Purchasing Vacant Pads from a Park Owner

[Dustin M.]

Hi,

In one of the parks I'm doing Lonnie Deals, the park is at 40% vacancy.

I'm thinking of asking the park owner if he wants to owner finance empty pads in his park. I would be responsible for finding a home to put on the pad and once this is done the lot rent would go to me for the spot (I would likely do a Lonnie Deal on the pad so I would get two income streams here).

Anyone have any advice going into something like this? I was thinking of asking him if I could purchase one empty pad at a time and after a home is put onto it have him owner finance another empty pad to me until he is out of pads that are empty. Hopefully by the time I had all the empty spots filled I would have enough cash saved up to purchase the mobile home park from him.

Lot rent in the park is $250. I was thinking of asking him to owner finance 10K per pad with no money down at 5% with payments around 150 a month for six and a half years.

My other concern is factoring in how much I should pay in monthly expenses to keep the park running. If I do end up purchasing pads in the park I don't want the current owner to take advantage of me. I thought it would be fair to pay a percentage of the total spots I owned even if I haven't moved a home onto the pad yet. So if I owned 2% of the total pads in the park I would be responsible for 2% of the monthly bills for the park.

What do you guys think of my plan?

Dustin