If I were to sell a mobile park development with all permits, plans ready to go how do you value it? SW Michigan 110 double wide lots with space for attached garages if needed. City utilities approved. Adjacent 3 star communities full at $400 lot rents. This is easily 4 - 4.5 star if wanted to make it so.
I might value that at $1,000 per lot, so $110k? How much did you spend? I bet more than this.
Agree with @Brandon. Although I’m sure you’ve jumped through your share of hoops, this project still has probably 8-9M to get it to the finish line. Just curious, I’m in Kalamazoo, where is the property?
I would be interested in discussing with you. I’m currently developing a community in Ohio. Can share ideas. Jparrish@parrishequities.com
I’m in kazoo also!!. Property I’m developing in SW mich. Money is cheap right now My belief is this best time to do this. I’ll build in subsections right now.
I’ll email you. Would be good to compare notes.
Curious…are you looking to sell this property? JV? I am a licensed plumbing and mechanical contractor and also have a property under contract to sell and looking for place to reallocate proceeds.
Valuation when using the fha207m Loan guarantee program for funding by PRIVATE investors, up to 90%LTV, Non-recourse combination Construction to 40 yr Permanent financing is based on market rents:
Gross annual income,
Less 10% V&C
Less Operating expenses
Less Maintenance Reserves
Less 5-7% External Management (pay yourself)
to create a hypothetical Net Operating Income (NOI)
Based on how the lot rent plus typical home payments
are as a percentage of the NOI, the loan principal
can be up to 90% of a market rate 40Yr note to cover
hard and most soft costs for new community
development or 90% of the value of an acquired existing
community including 90% costs of rehabilitation.
$8-9 million dollars? That’s seems extremely high…unless you’re assuming bringing in 110 new homes right off the bat. I’ve heard $14-$16k per pad to develop a new park.
I did not receive your email. I would be still interested in sharing notes.