was amazing!(sorry Corey lol) got to meet two of the three investors in a 170 space park with 77 spaces empty and quickly found out that even these facts were wrong. There are 161 certified lots and thirteen bootleg rv spaces all but one empty. I love these and if I get this Park will rent them out.
Bought Park for 4,65M put just over a million cash down and have bridge financing at 9.675% interest Payments are 30K per month and when they purchased they had 17 empty lots and lot rents were 415 per month included water,sewer,lawn care, garbage. Sweet deal 60K a month income 1/2 debt service, 17 lots to fill, rents to raise, utilities to pass on to homeowners, low interest 30 year mortgage coming. WRONG. Lost 22 homes their first year thru bks, repoes, attrition. Could not find mortgage, bought for cash 11 homes being repoed sold on contract, ran out of money about then.
Today they have a total of 88 filled lots. Of these 88 14 are 6 months or more behind on lot rent AND mobile payments. Property taxes are 7K per month…this Park is bleeding red ink from every pore.
I LOVE THIS PARK!!
We conference called the lender and they were very cordial…said they will reduce principal balance 22% for a cash deal.
I said for 345K I would assume a 1.5M mortgage 6% 30 years and my LLC would assume management of the Park. I would not personally guarantee the loan. My payments would be 9K and with 7K property tax and 1.5K insurance my costs would be approx 20K per month. Currently billing 31K per month so approx 11K cash flow per month to start. Bank rep asked what the 345K was for and I said to poach 100 good tenants from other Parks…my cost is 3450 to break down, transpo, reset a d/w home.
We talked for over 2 hours. Sonds whack but I believe the Bank wants to do it…I talked for over an hour with their legal dept. Uncle Sam has money in place tohelp modified loan originators. Will they bite?
I could care less. There is a TON of work to do and it could still fail if this depression gets much deeper. But I got off the couch (SteveWA) and had a great day…went by Universal and peeked the Harry Potter exhib WOW!!
Great Day, going cave diving tomorrow, how did I do? What could I have done better??