Valuing additional lots

[Jacob Calbillo]

How do you value a small MHP that currently has 15 lots but was approved by the city to expand by another 20 lots? The current owner has received approval hasnt starting to built out the lot space and the utilities have not yet been added so that would obviously be a major expense. How do you factor those into the valuation?

[Jerry Lucker]

Jacob,

Valuation to buy should be based on current income and expenses. Anything else is speculation/blue sky and prone for problems.