All Forum Posts by: Ryan Groene

Yes you base it off off the NOI to

Come up with the valuation. Just like multi family. 

Seems like they labeled a capital expense as a utilitiy bill. Or you could just ask them what it is. And just say am I missing something?

While running private water and sewer that is correct you don't receive a bill from anywhere.  what they could call utilities could be electric, gas, propane, trash...any of those items.

well will have an electric expense, and the upkeep of adding chemicals, testing the water and different reports to the state

not a deal killer by any means.  Please get your septics tanks inspected by a reliable company other than what the seller uses.

Some counties and cities have different requirements for what is needed to operate a system on a permit for septic.  some states/counties/cities don't require this if the tank's aren't bigger than a certain amount(lets say 3000 gallons) anything smaller than that you don't need a permit.  check the code and he should know that at the very least.

Take the number of lots, and the amont that they are being charged each month.  that will give you your gross revenue for this park has capacity for.  if any different, just ask the seller

 im not sure where you seeing this, but as a full time owner/operator....true 10-15% cap rates are hard to come by now a days as the market is filled with people getting into it and owners that are creating there own brokerage firm by calling every letter they ever received. 

Where are you seeing this? 

There is plenty of free material and material that you can pay for. General rules of thumb exists In the business. Like if it’s city water and sewer your going to be In the 30%-40% expense ratio. Depending on whether you or tenant pays for water or sewer. And this assumption only holds true if you have a park greater than or around 25 lots and lot rents aren’t below $225 or so

If private utilities or mixture of city water/sewer your expenses are going to be 40-50% range. 

Also there a lot more factors that go into underwriting a deal. Like debt, location, age of homes, infrastructure, density, POHs vs TOHs.  How many filled lots. How many vacant. 

Any questions please reach out 

Really depends on where it’s located?

Water/sewer. What are they

How many units are there?  how many occupied? utiliteis? who pays what?

Reach  out of you need help.