Posted by chris on June 09, 2000 at 24:24:44:
there is an existing loan of $33,978 with payments of $500 weekly at 7.25% - will be paid off in 2001
chris
L/O numbers. Where do you start? - Posted by chris
Posted by chris on June 06, 2000 at 09:52:17:
I am going to make an offer to lease option a MH park and would like to know how to structure the lease amount and the option amount. Any input would be much appreciated.
Thanks.
- ask price $660,000
- owner willing to sell and finance 65% of price at 8.5%(negotiable) with 1% cap above prime for up to 20 years.
- there are 66 spaces and 60 of them are filled - all privately owned.
- yearly income is $106,981 ($118,000 with 66 MH’s)
- expenses are $34,000/yr
- there is an additional 30 acres of land adjacent to the park for future expansion(not included in price but buyer will get first option to buy the land at a later date)
- park is one of two in a city of 13,000 people. other park has approximately 150 lots.
My plan is to fill the open spaces with MH’s that I finance using private investors.
I thought about splitting the current yearly profit and paying about $35,000/yr for the lease and putting up $10,000 for the option. are these numbers reasonable? the owner is retiring and has had the park for sale for about 2 years - he is open to exploring a lease option.
Chris in Canada
Re: L/O numbers. Where do you start? - Posted by Jim Rayner
Posted by Jim Rayner on June 07, 2000 at 06:50:42:
chris,
Is there any existing financing on the park? Need this as it is a factor involved in putting together a reasonable Net Lease / Option Offer.