Need sanity check on park lease with option to buy

Hi All:

Does anyone have experience with a lease with an option to buy? I’m working with an owner who has done a lot of infrastructure work and tenant remediation (not sure that is a term) and is ready to sell, but the deal likely only works under a lease option scenario.

Does anyone have some time to field a few questions from me preferably over the phone or via e-mail? Feel free to message me with your contact info if you are available. I will try to keep it short as I know everyone is busy.

Thank you.

Yes, I know all about that structure.

Email me at frank.rolfe@gmail.com

I was gonna offer some help, but Frank beat me to it!!

I saw your post about the lease option. We have a park that we started rehabbing and have another park owner who would like to purchase but needs some time to get finances in order. We would like to be with the hassle and let him run the park until he can purchase. How did this process turn out for you?

I didn’t end up entering into the master lease because the terms were very unfavorable, which Frank helped me understand in no uncertain terms. Thank you Frank!

I did recently close on a park that was previously operated under a lease option. My feeling is that as an owner you need to structure the master lease so the lessee has some skin in the game. I understand that this person wants to purchase your park in the future, but things change in life. The person who operated the park I bought purchased his own park halfway though the lease. Obviously, the park he owned became the priority over the park he leased so the management of the park I ultimately ended buying fell off. I am now working to clean the park up so beware!