West Plains, MO · Member since 2017 · 14 posts · 8 votes
Hey Bp folks. I'm trying to negotiate my first deal on a mobile home park and have made offers and several counters, and now we are getting close, about 20k off on $270k deal, but now the seller lists to NOT prorate the rents. I am willing to go up to 260 or even maybe the 270 but not sure what to do about not prorating. Is this something I can't tolerate? Closing to be on 19th. I will surely appreciate any advice you guys have.
What's the actual dollar value of that 11 days worth of rent? Just keep that figure in mind when deciding what your max counter offer is going to be.
The only thing I'd want to confirm is the very unlikely situation that several tenants have pre-paid the next several months in advance. If so, the seller might try and keep those funds as well.
What's the actual dollar value of that 11 days worth of rent? Just keep that figure in mind when deciding what your max counter offer is going to be.
The only thing I'd want to confirm is the very unlikely situation that several tenants have pre-paid the next several months in advance. If so, the seller might try and keep those funds as well.
Also the security deposits will become your liability when tenants move out. LOL
Make sure no water or utility arears, taxes are current. Call municipallity zoning and permit office to make sure this park is current and no munipal actions are pending.
The 11 days worth of rent comes to around $1500. I wasn't sure if there was anything else I'm not thinking of, or just the cash. I've also just found the present owner has the park licensed as a trucking/shipping business. I'm just trying to look at it from all angles and don't want to miss something.
Oh yes, I probably need to add the security deposits to our offer contract. Thanks soooooo much for that reminder. And I will check into the zoning and any pending actions.
Simply build the amount into your negotiations. Ultimately the owner will sell, you are very close at this point in time. you have the ability to make him pay many times over for his stance on pro rating. If he wants the $1500 I would make him a firm and final offer $5K below what I would actually be willing to pay.
He is being lazy and greedy, make him pay so he will have to pay.
My bigger concern would be the designation as trucking /shipping. I would not move forward without first reviewing that with the municipality to have it properly designated.
Remember if you do not already have them you need esstopal letters from every tenant as well..
Jaquita Perkins So never forget to ask for pro-rated rents, ask for all security deposits (review the rents to see whom has paid what), make sure nobody has prepaid for 12 months (yes, that happened to me and I had to ask for a prepaid rent credit in addition to proration for the rest of the tenants), ask for the right to advertise any vacancies during the escrow period, pro-rated property taxes (we are in April), make sure 2016 property tax has been PAID (or get a credit)...I'm probably missing something else...
Think of it as him asking for a $1500 closing cost credit. Does that kill the deal for you? Probably not I would assume. From what you described I do not think there is anything you are missing. Seems like you are just dealing with a seller looking to nickle and dime you.