All Forum Posts by: Cole Stoneman

Joel-  thanks for the commentary.  I will own the property and they will do a lease purchase.  And the risk is latter of your examples.  Good idea on the phase one.  That will be ordered.  Thanks again

Yes this particular business has been operating all in cash in a bad location. Basically running their books all wrong trying to show no income thinking that it is a smart thing for some reason.  They finally have an accountant to run their books and the business is profitable.  They have the cash and the business but no credit.  I'm leaning at doing the deal as I'll come in with no expense and if the deal goes south then I have the down payment on the 260k and not the 229k that I am buying it at. He is basically using my good Credit.  Also if it goes south getting a renter is a bit easier with the location.  Strange one that's why I posted it.... thanks for the thoughts gents

I have a deal that I need help analyzing.  It's a commercial property on main st. in a town of 50k people. It is a mechanic shop with lifts, ect...Great location

purchase price- 229k with 20% down paid by the person who I'll be renting it to and will be selling to in 3 yrs for 260k.  My financing will be 1300/month amortized over 20 yrs at 5.85 percent interst and the renter/future buyer will pay me 1800/month 17 yr amortization schedule at 6 percent.   I'll hold my opinion back on this as I need another professional to brainstorm this.

No money down as the future buyer will put this down.

500/month net

future sell of 260k  (3yrs). 

@Meghan McCallum and @Ben Roddey, thanks for the help.  I reached out to a mobile home park buyer and he gave me some great advice....combined that with your advice I'm going to pass on this deal.  I looked at the deal and figured a 9 cap, however this is a very old park and their are some big issues I think will come up. @Ben Roddey you were dead on with the price being at least 100k above what I should pay for it.  Thanks for making my first post on this site a good experience.  Cheers!

Thanks Team-  

Rent Roll
4 plex
unit 1	$ 175.00
unit 2	$ 250.00
unit 3	$ 250.00
unit 4	$ 200.00
Spaces
1	Own	$ 500.00	9 yr occupancy
2	Unoccupied
3	Unoccupied
4	Do not Own Trailer	$ 300.00
5	Unoccupied
6	Own	$ 495.00
7	Unoccupied
8	Own	$ 495.00
9	Own	$ 495.00
10	Do not Own Trailer	$ 175.00
11	Unoccupied
12	Do not Own Trailer	$ 500.00
13	Own	$ 495.00
14	Own	$ 595.00
15	Own	$ 600.00
16	Unoccupied
17	Unoccupied
18a	Own	$ 600.00
18b	Do not Own Trailer	this trailer was abandoned and is that theirs
19	Own	Vacant	rents for 475
20	Own	$ 600.00
21	Own	$ 425.00
22	Own	$ 500.00	Possibly vacant
23	Own	Vacant	rents for 475
24	Own	$ 600.00
25	Own	vacant	rents for 475
total	$ 8,250.00

Hopefully this helps.

Meghan- great to have your insight! My realtor informed me of a mobile home park that will be going on the market Monday. I have an opportunity to get in before it goes on the market. Offer is 540k. Net income would be 48-50k. Individually metered, city utilities, 6-8 available spaces. Any advice on approaching this deal would be awesome. I've been doing my research however I'm somewhat new to real estate . Gracias

I am fairly new to real estate, however I have an opportunity to purchase a mobile home park.  Any advice from the experts out there?  

Purchase price- 540k

Net profit- 101K/yr

What are the pitfalls to avoid?  

No septic, all city utilities.