Posted by gary on March 28, 2005 at 06:01:57:
Thanks Michael,
Nope the park, at this time and on favorable terms, is not for sale.
Yep, the homes are depreciating assets, if not liabilities were it not for the income they produce.
Perhaps there is a way to get an option to purchse added to the lease. Again Thanks
valuing income stream - Posted by gary
Posted by gary on March 26, 2005 at 19:56:00:
I am leasing a small MHP on triple net lease. I am buying the MHs in the park with assumable seller financing. The park produces approx 3k/mo. after all expenses. The homes are older with little actual cash value. I am thinking of moving on and dont know how to value the income stream. Got any ideas?
Re: Older trailers = questionable collateral - Posted by Michael Morrongiello
Posted by Michael Morrongiello on March 27, 2005 at 18:37:33:
Gary:
Can you actually acquire the MH Park itself or is that not for sale? perhaps you can get an option to buy the MH Park based upon your continued performance under the Triple Net Leases involving the parkes Mobile homes.
The rental income stream that is produced soleley from your renting and managing of the older mobile homes within the park while you purchase them via the seller financing is going to be hard to “quantify” as the one objection I am sure most paper investors will have will be with the QUALITY of the collateral that is involved here - that is these older mobile homes which are as you know depreciating personal property assets.
If you can somehow tie in the Real Estate (the MH Park itself) with what you are curently doing, you will be far better off.
Michael Morrongiello