I am working on my 1st initial park evaluation. When emailing or talking to seller, what are some initial questions to help me evaluate a park. The following is a list of questions I have…….
of lots, Lot rent, Financials/rent roll, Income/expense sheet, POH, city water, city sewer, city roads, manager onsite, owner financing?
Does anyone have anything to add?
Well, you can add the following in no particular order:
- Why does the owner want to sell?
- How many of the lots are occupied? Are there abandoned homes? Do they need to be removed or can they be rehabbed?
- Does the owner live near the park? If so, what responsibilities does he perform? You will want to know this in case there is something that he does that you will need to contract out once you take over the park.
- When was the most recent rent increase and what was the amount?
- Are the utilities billed back? If so, how is the amount of the billback calculated?
- If there is an onsite manager, what are his or her responsibilities? How long has that person managed the park?
- If the utilities are not public then you need to get the history of the well and/or private sewer system…i.e., when were those systems last upgraded and who is responsible for monitoring and maintaining them?
- What flood zone is the park in? You can check this yourself by entering the address of the park into the FEMA Flood Mapping website.
- How many residents are carrying a delinquent balance?
- How many evictions have there been in the last few years?
- You need to assess the demographics of the location of the park by going to Bestplaces.com.
- Absent seller financing you need to really research your cost of capital and what type of lender may give you a loan.
If you find a deal you can direct message me and I’ll send you my e-mail. I’ll help you evaluate it. I’m still learning myself though. Much to learn in this business.