When you put a mobile home park under contract you will definitely want to have a stipulation in the contract that will allow you confirm what the seller has said so far as well as evaluate the overall feasibility of the purchase. Due Diligence will look at the physical, economic, demographic and market feasibility of the project. This time period is usually between 30 and 60 days. In conducting your due diligence you are looking to identify anything that poses a potential issue and that you are able to change or fix. These usually deal with the cleanliness of the park (junk & trash piled up), mismanagement, lack of rule enforcement, collections, expenses that can be reduced.
But more importantly you are looking for those problems that you may not be able to fix or that will be very expensive to fix. These types of issues usually deal with the size of the lots, reputation, problems in local market, flood plains, drainage problems, bad configuration 안전공원 of lots, water, sewer, electric, and gas line problems.
In conducting your due diligence you may call on experts in surveying, accounting, marketing, financing, plumbing, electrical, and legal.
Ask the Seller to provide you with the following (if applicable):
1. City, County and State Permits and Licenses
2. Sewer Plant Records and Readings
3. Water Well Tests and Compliance Records
4. Existing Surveys or Environmental Reports
5. Water and other Utility Meter Reading Records and Formulas
6. Property tax bills for the last 2-3 years
7. Copy of current insurance policy and binder showing premiums and coverages
8. Current staffing list including position, wages, job descriptions
9. Any drawings and maps of the park and infrastructure and size of lots
10. Any Contracts that will be transferred to buyer at closing (laundry, trash, phone)
11. Signed Rules and Leases for each resident
12. Bank Statements
13. 2-3 years Tax Returns
14. 2-3 years Profit and Loss
15. Certificates of Occupancy
16. List of Capital Expenditures for the last 3 years
17. Listing of any current park infrastructure problems(water, sewer, gas, electric)
18. Rent Roll with specific homesite number, name of resident, move-in date, monthly rent, current balance, additional charges, number of occupants, and a brief history of the resident (good resident / bad resident, special circumstances, etc)