Did you buy park at an Auction? or do you know any body?

[Andriy Boychuk]

Hi. I just received a listing 40 lots MHP on public utilities in great area. However, they will not allow to do Phase I inspection and they have reserve price.

Just curious about the following:

1. Can they set the reserve price higher than the market value?
2. How hard is to finance the property from Auction?
3. How can you do or request on site DD?

I don’t know how you buy without appraisal or environmental contingency? Thoughts?

[Bill F.]

@Andriy Boychuk the only people I personally know of who have bought parks at auction were a large fund and even then I think it was a NPN auction and they picked up a portfolio loan that had a few parks.

1. I have no idea, but I don't see why not. Caveat Emptor

2. Buying at auction isn't your problem, finding a bank that will loan without a Phase I is the problem. Check the rules of the auction and see ow long you have to settle up once you win. 

The only way I can see to buy an asset without the usual DD items is if you know its a deal even under the worst case scenario or its part of a portfolio and you have to take the good with the bad. 

Could you go do your own DD before the auction? Talk to residence and the manager, call the city and find out about the park. If its city water/sewer the only utility risk is who owns the pipes.