Frank and Dave offer a book on due diligence. My question is if you are buying a park that is being seller financed do you still do all the same due diligence?Any input from those who have done due diligence on a seller financed park would be appreciated.thanks,Lynn
Yes, absolutely. You always want to do very exhaustive due diligence. Seller financing can change the impact of your findings in due diligence - ie: something may be a deal breaker in a deal with a bank financed recourse loan with 25% down whereas it may not kill the same deal if it has non-recourse seller financing with 0% down.
I have in my hands F&D’s 30 day DD training. Any tips on what else to do? Not meaning to hyjack the posters thread but this is all in the same direction. My park is 27 pads all lot rent, all tenant paid utilities. A clean deal. I might be over simplifying to think there’s little to do during DD? I could run the camera through the sewer pipes since the park owns those to the lot line to the city.
We follow that manual to the letter on every deal we buy. Skipping any steps is as dangerous as a pilot failing to go his pre-flight inspection. You can never do enough diligence on the market itself – if you have spare time, know more about the market than the Chamber of Commerce.
Thanks for the input Frank, Lynn