Frequently Asked Question
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When do you contact park residents? Only after we have a signed contract with the owner of the park.
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How much do you pay? Fair market value, based on its continued use as a mobile home park. We use a revenue model to determine the value of each economically occupied lot. Other assets (such as rented apartments) are evaluated on a case-by-case basis.
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Are you limited to Manufactured Housing? Yes. At the moment, all acquisitions must be at least 75% manufactured housing units.
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Once purchased who actually owns it? A newly-formed nonprofit corporation owned by a majority of the residents of the park. Each household applies for — and purchase — a membership. Non-member households stay in the park and rent from the corporation.
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How fast is the process? Ninety to 120 days, depending on deal complexity. Like all commercial transactions, timelines are subject to the ability to expedite due diligence.
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Where does the money come from? ROC USA Capital. We finance over 100% of FMV to accommodate closing costs and future infrastructure improvements.
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How can residents with no business experience be successful? As a condition of the financing, residents must agree to a minimum 10-year operations support and training relationship with ROC Northwest.
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How do I sell to my residents? Contact us at victoria@nwcdc.coop. We work with brokers, attorneys or directly with owners, depending on your preference.
Our Process
- Negotiate Price Using a revenue-based valuation, we are able to negotiate a price that works for both the Seller and the Residents.
- Sign Purchase And Sale Agreement After settling on a price, we execute an assignable, commercial Purchase and Sale agreement between the Seller and the Northwest Cooperative Development Center of which ROC Northwest is a program.
- Offer PSA To Residents With PSA in hand, we call a meeting of the residents where they discuss the purchase, consider the costs and benefits, form a legal corporation, and ultimately decide whether to take assignment of the PSA.
- Due Diligence And Financing The ROC Northwest team works with the new corporation to ensure a clear title, appraise the property, conduct a property condition report, and secure funding commitments.
- Close Residents approve financing, sign closing documents, and have the organizational structures in place to hit the ground running on day one after closing.