I have a question concerning potential lot size. As you all know, I’m buying a park with plenty of room for expansion (125 acres), and while I’m not
striving for maximum density for units, I do want to be able to place enough homes on the land to create a nice cash flow after all the dust settles.
I will be installing 16 x 80 ft. homes initially, and I’d like to determine "how
many" I can reasonably plan for per acre, and still leave room for any future expansions the owners may want to add down the road. I see a lot
of sunrooms in most parks added to the front door side, and decks off the
backdoor side. ( I may be adding these myself as a selling feature.)
Corey suggested I might want to bring in "partners for this deal as well, (and my attorney made the same suggestion.) He (my attorney) suggesred I bring in partners for around $2 million so that we could pay all cash for this park. $1.7 for cashing out the owner, and the balance for carrying expenses while we’re in the planning phase, and arranging permanent financing for the project.
Question - If you guys were considering a partnership deal like this, what type of terms would YOU like to see to induce YOU to get involved, and what type of safety net would YOU like to see in place to cover your
ass(ets) in this venture?