HOW WE UNDERWRITE
The technical questions, answered before you ask.
So the conversation can be about you and the property, here is how we run the numbers on every deal we look at.
All-cash basis first.
We price every deal as if we were paying cash. Assumable debt can make a deal better; it never sets the price. If the deal only works because of the financing, it does not work.
A real expense load.
Our numbers carry 7 to 8 percent for project management, a third-party property manager plus asset management, reserves, and taxes as they will read after the sale. Some states re-assess on transfer; we underwrite the new bill, not the old one.
Price per occupied site, against the market.
We look at price per occupied site or unit next to market comps, then at in-place income under our expense load. That is the deal as it stands today. What our capital and work create afterward is the stabilized case, and we keep the two separate.
The gates are named up front.
Sewer scope, pad sizes, utility systems: the things that decide whether a plan is real. We put them on the table in the first conversation.
Then the human side.
Seller motivation drives structure. Taxes, timing, a manager who wants to retire, a family that disagrees: each one points to a different deal. Better benefits, not just price.
WHEN A DEAL MOVES · THE DILIGENCE
Under contract, the real work starts. Sellers get our request list up front, so nobody is surprised in week six. On a land-lease community it looks like this:
Vouched one hundred percent: every name on the roll matched to the lease in the file, every occupied site walked.
A full day with the onsite manager, no topics off limits, and the park walked on foot. The little things a drive-through misses are usually the expensive ones.
Three years of operating statements, utility bills, and tax bills, plus cap-ex history. First-year budget built three ways: best, expected, worst.
Property condition, appraisal, utility line study, soils, Phase I environmental, boundary survey, title. All from independent firms.
Where homes carry notes: the note files, payment histories, titles, and SAFE Act compliance, underwritten like the loans they are.
Test us on a real deal.
Send the numbers you have. We will tell you what we see, and where we would want to look closer.