Re-post: 55+ parks - Posted by Lin (OR)
Posted by Lin (OR) on September 15, 2004 at 22:29:30:
The first deal I ever did was in a 55+ park. It took me three (sleepless) months to sell, but I sold it to a cash buyer and made a profit of $2700. (Bot $2300 + fix-up of paint and carpet + holding costs, sold for $7900.)
The next time I bought in a 55+ park it took me 6 1/2 months to sell, but again, I found a cash buyer and made $3500 profit. (Bot $3400 + no fix-up + lots of holding costs, sold for $10,500.) This time I slept reasonably well.
Here?s what my experience leads me to believe about the buyers in senior parks:
1.) They?re pickier about the condition of the unit ? they don?t want to do fix-up, which is understandable.
2.) They?re pickier about the quality of the park, and the affordability of lot rent.
3.) There is very little interest when it?s cold and rainy. Be prepared to wait it out, if applicable.
4.) They tend to have cash, and the ones who don?t and need financing didn?t meet my park?s income requirements, reducing my qualified buyer pool even further.
So yes, your pool of qualified buyers is reduced, but you can still make money even if you overpay, like I did, and are a slacker about marketing, like I was. I had ads in the paper, but did nothing else.
If I were to continue to do deals in senior parks I would be VERY particular about the quality of the park and the condition of the home. I was make sure I got a great deal on the purchase, because I can count on 3-7 months of holding costs, and more if I buy during fall/winter.
Search the archives for posts by Chuck in Arizona ? his earlier posts were a little meatier than they are these days, but I still appreciate his experience, if not his tone!
Hope that helps.