Posted by JD (IL) on November 17, 2005 at 22:11:53:
Amy,
Best of luck on the auction, sounds like a great plan. Please turn your caps lock off though. It comes across as yelling in text and is tough to read.
Good luck!
Jody
ARC AUCTION - Posted by AMY
Posted by AMY on November 17, 2005 at 12:12:54:
HOWARD POSTED SOME INFO AS A PAST AUCTION PARTICIPANT. ANYONE WHO WENT BEFORE, I HAVE QUESTIONS. WHAT WERE HIGH AND LOW CAP RATES, AND WHAT WERE THE HIGH BIDDERS CAP RATES AS COMPARED TO THE SUGGESTED OPENING BIDS? I AM NOT FAMILIAR WITH CAP RATE AUCTIONS, BUT IT SEEMS THE BEST WAY FOR THE SELLER AND AUCTIONEER TO MAKE THE MOST MONEY. DOESNT SEEM SO FAVORABLE FOR THE BUYER THOUGH. I AM INTERESTED IN (AT LEAST) ONE PARK. ANYONE WILL SOME INSIGHT INTO PAST AUCTION ID LOVE TO HEAR ABOUT IT.
Re: ARC AUCTION - Posted by Howard
Posted by Howard on November 17, 2005 at 12:23:56:
The auction in which we bid on 3 properties was a typical price auction, not cap rate. The problem with the cap rate is “cap rate on what?” The net income figures are pro-forma and annualized. In addition, you will need to buy the homes. You need to see what the price is for that. Sheldon Good (the auction company) sent me the realized prices for the past auction about a year ago. I don’t have them, but they should be willing to send them to you. The starting bid is low (and irrelevant). It only has importance in how much escrow you have to send in prior to bidding. I don’t know who bought at the last auction, but the price was much too rich for my blood. I do have 6 parks, so I have some experience in their worth. Good luck.
Howard
Re: ARC AUCTION - Posted by AMY
Posted by AMY on November 17, 2005 at 18:30:42:
THANKS FOR REPLYING. SO WHAT I THINK I AM HEARING IS THAT THE SUGGESTED OPENING BID, IN YOUR OPINION IS LOW? SO DO YOU THEREFORE THINK THAT THEY WILL SELL AT A CAP RATE SUBSTANTIALLY LOWER THAN THE SUGGESTED CAP RATE? I THINK I HAVE DONE MY SHARE OF RESEARCH ON THE PARK I HAVE INTEREST IN, AND THE COST OF THE HOMES IS A BIG FACTOR CONSIDERING ANY PROSECTIVE BUYERS WOULD PROBABLY HAVE THE CONTACTS TO BUY THE SAME HOME AT A MORE DISCOUNTED PRICE. I GUESS I HAVE A DOLLAR AND A DREAM, YET IM NOT FAMILIAR WITH THIS CAP RATE PROCEDURE, TO THINK WE ARE ALL BIDING AGAINST EACH OTHER, YET MAYBE NOT. WHAT DO YOU THINK? ARE THE BIG COMPANIES GOING TO COME BUY MANY OR DO YOU THINK MANY WILL BE SOLD INDIVIUALLLY?
Re: ARC AUCTION - Posted by Howard
Posted by Howard on November 17, 2005 at 22:12:52:
My sense was that the last auction sold mainly to individuals. I do know that several of the major companies did send some people to the auction. I don’t know whether they bid or were looking to sell their own parks the same way. Your success may depend upon the size and location of the park in which you are interested. I am not attending or bidding this go-round. I may be able to give you some more info off-line if I knew where you are located. I assume you are looking at a park close to home.
Howard