If you put a camper in the parking contract would in any case, a clause in the contract that allow you to confirm what the seller is assessed with regard to the overall feasibility of the purchase price must have said. Due diligence will address the physical, economic, demographic and market feasibility of the project. This period is usually between 30 and 60 days. In carrying out its duty of care that you are looking for something that is a potential problem and identifyYou can change or repair. This agreement usually stored with cleaning the park (Junk & Trash), mismanagement, lack of enforcement, collections, expenditure which may be reduced.
But above all you are looking for problems that do not resolve may be able to solve or is very expensive. These types of questions usually do with the size of lots, the reputation of the problems in the local market, floodplains, drainage problems, improper configuration of the lots, water,Sewage, electrical, and problems with the gas line.
In carrying out your responsibility to rely on experts in surveying, accounting, marketing, finance, plumbing, electrical, and law.
Ask the seller to provide the following (if necessary) to provide true
1. City, County and State permits and licenses
2. Sewer Plant Records and readings
3. Water Well Testing and Compliance Records
4. Existing environmental reports or investigations
5. Meter reading of water and other utilitiesThe minutes and the formulas
6. Property tax bills for the last 2-3 years
7. Copy of current insurance policy and binder showing premiums and coverage
8. Current list of personnel, including the location, wages, job
9. All drawings and maps of the park and the infrastructure and the size of lots
10. All contracts are for the buyer at closing (laundry, trash, transfer of phone)
11. Rules and signed leases for each resident
12. Statement
13. 2-3Annual tax return
14. 2-3 years of profit and loss
15. Certificates of employment
16. List of capital expenditures for the last 3 years
17. Enumeration of all the current problems of park infrastructure (water, sewer, gas, electric)
18. Rent Roll with a specific number of home site and the name of the resident, move the date, the monthly rent, current account balance, additional cost, the number of occupants and a brief history of the place of residence (residence building / home is bad circumstances, there are specialetc)
19. Names and telephone numbers of all used by all contractors in recent years - plumbers, electricians, propane, gasoline, Roto Rooters
How to obtain this information from the seller, or by other information is received by the court outside.
52 areas of basic due diligence period of time that is not necessarily in order:
1. Park Questions: E 'close enough for shopping, employment, education, transportation. Are potentialResidents can find the park?
2. Plain is the park in a flood plain? If so, when was the last time that was flooded? If the park is flood, the houses are high enough to remain intact? Do the owners have flood insurance?
3. In most cases, the purchase of a park in 100 years or 500 years flood plain does not bite again for you. However, you should understand, however, the associated risks. Most of the time can only lead to your tenant, and Flood InsuranceYour lender will require the equivalent for your buildings and utility connections.
4. Noise problems: strong external noise can often be a deterrent to the park for life in a camper particular. As highways or near busy roads and trains in the vicinity can be very annoying for potential residents.
5. Find out if the park is required to be licensed and, if so, to obtain the required license. To verify that the park is operating in compliance with the license. When a Parkwhich has 50 units, but is licensed only for 25, you can identify the problems. The license may be issued by the state, county, or local authorities. Is often issued with the State Office of Public Health. Some cities have laws that say if a certain percentage of the property is not in a park that has "grandfathered" zoning are destroyed, then the parties may be re-lease. This may happen by fire, tornadoes, hurricanes, etc. Check your local regulations.
6. Reviewing all inspections ParkReports of the Board of Health or any other city / county inspectors carried out. In some states, particularly those in which licenses are needed, the State has an annual audit and prepare a report with notifications of any violations. It 'nice to see that these violations and be sure that they have been corrected.
7. If you are considering the approach of the current administration, it is advisable to have friends or colleagues, make some calls to see a property, how to handle call management. Also,When the manager at home and it was considered not good and have a set of rules for themselves, may be a sign that you should try to manage.
8. After the park under contract, and usually after gaining permission from the owner, is definitely a good idea to interview some of the residents of the park. Are usually full of information, if not find out how the park is really performing. We often hear about water problems, sewerProblems, and other common problems talking with residents.
9. Another good source of information would be the local RV dealer. Usually know most of the parks and can provide information about the call park, though in the past and projections into the future potential residents to park, etc. You can also find out if there are trade-ins, or have to sell others on low cost.
10. If possible, we recommend you visit the parkdifferent times of day, morning, noon, after sunset, as seen in the location of the park like it. You may also want to see the park on weekdays and weekends. This will give a better indication of parking, employment, lighting and noise levels.
11. The local Chamber of Commerce is also a mine of information. You will receive further information on demographic trends, new and current employers, potential plant closures, and general market conditionsRange.
