I’m almost to getting my first Park under contract. We’re still finalizing the pricing. My issue is the park owner is doing lots of renovations, renovations that will take until 2022 to complete. These will benefit me but what I don’t know should I put him under contract for the next 4 or 5 months? I feel like I need to do something in case he wanders away and takes another buyer. Does anyone have any advice?
My last deal I set the close for 90 days and it ended up taking about 140, so yes, I would 100% write up a contract for a 6 month close. Just make sure it is abundantly clear the work that will be completed and what happens if it is not (do you extend, price decrease, etc). I would also ensure you were on site and inspecting work (especially anything underground) to make sure no short cuts are taken. Or just knock the cost of the improvements off and do it yourself (probably the best idea really)
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Thanks for the advice, I’ll go with what you have done.
You can also give the guy some money for the option to buy the park later.
Ie. I’ll give you $10K for the option to close for XYZ terms in June of 2022.
I have a deal that went under contract in February that is scheduled to close in September. Not fun, but it should close.
I know that I’m a bit late to the party here, however in an event like this, try to add language to the contract that allows you to sue for specific performance if the seller defaults.
In that case, you could sue to force him to sell to you if he tried going to someone else.