Re: TROLLING FOR IDEAS - Posted by Anne_ND
Posted by Anne_ND on April 15, 2007 at 07:40:35:
I’ll assume you have done preliminary due diligence on this park.
If the park met my criteria, I’d go for private funds or use my IRA money, then put the offer in writing with at least 60 days to close. Don’t forget to include the phase I contingency clause (bank will probably require this anyway) and the financing clause.
If you are not clear on due diligence for a MHP I suggest you purchase Ray Alcorn’s book, available on this site. It has a great check list.
Just be sure you understand why the seller has this park “undervalued”- there are so many things that can be hidden in one of these deals.
As far as the money, I suggest you bring in a partner who gets some percentage of ownership in return for at least 20% of the purchase price, and a co-signer on the loan. The extra funds will be needed for repairs, etc. It would be ideal if the person who had the money also has experience evaluating commercial deals and could help with the due diligence.