Hi all-
I’m looking at a park that is giving no info on rent rolls and the agents are avoiding the question of rent rolls when I bring it up. The listing says that they based their price on $12k per pad and that any homes or rent is just a bonus (I know this to be untrue as I listen to a lot of the podcasts put up by Frank). How would I value a park like this to make an offer? Or am I just wasting my time?
Thanks and merry Christmas and happy holidays!
This is almost surely a sham, you’re likely wasting your time.
Tim-
Has the agent provided any other financials ie. a P&L or home schedule?
It’s not uncommon for mom-and-pop owners to have sparse or incomplete data. That being said, a rent-roll or some variation is usually available.
Feel free to send me a direct message and we can chat further.
Tim:
I agree with @Ross the mom & pop may not have good financials. I would take the stance with the broker that you are trying to help them sell the property. Ask the broker to simply explain to you how they came up with the sales price, if you can met with them in person and buy them a coffee.
But first you have to decide if putting a lot of time into getting the numbers, is this park worth it. You can find the market rent rolls pretty quick by calling local parks. When calling the other parks ask them their option on the one your trying to purchase.
Good luck let us know what happens.
In my experience it is super common for mom and pop owners to have shaky/non existent financials, and for their rent roll to be sloppy or incomplete, but I’ve personally never come across a mom and pop owner who doesn’t have a rent roll at all. That just seems super weird to me - the owner doesn’t have any idea what homes are occupied or who lives anywhere? Does he even attempt to collect rent?
Mom and Pop know how much each tenants is required to pay for rent. Don’t be fooled.
Your problem is the agent.
Thanks all! I’m going to do a little more research and then I’ll talk more with the broker. I’ll let you all know what happens!
Will you share what happened? Thanks
Run! 