I am looking buying a park with a few homes that were previouly POHs that the owner has sold to the tenents. I am comfortable with the valuation, but have a few questions:
Is there a way to buy the park, without taking on the compliance risk associated with the SAFE Act? In other words, can I buy the park and notes, but the park seller would retain all of the compliance risk?
Secondly, I know that it has become harder (if not impossible) to move homes into vacant lots and seller finance. Doesn’t the same issue apply any time a tenent moves out? In other words, if a tenent moves and abandons the trailer, you can reclaim the trailer, but are left with no ability to assist the next buyer with financing. How does financing work when a tenent simply moves out of their home?
Finally, there has been a lot of discussion about major metro areas vs rural. What are your thoughts on a park in a section of a major metro area that is a hotbed of MHPs? This park is surrounded by other parks (some nicer, some less nice). All are 1-3 star parks. All of the parks in the area are full or close to full, so demand is high. Thoughts?
-Ed aka Kukadog