Hi All,
Wanted to get your thoughts on this before I acquired any more details.
A coworker put an offer in front of me. Gave some basic details to think about and can get more if needed. A short back ground, he pretty much acquired a camp ground 1.5 years ago by way of his father being ready to retire and no one else in the family being interested. From his side, he doesnt really want to deal with it or be tied to the location. (Hes commuting 2.5 hours a day and managing this place and working a full time job)
Currently it produces 165,000$ a year from 28 camper slots (Renter pays their own power) and 2 cabins. Currently 100% leased, most long term. (Pretty riverside location in countryside).
Hes willing to owner finance at the following terms:
Owner financed:
2,000,000$ Purchase price
0$ down
3.5% interest
30 year
I think at the end of the day, he wants stable headache free money and to spend time with his family for the next 30 years more than he wants to be a business owner / landlord. As with anything, the business and real estate would be the security that is re possessed if the mortgage is defaulted on.
Im sure some expenses have been left out. But in general, would you guys follow up on this and get more information like profit and loss and tax documents on this operation?
Cash on Cash is strange to calculate with 0% down....
Share your thought!