Certain parks I've been looking at require an NDA, and certain terms of those NDA's have me slightly concerned. Are these agreements usually pretty standard or is there something I should be looking or be careful of?
This same broker with the NDA is also requiring that "proof of funds" to be submitted with the return of the NDA. What do proof of funds look like, a bank statement? There are no financing details (other than sale price) mentioned in the listing. When proof of funds are required what is the seller usually looking for, enough money for 20% down and enough cash to cover DD? or something more?I would tell the broker that you will send proof of funds along with the offer. It’s stupid to ask for them this early, especially if you find out something about the Park in the financials that is a deal breaker (e.g. they are asking a 2% CAP and their rents are above market, for example).
They need to prove that the price of the park is reasonable and then you can take it from there with an offer and proof of funds. This will also let you find out more from them about financing…new loan vs seller carry vs cash only.
But if you have the ability to show proof of funds for the asking price then I guess that makes it easy.
It sounds like you have a residential broker who happens to have a park listing.
When this happens to me, I write up a letter stating that I’m pre-approved for financing or with whatever else it needs to have in it. I send it over to my banker. He reviews it to ensure he’s comfortable with it, transfers it to the bank’s letter head, signs it and sends a separate email to the broker. I’ve never had a problem with a broker after I started handling those special whacko’s that way. I use my local banker even for properties I know the bank would never finance.
Again, their financing is contingent on the property fitting into their loan portfolio. As far as me as a buyer, yeah, I’m pre-qualified by them to buy properties that size. So, of course I’m pre-approved. The property being pre-approaved is a different story.
This also works for owners who want to see if you’re a real buyer.
I’ve also used this for an owner who wanted to seller finance, but also wanted to put deal killer terms in it. That letter had a financing offer in it. It helped in getting him to remove the deal killer terms and be reasonable. I own that park now and the seller financing on it is pretty close to what was in that letter.