for use as a 64’ x 48’ clubhouse for a small golf course that I own. I really don’t like leasing this mobile office space (at $1500/month) since I am not accruing equity. I have explored buying these buildings and, even though the buildings are almost 15 years old, the company wants north of $60K for the set of them. Is this a reasonable price? If not, is it feasible to buy four trailers and put them together such that I could end up paying less money? What would it take to do this? I have thought about other alternatives such as going with a different vendor, lease to own, making the clubhouse smaller, etc. to save some expense. Are there other things I could do?

Thanks in advance,

Tim


#2

Tim,

I would do some research on the internet for competitors that provide the same type structures. The challenge with bringing in mobile home trailers would be the cost of the unit, hookups, breakdown/transport/setup and then retrofitting the units to be a clubhouse.

If the company is stuck on the price, I would negotiate using terms. Maybe 40 payments of $1,500 (principal payments only). There are endless ways that you could construct a great purchase using terms rather than price.

Corey