12. Local Real Estate Brokers can also create a range of information about the area and the market and the views of property.
13. Good school districts are often the ideal place for its parks. Often these areas rich areas of the city and the less well off are often in search of affordable housing in these areas will provide their children in this good school districts.
14. Contact Office to examine the property taxes, tax rates, and whether the charges are ongoing.Find out what their assessment procedures, so that what we pay taxes on the purchase, if you can appreciate the park.
15. Be sure to check the rent roll and copies of supporting documents to determine whether the amount will be the actual amount collected is correct. Park owners often forget to tell people that give certain discounts (senior citizens, friends, relatives, etc.).
16. For insurance purposes to be careful to check the animal and the enforcement of these restrictions. MostDo not allow insurance carriers to dangerous dogs or dogs 20-30 pounds.
17. Water lines: what are they? There are signs of water leaks? If the water pressure is acceptable? They often have some areas of the park, where the water pressure is much lower than the others.
You can check the invoices from the utility companies over the same month in a few years to identify any problems / losses.
18. Sewer lines: usually you will have problems withold sewer: clay pipes and tubes of plastic. Clay pipes allow large trees begin to grow roots, begins within which caused backups. Addition, Ton and sewer walled also kill and clog it. You can control a camera have the pipes, and professionally blown jets at high speed, such as periodic maintenance.
19. With electrical service, you want to examine whether the electrical and Soilunder the ground. If above, you are generally responsible for the main electric poles to give a look see on the poles of power, if rot in the ground nearby. This can be very expensive to replace. Another potential problem is that power most of the houses now require 100-200 amp service. Many of the older parks have electric service with 30-50 amp service. This will require, as a rule, which generally costs $ 500 upgrade - update $ 800 in parts and labor a.
20. GasService. If you are responsible for the gas meter and lines, you can pressure the system can be tested as a small gas leak is causing the service to be stopped until it is located and repaired. It 'also a good idea to avoid these potential problems routinely done.
21. Hydrants nearby. One question to ask your insurance company is safe.
22. Trees: You will often see a park that is full of beautiful big trees, and can look more carefully Nice.However, these trees are definitely the cost of the road. You must remove them trimmed, old and dead trees, the leaves of cleaning each year, and the auger sewer lines that are full of tree roots.
Falling branches are often one of the most common requests of insurance.
23. Roads: The roads are in good condition, need to be resurfaced, they are sufficiently large, there are speed bumps, etc? Roads that are not met, will be among the most common complaints thatPlease contact your place of residence.
24. Drainage problems: You should know how to get a mobile home park after heavy rains or prolonged, the sewer system. Although the park is not in an area, can be a terrible problem with standing water and puddles. Discard the excess water can be expensive and difficult.
25. Sewerage systems: When a mobile home park, a sewer existing lagoon or septic tank, this is another area where you can be should be as much as possible. Youwant to know how the system works, if it meets the EPA, what it costs to run, what updates have been made, whether it is operating at full capacity, you must have a licensed operator, how many ports are available For licensing, etc?
26. Pumping stations is enough, have the lights, there are pumps backup?
27. Walk property during the day and night. You can find many problems, such as odors, dog barks, parties, Hidden Trash & Junk,Water leaks, standing water, old electrical boxes
28. Wells are: What kind of system, how deep are the wells, the water pressure, any previous injuries or problems, backup systems, what is the cost of doing business, if the owner of the license to operate there, the operators sector that are available and are working correctly, you can use the upper class, for the operator who receives the permit / license. How much space is allowed for?
29. Who pays what? Utilities, cable, mowing, etc.:Find all the hidden costs that the owners take care of low-cost (not haul the garbage to the dump?) Takes place. When the trash is not pulled out, what people do with it?
30. History of rising rents: rents have increased at regular intervals?
31. Number of lots - some may have been combined, and many parks are odd numbers.
32. Late Fees: Take a look at bank deposits, compare and roll with the rent. When rents are coming are the taxes lateloaded?
33. Caution: get a list of debt certificates of safety for the landlord. And if someone claimed to have a deposit, not in this list, you have written consent from the owner.
34. Control of leases: There is a foreign language in leasing? Are from month to month. There are long-term contracts that make it difficult to increase rents or submeter water?
35. Hazardous materials, not even the purchase of a park, without a phase-1Environmental study done. If there are any underground storage tanks, above ground storage tanks, chemical drums, buried waste, lagoons, stained soil, gas stations, auto repair shops, electrical transformers, asbestos in buildings, etc., could be responsible to the US-Gov 't million for the costs of cleaning.
