We are currently in due diligence on a property and the owner has multiple parks that use the same bank account. The deposits are also, random large sums.Any suggestion on how to reconcile? If not able to be reconciled, do you look to get a discount on the overall price?
The hardest thing to get a handle on with parks is the historical rent received. The only true facts you have is the number of homes on lots and, to a lesser degree, how many of those have a tenant in them. Assuming the homes are pre-1995, it’s a safe bet that they are paid for and have no risk of bank repossession (and nobody else has the $5,000 to move them). So you can ultimately get comfortable on the revenue going forward, but there’s no way you will ever know 100% what the rent was like going backwards.With bigger players with computerized records, it’s not much of a gamble. But with mom and pop and pencil-written statements, it’s a whole different story.The key is to buy the parks really well (cheap) so that you can afford to be wrong to a small degree.