Which deal would you fine folks choose?
The first deal is a 28 lot park with 100% of the lots filled, none are park owned. 100,000 population. It has well water and city sewer. The worst part is the seller will not carry the loan under any circumstances and will not change the price. He’s a bit stubborn to say the least, but the numbers still work. Since it is a smaller park, the only option is local bank financing with about 30% down, recourse, 6%, 20 year am, 5 year balloon.
The second deal is the same price as the first with 30 lots, 100% filled, none park owned, 120,000 population and well water. The worst part is the septic with a $26,000/year pumping bill. The owner prefers to carry the loan to avoid capital gains tax although we have yet to discuss specifics. I feel that I can get better terms on this one with non-recourse and an assumable note.
Thanks for the help all!