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This basically means the buyer brings cash to the closing and the seller walks away from the closing with a cashier’s check or performs a 1031 exchange. The upside to the seller is they have cash in hand. The downside is there are tax implications including capital gains and recapture tax. This option tends to bring the lowest cash purchase price for a park. The terms for a cash sale are limited to conventional financing or the buyer having cash on hand to purchase the property. If your park is valued at under 1 million dollars or if the income is derived from park owned rental units this will be the most difficult option for a purchaser. Financing institutions have become gun shy to lending on parks with park owned rentals, leading to much higher interest rates or requiring the mobile homes titles to be purged before the sale. These realities do not work in the favor of the buyer or the seller. Creativity on the terms side of the sale is paramount if your community is smaller or a rental park.
