Very small park

[Scottty]

I’m not living in the US, nor a US citizen,so I’m lead to understand that I can not obtain finance to assist in the purchase of a park, I can only use my own cash funds.

I have been watching a park in the state of Kansas, it’s in a well populated city. It has just 8 spots, 2 lots are vacant currently with the other 6 as lot rent only at $150, with a sale price (firm) of $40,000. Just based on 6 vans x $150 lot rent x 70 = $63,000 valuation.

Yearly income currently would be $10,800 (6 lots at $150 per month for 12 months)

Expenses are minimal - all up say $5,000, leaving me just under $6,000 per year profit.

If I could pull in 2 more vans and increase the rent - my income could increase to say $16,800 per year (8 lots at $150 per month for 12 months)

Does anyone have advice, or maybe an alternative I haven’t thought of?

[jhutson]

I’m not sure what part of the globe you’re in, but I am curious how you can effectively perform diligence on a Park if you don’t share a lot of the same daylight hours. Maybe you’re in South America and this is a lesser issue, but the ability to visit the Park in person for me is a very critical step in the vetting process. If I cannot go then I must send someone I implicitly trust on the subject matter and tasks to handle.

The concern is diligence may take you a lot longer than someone that can go there and hammer it all out instead of over the phone. If you have boots on the ground to help then you could be okay - hopefully you have experience doing this with other asset classes?

You will never be able to visit the Park unless you’re comfortable bombing your profit for the year. Also, have you ever filed taxes with the US government before? I don’t know if it’s worth the headache for only 6K profit…us as citizens already have to file, so adding a business into the madness is only an incremental hangover.

And an alternative is to look for larger Parks where the Seller is offering to finance directly to the Buyer so you can sidestep the bank dependency.

[Scottty]

Thank you for the quick reply jhuston. We have relatives living in the US and visit each year, so thats fine.

We already have investments in the US and lodge tax returns, it’s not that bad (bit of work to initially set up)

Due diligence, yes, I know a guy in the business I could ask to visit the park for me, ongoing I will need to think through.

Your idea as an alternative to look for larger Parks where the Seller is offering to finance directly to the Buyer so I can sidestep the bank dependency will be something I’ll consider

thank you.