Page 4 of 5
This is another passive income stream selling option. This effectively delays the sale of your park. The buyer of the park becomes responsible for income and all of the expenses related to the park. This includes capital improvements. You receive a check every month from the buyer. You might consider this option if you do not want the capital gains hit. If your park is in need some work so it can be financed for a sale, we have the skill sets to preform the work, manage the community and exercise the option at a future time. We have also seen this used for estate planning purposes by placing the park into a trust for the benefit of the owner and then eventually the owner’s kids and grand-kids. These leases can be short term or very long term depending on the needs of the owner. Lease amounts can be adjusted periodically by tying the lease bumps to an economic indicator contained in the closest large metropolitan area. This might sound complex, but once in place these lease options can be a real 'win – win' for both the seller and buyer of the park. The downside to the owner is they continue to have ownership of the park so a relationship of trust must be built between the owner and lessee/buyer. The upside is this option is the best if the park has vacant spaces to be filled or other deferred maintenance issues. This option frees up our cash to infuse into the park, ultimately bringing the park to a standard the banks will finance the purchase. If you like the thought of continued income every month without the management duties this is a great option.
