Park Evaluation

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21

$300,000 is the number I am thinking of offering. Here’s the breakdown:

17 Lots * $262/Month * 12 Months * 50% Exp Ratio * 12% CAP = $222,700

3 POH are 1962 (55x10), 1973 (68x12) & 1999 (56x14) - I am valuing them at $20,000 collectively

5 R2O contracts with a face value of $91,938. Asking for a 40% discount = $55,000

$222,700 + 20,000 + 55,000 = $297,700 - Rounding to $300K.

Will be emailing broker tomorrow offer with Due Diligence and Financing contingencies. Will let you guys know how it goes and appreciate the advice you guys have provided.

22

Sounds like a sensible plan. Good luck.

23

Frank,

when you do a zero down deal I am assuming you do a NNN lease. I have looked at the CAR forms and they do not have any that would really spell out lease terms specifically enough to protect both lessor and lessee. Where do you get your forms or do you have an attorney draw up an agreement?

thanks!

24

Frank,

I am going to use the “Purchase and Sale Agreement for Mobile Home Park” found at the back of the free book on “MobileHomeParkStore.com” as my starting point.

Would this be appropriate?

25

The Purchase Contract in the book can serve as your initial template. But be sure to read and understand it, and have a lawyer look at it, if necessary.

26

Absolutely. Thank you Frank

27

This is a great thread! Thanks for the helpful info!