We are in the process of putting a massive turn-around 50 space park under contract and the owner is wanting us to enter into a master lease with purchase option. This project is probably one we are going to flip without ever owning because it is too far away for us to feel comfortable tackling a turn-around of that magnitude. In any event, I wanted to get some thoughts on a concern I have with this purchase structure just to protect the future buyer.
This park will likely take $150,000 of upfront capital to get turned around. My concern with the MLO is what are the buyer’s remedies if the seller breaks the lease after the park is turned around? What would that court battle look like? and, are there specific things we need in the agreement to protect the buyer? I need to be sold on this purchase structure a little before we move forward with these sellers.