36. When you think of a park, be sure to check in everything that does not seem right. There are structures that are making no sense, its oil wells on the property, etc.
37. ItYou may also want to obtain a current or recent survey of the park. Want to be sure to buy what you think you have to buy. Are some of your mobile homes on the property line. There are fences or renovated within the property boundaries. With a new owner of owners of adjoining property, you can use this time to force some of these problems. Check the legal status of the survey and with the guarantee agreement and action.
38. The seller says that the property can be extended. Make sure that the currentZoning allows the proposed extension. Also make sure that it is feasible: Where can I find water, sewer, tap and other instruments? If the wells and sewage are able to present additional real estate services. What is the impact fees. What are the likely costs increase.
39. Lot size: One of the biggest problems with large mobile home parks, which were built for 10-14 'x 50-60' homes. Since most of the apartments are the latest 16 "x 80" and higher, this can become a realProblem when changing or filling vacant homes. Addition, some cities / counties require homes to a certain age. Thus, an old 12 "x 50" moves in the park home is not an option.
40. Open sides. There are 50 locations and 10 empty. If those 10 pages ready and able to take a new home. Marked the water and sewer lines? There are gas and electric stoves? Is obliged to accept the power, before they get better a new home. What are the setback requirements? What age homes maybe transferred to the park? Games are in such an arrangement, in which a move effectively in every game without moving some other houses are made?
41. Bound current units? Many parks have large units that are there and have never really been committed and, if installed according to code at all. I saw him twice in the past. One day, a tornado hit one of my parks (actually 2 parks on the side). All in all we lost about 40 apartments of 100 andThe houses that were in fact tied up and installed correctly were much lower than those that were not damaged. Another time we had some strong winds blew one of my parks and 2 of the homes because they are not bound. 42. Street Lights: Drive through the night. Who is responsible for street lighting? Who will be the bulbs. When a light turns off, who eliminated.
43. If possible, obtain a card platform. If one is not available, ask the owner to the best of the draw of hisKnowledge and find all the cleanouts, Shutoffs etc. This is important to have in case of line breaks and other emergencies in the future. The seller can not help.
44. The park is managed using the right equipment? If the present owner has a pickup truck, tractor, lawn mower, make sure that my return to these negotiations as useful in the future and do not have to start all this assumes the desired month. It 'a good idea to get a list of all supplies and getEquipment currently used to operate the park and are out for the purchase.
45. Market Overview: Find out what other parks are charging and what they are finding their jobs to move incentives, reputation, etc.
Compare the cost of rental family homes (SFR), apartments, duplexes, with the cost of purchasing a mobile home and rent a lot to pay.
What does an SFR of similar size in the region for sale. What are the payments for the purchase of a SFR andThe purchase of a MH and pay the rent much.
Also find what other parks age restrictions and types of buildings. Maybe you park in a niche that you fill only new homes or old homes.
46. Visit to see the planning department to see if there are new parks will be built, and the position of a free space for parks and mobile homes, areas of development.
47. If you buy the park and in the process of buying homes to rent or sell, you mayI want to see some teaser ads in local newspapers, city, what kind of response you get, too. If you receive calls, can be a good indicator of the market and the possibility to fill the park.
48. Discover the eviction laws. What is involved in the process: timing, forms required, control, etc. So, to do with the other park owners / managers in the field, what are their experiences.
49. Zoning: Properties may be anywhere in the county wide competition creates will be placed. How oldbe a house to be moved in a circle, and what are the other restrictions in homes sold, moved,
50. Furthermore, if a city or is extended useful in improving your city, is bound to take off, and if so, at what price?
51. Get in touch with local agencies, as they can be a great source of information: the police, planning, construction, utility and construction services.
52. Remove abandoned homes Draw - taking into account the payment to the seller - at leastdiscover what it costs and what options you should get rid of the abandoned houses.
53. If you buy the park has units for lease or rental units his company, every effort to check them out. You will see not only how the unit will be for the care of residents, there are also a reference to how the current owner has carried on. If you find any holes or weaknesses in the floor or walls, carpeting Bad jobs and the like, this could be an indication that the owner is not onlyThis quick update on the property, but also in the park and maintenance.
The more thorough you are in the due diligence phase, the better the property is included and potential problems that occur in particular to the property. Moreover, it is more convenient to support the acquisition of goods and plumbing more likely, electricians and other contractors on board to help in the future.
In your due diligence, there are some things you justChange can not be easy, and the risk is too high to continue. Other things may be too expensive. Other areas of due diligence can discover small problems that you should be able to do some 'proper management and operations and can quickly lead to changes that an increase in capital.
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