Hi,We are looking at purchasing a park with a purchase price of around 1 mil. Excluding the escrow costs what are the typical due-diligence costs associated before closing on the park? I am looking for a percent value of purchase price or $ number.I am thinking Due diligence costs associated would be Phase I, All Inspection costs (Infrastructure) , On-site diligence (travel and other expenses) anything else missing here…Thanks in advanceMuviInvestor
All covered in the bootcamp and home study course
I’d definitely not buy a MHP without first attending Bootcamp.That said:* Phase 1: $1,500 - $2,000* Appriasal: $2,000 - $2,500* Survey: $1,000 - $2,000* Legal: $1,000 - $5,000 if you use an attorney* Inspection Costs: This is typically something you would do yourself, so it would be whatever your travel and hotel costs are. You might do a sewer cam, that’s about the only thing you can’t do yourself, and that can cost $800 - $2,000.Best,-jl-
I think surveys are running higher than that…true generally? I’m getting quoted $2,500 at the low end.
Try much more for ALTA surveys and title insurance and also Chicago Title.
Thanks for your comments.@Jefferson: Appraisal and Survey should be part of closing costs right? They are done as part of lender requirements before closing on the park. I was specifically looking for costs associated with due-diligence like you mentioned Phase-1 and Inspection costs. ThanksMuViInvestors
Appraisal and survey are part of DD also.
It;'s amazing how much the cost spread is on these things.
My highest estimate for survey was $6,000, my lowest was $998.
Phase 1 varied between $1,000 and $2,500.
My suggestion is to google the service and location - i.e. “Surveyors in Memphis”. Then send out 15 or more emails, keep track of who you emailed so you don’t double or triple email the same person.
I did it that way and had really great luck. For phase 1 I used:
AAI Environmental Corp.
3030 River Road
Ashland City, TN 37015
Great price and service.
For Surveyor I used a local company that came back with a great bid.