My wife and I attended the bootcamp in 2019. After about a year we finally have an opportunity to purchase a park but have questions about the offer process. If it’s okay I am just going to list the questions. If anyone can offer insight would be very much appreciated! We are working off the P/S agreement provided under the MHU resources site.
1 I don’t see anywhere on the document where to list a closing date, is that common, where to put it and how far out should it be?
2 What if the person counters, where to list a counter offer?
3 Do we put a deadline on the offer for them to respond such as 48 hours or a time and date?
4 There will be 2 parks involved. Can I put them both on the same document as long as it is listed and explained clearly?
5 Just have the seller put in their contact information and sign it, thats it?
6 The Title / Escrow company asked if the buyer and seller would both be using them, does it matter, should they be different?
7 Do you list dates for financing contingency, or any other contingencies?
8 If this is bank financing, should I add an appraisal contingency?
9 Is $2,500 sufficient Earnest Money for a $600k park?
10 What documents to you typically ask the seller to provide for due diligence once under contract?
Not sure which one you used but from contract
5. Closing date states 10 days after your right of inspection and cancellation on an mutually acceptable date etc
7.
14 General terms (i) states offer null and void etc.
Do you have a title company? If not call and ask for a Legal description or address and they can help you.
Lots of the questions you asked are on the contract I have
Did you not receive the due diligence manual book from the course? If not email brandon and ask for the file link.
Overall from your questions, I believe you should go pay a lawyer ($250-$1500 is like another insurance policy and well worth it) to help you modify the contract and teach you the contract and process basics so then you can replicate it again with minimal assistance
@stanfda I am going to have to second @mPark comment. Many of these are issues that need to be addressed by a legal professional who has relevant CRE experience.
Thank you everyone for your remarks. I was able get my questions answered and should be all set. Appreciate you all weighing in. Have a great day! Dave
Like others have stated, you should have some of your questions addressed by a professional. I have a few comments, - you may or may not agree.
I don’t know what the P/S agreement is but if it is the purchase agreement: it isn’t absolutely necessary to have a closing date but I suggest you have a closing timeframe that is based on you having ample time to get a loan, phase 1, appraisal, do a site visit, dd etc. If you are getting a loan try to get 60 days - If I was you I’d start soliciting lenders now and getting my personal finance info together.
2 and 3. I don’t go under contract until a price is agreed on. You should always have an offer deadline - I set a date but allow myself to extend it to give the seller more time (“Purchaser has the right to extend the deadline”)
this is a good question for an attorney - you could have one contract . Each park may have different inspection requirements, etc so be sure to address the concerns of each park in the agreement.
Yes… or do it for them - other than the signature of course
good question for your attorney
7 and 8. I would, and keep it open ended - “Purchaser will be allowed additional time if appraisal, etc… take longer that the stated time allows” have your attorney word this. If the seller wants a deadline you’ll have to negotiate it - be prepared to educate him on what is involved to support your extended deadline request.
