RV Park - Contract & Due diligence advice!!

[Lucien Gautreau]

Hi BP!

I am currently about to sign a contract after negotiating a deal on a RV Park. (40 Pads)

After reviewing the contact, I saw that the Earnest Money is $10,000 for a close to 300K purchase. Just seems a high in my opinion, is this because it's commercial contract? I always want to take into account the Earnest is not always 100% guaranteed back even if cancelling during due diligence. And it's my first RV park and I just want to be sure. 

Also, I am doing a seller financing contract. Which I am excited about and never done before. 
However, I am wondering opinions on "Typical or at least Good term examples on a 300K RV park. 

My offer for Owner Carry/Seller Financing: 
300K 
5.75% Int. Rate 
30yr Amortized (10 Yr Ballon payment)
15% Down (He won't seem to take less, I offered 10% at a higher price and the agent said the seller will be paying 10% in fees and all of that down will be going towards that and he needs money.) Never heard of 10% commission?? Is that normal? Does anyone see that in any states? Seems high comp. to 4-6% Im used to seeing and negotiating in residential even in commercial real estate. 

Any thoughts or advice before I sign the contract?? 

Anything I should be concerned about? 
Does this look like a good deal on the seller financing?

First time doing an RV Park and seller financing.

Thanks! Any help is appreciated!!

[Lance Lvovsky]

@Lucien Gautreau

From a tax perspective, you want to consider purchase price allocations. For an rv park, you want to maximize allocations to campgrounds/land improvements for depreciation purposes, along with other tangible property. Consult with a CPA.