Due Diligence

We are looking at a park that is quite a distance from us. What part of your due diligence do you do before visiting the park and how much do you do before you run the test ad?



Leighnae -

We don’t visit until we have it under contract. We don’t even run test ads (usually) before getting it under contact. If the deal looks reasonable, put it under contract. Don’t let it get away. Then once you know you have agreement as to price and have it under contract, you can go on-site and follow Frank & Dave’s ‘30 Days of Due Diligence’ manual from that point forward.

To your continued success,


To piggy back on Leighnae’s thread - and a return question to you Jefferson - Can you find a reasonable deal that has been listed awhile? Some of the parks I have been looking at have been listed a month, some 6 months and 1 was even a year! Does amount of time listed matter?

It varies. It never hurts to make offers that make sense for you.

I’ve just gotten under contract a park that was listed on MobileHomeParkStore for a number of months, and then pulled off-market. We offered less than asking price. It currently shows as being an 8% cap deal (not great), with very few POHs, but it is poorly managed (60% expense load) and is in a very strong economy and in an excellent school district. So with very little investment, I think it’ll be a 12% cap rate under my management. We’ll do a bit of infill and get the cap rate into the high teens.

And it was just sitting there all those months on the internet …

Onward, upward,