Park is being purchased - Posted by Jeff_AL
Posted by Jeff_AL on October 09, 2003 at 16:25:22:
I am pretty new to the MH biz, but I have 4 mobiles in the same park. This is all I have currently. Anyway, I have a very good indicator that the park may be purchased and closed. The park is 250 spaces with about 80 park owned and the rest are either owner, or investor (Lease-Optioned) to the tenants. This includes the four I own. I am currently rehabing one and One is vacant, the other I feel that I will get back within two months. So, three will be three vacant and one occupied. My question is…how can I best protect myself if the park does sell? The information concerning the sale is confidential at this point. I obtained it by keeping my ears open at the courthouse.
I am meeting with someone tommorrow to put them in one of the vacant homes. As you know, there is no financing for the older mobiles, people do not have the cash, so like Lonnie says I sell the financing, or lease/option. I just started doing the Lonnie type deals in May, so the homes I have currently still have about 12K in them. If I have to move them, thats a pile I do not have and that would eat the profit to zilch. So, do I hold out to sell for cash, (not a likely scenario), do I lease option, or do I sell Lonnie style?
By the way, the reason for the interest in the park is because of the location. New four-lane, long range plans call for apartments or office park. The park is in fairly good shape, the owners manage the park, and the husband does most of the maintenance himself. So, if the investors who are looking at the park make a substantial offer, I can see the seller’s motivation. The owner lives in the park and owns 80 of the older homes. One problem is few of the local parks will accept mobiles older than 10 years. Am I stuck?
Any ideas or comments are appreciated.