My partners and I have an option on a 150 acre parcel of land that is currently zoned half R10 (approximately 3 lots per acre) and half commercial for $2,000,000. Half of the property has been designated wetlands, which is why it is so cheap. We can mitigate the land using land from an associate of ours this will allow us to mitigate the entire property.
Once the land is mitgated we will have six 10 acre parcels that are along US 101, which is the hiway that runs up and down the Oregon Coast.
One 50 acre parcel that will be used to bring in a big box store ie. Wal-Mart, Home Depot, etc.
That will leave us with 40 acres that we want to develop a 100 unit manufactured home park. A comparable park that is 2 miles away from our proposed location is currently renting at $375/month. Commercial property along 101 is scarce but a recent purchase of a 5 acre parcel went for $4 per sq/ft. We are looking at selling off a majority of the commercial property as it would make a great auto mall or similar type of development.
A friend of ours is a manufactured home seller for Fleetwood. He’s agreed to sell us the homes at $5000 over cost. Our local bank will finance these new homes at 80% LTV and allow us to carry seconds at 20%. This should allow us to create notes at 8-10% and allow buyers to purchase homes with minimal down payments. Ideally we will carry back $20,000 per home x 100 homes or $2,000,000 at 10%. We do have a proforma and plans for the park.
We’re looking at a creating an LLC or Joint Venture but are open to other ideas. 1031 is also an option.
We do look forward to attending an upcoming bootcamp and meeting many of you!!
Thanks for your time and this great website for like minded individuals!!!
I will be out of town next week but will check this often. Please email me if you need any additional info.