I am in the negotiations for a mobile home Park with a considerable quantity of Park owned notes and POH’s. The seller of course claims that these are worth far more than they are. He is willing to carry a portion of the purchase price. My thought was to have one entity by the mobile home Park for a price minus what he thinks all of the notes and homes are worth and then have another entity by the notes & the homes and secure his seller carry with those notes & homes. I wanted to structure the purchase of the notes & homes such that he is paid on a performance mortgage based on how those notes and homes perform. Has anybody ever tried to structure something like this and if so do you have any suggestions or input.Many thanks - Tim King
Tim,Good strategy.A performance mortgage is a great way to help ‘keep the seller honest’.If the notes don’t pay, you don’t pay.Why not put the entire park on a performance note and mortgage as well?As my old Grandma used to say – It couldn’t hurt!Keep us posted,Mike Weiss