First MHP investigation, need LOI example, issues to be handled

Hi Folks,  I plan on writing an LOI on a 90 or so pad MHP in GA, 80% park owned single wides.  85% occupied and the pro forma has it at 10% cap rate.  All needs to be investigated.   I will buy the due dillence training.I’m needing a LOI contract that includes your expert inputs.  I doubt the Broker will set me up with the best contract.curt@sweetgumproperties.comtnx

I recommend you write a contract and not use a LOI. As an owner of parks, I ignore anything except a contract…

I agree with Jim Johnson:'I recommend you write a contract…'I am a South Carolina Real Estate Broker and I own a South Carolina Real Estate Company.Either use your State’s Agreement to Buy and Sell Real Estate or use an Attorney to write a Real Estate Contract.  With either of these options write a lot of ‘Contingencies’ such as:-  Contingent on Financing-  Contingent on Legally Zoned Mobile Home Park-  Contingent on Due Diligence-  Contingent on # Of Clear Mobile Home Titles-  Contingent on Public Water & Public SewerAlso, be very detailed about your ‘Contingencies’.  Give specific time periods such as 30 Business Days or 45 Consecutive Days.  Also, specify that if you determine not to go forward based on any of your Contingencies then you will receive all of your earnest money back.If the Seller is using a Real Estate Agent to sell the property, consider finding a State Licensed Real Estate Agent who is knowledgeable of Mobile Home Parks to represent you.In South Carolina it is the Seller who pays the real estate commission for BOTH the Seller and the Buyer.We wish you the very best!

The due diligence training has a great contract that you should have your atty review. It covers all the important areas for your protection.

We don’t use letters of intent, as they are not binding. Use a real contract.

Thanks Guys, I bought MHU’s 30 day DD kit.  Got your feed back.  Thanks Kristin for the detailed tips!!Thanks alot. curt

I like to have copy of such contract which I can manipulate according to my situation.if i have to pay ,i will.