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Posted about 9 years ago

It's Been Awhile

Hey everyone my apologies for the lack of updates. The Christmas season has been a whirlwind and writing on my blog was one of those things that kept getting pushed back. Now that I am back in the regular swing of things it's time to give everyone an update on where this property is at.

So as we enter 2015 this property is progressing slower than we would like but we are plowing through. Our diligence efforts are nearly 100% done but we still have not even started our 60 day due diligence period on the property. Yes you read that correctly our diligence efforts our near complete but we haven't even eaten into our 60 day period at all yet...Why? That's the beauty of event driven contract language. We have in our agreement that the seller has 10 days to perform and if they don't our due diligence period doesn't start until they do. "Perform" in this case means send over all the documents we layed out as part of the contract that enables us to perform our examination of the property (tax returns, rent rolls, P/Ls, etc.). So with that being said it is good and bad. Good in the sense that we will have the full time period to review all of the information provided. Bad in the sense of I WANT TO CLOSE ON THIS PARK! So as it goes we play the waiting game until we get the remainder of the information we need.

An interesting update is that while reviewing the numbers it was revealed to us by the sellers that most of the documents they sent over were for a number of properties they own not just the mobile home park. So that changes the numbers again! This time though it was a change for the better. The gross revenue went down but the expenses dropped even more. Resulting in us adding a great deal of income back into the property and having us to re-work our valuation for the property yet again. With that happening we are much closer to the good deal we thought we had initially. This puts us at closer to a 12 cap in the currently agreed upon pricing. Things could still change based on the diligence items we have yet to recieve but I don't think things will change that much.

We also started a few weeks back to begin to acquire financing for the property and that progress has been slowed tremendously by the holiday season. That being said if anyone knows of hard money lenders, mortgage brokers or bank officers they would reccomend please feel free to post in the comments or shoot me a message via Bigger Pockets as we are always looking to work with great people!

The last thing I wanted to touch on today in the blog is verifible demand. A good deal is only a good deal if there are actually folks in the area who want to use your product. We check this by running a test ad on both Criagslist and in the local newspaper. We were pretty floored by the interest this property has generated and we haven't even put the ad in the paper yet! We actually received a number of calls on both New Years Eve and New Years day which was something I certainly wasn't expecting. So needless to say when we transition the out of service units into service they should rent at a fairly quick pace.

That's all for me today if you have questions or any way that we can add value or help as you do what you do please don't hesitate to let us know. Thank you so much for taking the time to read my blog I greatly appreciate you spending time in your busy life to read my thoughts. I hope you guys are all geared up for a great 2015!

Ryan


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