Advice on park purchase - Posted by Clay

Posted by Clay on August 31, 2001 at 22:50:36:

I think I am going to get the park. The lots can be sold seperatly, however I think I will hold on to the lots, and put 14 x 70s on them and lease option the homes.

I have 1 agreement to purchase 5 lots and get bank financing 90% 7% 15 years. The seller is going to finance the other 5 with no payment or interest for 1 year then 7% 15 year amort and 60 month baloon.

If this is something I should avoid please let me know, in a few days it will be too late.

Advice on park purchase - Posted by Clay

Posted by Clay on August 21, 2001 at 15:55:30:

I think I am about buying a park. Offer not yet accepted.

Please advise if I should withdraw offer of if this sounds like a good purchase.

10 lots : 2 rented out for $60.00 mth (market rent $100.00)
3 junker homes
2 that might be fixable!
3 vacant
All lots are deeded seperatly, and have water taps and septic tanks, and all but 3 have power poles.

There is another lot with a dubble wide on it I can get for
an additional $20,000. This lot not included in my offer becouse my purchase would be subject to an existing option with purchase price of $27,000.

I think my 50,000 offer is going to be accepted.

Re: Advice on park purchase - Posted by Ernest Tew

Posted by Ernest Tew on August 21, 2001 at 17:10:26:

Clay, I don’t have enough information to determine whether or not the 10 space park could be a good buy. If the market rents are only $100 per month, $5,000 per space is no bargain.

If the property consists of 10 separate lots with water and septic tanks and could be sold separately, it could have profit potential. If that is the case, you may want to consider putting new or late model homes on the lots and selling home and land packages.

You might be able to make a profit on both the homes and the lots if the market is there.

You may want to read the various postings on the mobile home forum about parks. You will find a lot of good advice.

Good luck