Hi MHP folks. I bought MH Universities 30 day DD kit that comes with a P&S contract. The DD kit info is great and essential to success IMHO. Hair raising and funny real life stories, but you know this already. The electronic version is an incredible value. My business partner then bought the rest of the training… In comparing this contract with ones used by sophisticated multifamily buyers which is my background this is the list of issues I see that are missing from this MHP P&S contract. Note that I’m mentioning these issues because they are common place in bigger MFs and the riskier MF deals so I ask why not in MHP P&S contract as well.- Seller escrow account (or pay from the carry back financing payments) guaranteeing rents for 12 months. In MF the risk is that the seller loaded up dead beets to get above 80% and they all will disappear or stop paying after closing. Or in MHP that half the park is the owner’s relatives, have sweetheart deals or similar and they all leave after closing.- Seller escrow account guaranteeing park utilities (water pipes, septic systems) for 1 year. Too many stories of post closing park blow ups with “known before hand” utility problems.Any other issues you as a buyer would like to have some seller assurances that all is as it’s being represented??I’m not saying the Seller should back stop all normal stuff happening. If the park is in good operating order then a seller should not have a problem saying that after some $$ amount of systems failure it’s coming out of the purchase price after the fact. In an owner financed situation the cash flow is there to divert to cover the contracted problems. In MF seller financing is now rare so the P&S and closing has to set up actual escrow accounts. That’s not needed when the park is owner financed thankfully it’s much simplier.Feed back?
What makes this forum great is that a ton of ideas are tossed around. I have no problem with adding those items in, if someone wanted to. I think you may have some push back from sellers, but if you can get away with it, why not?