Can you buy part of someones RV Park / mobile home

Question

I came across someone who owns a RV park and wants to sell somewhere in the future.  I was wondering though lets say someone wants to sell but not completely could someone buy like a percentage of there park ?  Is this done often or and how would it be done.  For example lets say they have 100 Pads could someone buy like 10 off of them.  And how would they make that theirs if its still under his property ??

Henry Clark · Answer

OP.  You’re in Texas. Great.

Commercial lenders want experience and a solid track record.

You should start small and grow.   Determine your RE strategy and don’t hop around.   Learn it for 5 years then add another angle to it.

If you want to do mobile homes recommend the following.  Since you’re in Texas buy an Offlist property of 1 to 2 acres in the country side.  Layout lots and out in water, sewer, fiber, electric etc.  The money is in the lot rentals.  Try not to own any units.  Do this.  Get your systems down.  Then start to grow.

Evan Polaski · Answer

@Luke TamezIn theory, you could split off the 10 pads legally, through a lot split, but the issues would compound.  Who is managing those 10 pads?  How are the access, utilities, etc worked out, since they are likely common across the property.  The logistics and legal workings to do that would be massive and not worth the hassle, more than likely.

So what Ron noted is the best option.  10% might not be the right number based on a ton of factors: not just the excess land, but similar.  You would have to figure out what percentage is fair.  Technically, you will not own those 10 pads.  You will own a small share of ALL of the pads, land, other parks, etc.

Luke Tamez · Answer

@Henry Clark thanks

Henry Clark · Answer

OP. 1.  Traditional sale will be 25% down with the bank for the whole property.  Since it would be a commercial loan.  For a partial sale you run into issues of surveying, subdividing, easements possibly on road access, sewer, water, gas, fiber, etc.   No one would do that.  Devalues the rest of the property.

2.  Owner finance they may take 10% down for the whole property and hold a Lien against it.

3.   SBA loan you might get with a 10% downpayment.

Have you run numbers?  You should run your numbers first before researching anything else.  You might do your deal analysis.  Then post in here and ask for input.

Henry Clark · Answer

OP.  Try your question differently.  Is this the owner or you trying to figure this out?  What is creating the question?  For example.  Is this coming from you and you only have funds to buy say 10%?  Or is this coming from the seller and they want some cash now?

Luke Tamez · Answer

Coming from me and only have funds to buy 10%

James Jones · Answer

You can’t buy “10 pads” inside an RV park unless the land itself is legally subdivided.

What you can buy is either:

A percentage ownership of the entire park, or

A long-term lease or master lease over a section, but not the land itself.

Here’s how it actually works in the real world:

1. You can’t buy individual pads unless they’re separate parcels

For you to “own” 10 out of 100 pads:

The land would have to be legally subdivided into 10 separate parcels

Each parcel would need its own legal description, utilities, and tax ID

The city/county would have to approve the subdivision (they almost never do)

RV parks and mobile home parks are almost always one parcel, meaning you can’t carve out 10 lots and sell them like condos.

2. What is common: buying a percentage of the whole park

This is done all the time.

Example:

If the park is worth $5M and you buy 20 percent, you now own 20 percent of the entire business and all 100 pads, not specific pads.

This is done through:

A membership interest purchase (LLC)

Partnership agreement

Operating agreement

You become a co-owner, not the owner of specific lots.

3. Another option: Master leasing “your” 10 pads

If the seller wants to keep the park but sell you some income:

They can give you a master lease on 10 pads.

You:

Control those pads

Collect the rent

Manage them

Pay the park owner a base lease amount

You don’t own the land, you control the cash flow.

This is common in RV parks and storage facilities.

4. Fractional sale of operations ≠ fractional sale of land

Most people confuse these two.

You can buy part of the business.

You cannot buy part of the dirt unless it’s legally divided.

Bottom line

Buying “10 pads” physically is almost impossible.

Buying part of the park or the income is absolutely possible and very common.

Luke Tamez · Answer

Oh okay thanks i understand

Luke Tamez · Answer

@James Jones thanks that makes a lot of sense

Can you buy part of someones RV Park / mobile home

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