I am considering making an offer on a small mom and pop and looking at the profit and loss statement they don’t account for a management expense. The owner lives nearby and handles the day to day operations. I would be out of state and would need to pay someone to help manage the park. Do I account for this in figuring out my offer price? Obviously, if I add an extra 7% mgmt. expense it will reduce the offering price. Any help would be much appreciated.
Just like any Business even if you self Manage Time is Money so whether you Manage out of state or have someone local it still cost your business Money which comes out of your profits I’m new to MHP Business but the simple formula for making money is income less expenses = Profit so to answer your question yes Not to mention the Human factor which sometimes can take a lot of your time to babysit or train a Manager to run the park and enforce your rules for profitable operation just my 2 cents
1 Like