Need help with the Negotiation Game


#1

Hello Again! The owner of the following MHP contacted me the past week, asking if I am still interested in purchasing the Park. This is not a Turn-around Park. It is immaculate. It is located within 10 miles of my home. So it would be very convenient to manage. I explained to the owner that considering the vacancy rate, that I would not be able to give the $1,100,000.00 asking price. They are somewhat motivated sellers. Owner is over 70 years old and wants to retire.

Purchase Price is $1,100,000.00.

30 acres

115 Spaces

81 Occupied Lots @ $105.00

34 Vacant Lots

76 Septic Tanks

1 Main Water Meter - Monthly Expense $1,600.00

Paved Roadways

Liabiblity Insurance - Yearly Expense $2,000.00

Land Tax - Yearly Expense $2,800.00

Outside Utility Lights - Monthly Expense $ 200.00

Yard Mowing Expenses - 1,000 monthly (Due to all vacant lots)

No Park-owned homes.

Using the 60/30 Rule I came up with $617,400.00.

I am familiar with sub-metering water. I should be able to install within 2 months.

Surrounding MHP Lot Rentals are $125.00 - $150.00 monthly.

I am not a master negotiator. Do you guys have any ideas for creating a deal??