Posted by Evan on June 18, 2003 at 18:44:22:
Next! is a good idea.
Also, remember the park owner has to ( or should have) filed income tax returns of the rent revenues…so that could be a source for determining value.
But, sounds like owner is not interested in selling.
my 2cents.
Evan
Seller of park turns down cash flat out - Posted by jkesee
Posted by jkesee on June 18, 2003 at 17:19:34:
I made an offer on a 7 unit park with no possibility for expansion. The seller of the park owned the mobile homes which were very old and kept now records of any payments that tenants made.I offered 25,000 less than the asking price because it was cash. He would not even counter with another offer. I asked how he arrived at his price but he had no answer .
Should I just go on to the next deal and forget this guy.
They have had no other offers either.
jkesee
Re: Seller of park turns down cash flat out - Posted by Al (Wi)
Posted by Al (Wi) on June 19, 2003 at 22:25:18:
Maybe the seller wants to be the banker & hold paper. Offer him a deal with terms that you can live with.
But maybe not.
Maybe the seller has a problem he dosent want to share with you. If you can find out what it is you may be able to structure a deal he would take.
How long has it been on the market? If it is new, find out what day of the month his highest bill is due (utilities, mortgage, whatever) and hit him with your cash offer again, but 2k lower, 3 days before he has to send in the payment. At the same time give him an offer with terms, like 80k, 2% interest, 30 year term (use your own numbers to get the cash flow you want), this is just an example.
I would be concerned with the payment history of each occupant. Would you like to end up with 100% occupancy and 75% non payers?
A lot of the experienced folks on this board (I aint one of them) would advise identifying what the park is worth to you and walk away from the deal if you cant get it for that. You have the gold, you make the rules.