You Have More Ways to Sell Than "Cash, Take It or Leave It"

Why Structure Matters at Sale

Banks lend on parks that look like clean machines. When a park has a glitch, like a septic system near capacity, an electrical upgrade pending, or books that are still being cleaned up, a bank may lend less, require a big repair holdback, or say no. That shrinks your pool of buyers and pushes price down.

Seller financing can fill that gap. It can also:

• Widen the pool of serious buyers.
• Support a higher price, because you are providing terms.
• Give you monthly income instead of a single lump sum.
• Change the timing of when you recognize gain for taxes, in some situations. That is a question for your CPA, not for us.

It also comes with real risk: you become the lender. If the buyer stops paying, you need documents that protect you.

The Three Basic Paths

Cash

The buyer pays the full price at closing, from their own money or a bank loan. You walk away clean. Simple, but the buyer pool may be smaller, and some buyers will ask for a lower price in exchange for speed and certainty.

Hybrid

The buyer brings cash and/or a bank loan for part of the price, and you carry a note for the rest. You get a meaningful check at closing and monthly payments after. Your note may be second in line behind the bank, which carries more risk, so terms matter.

Full seller carry

The buyer makes a down payment and you finance the rest. You get monthly income for years, often with a final balloon payment. This can work well if the buyer is qualified and the documents are strong. You keep a secured interest in the park until you are paid.

What to Check, Decide, and Document

1. Know your own number first

Before talking terms, sit down with your CPA and figure out what you need to net, and how cash vs. carry might affect your taxes. Two owners with similar parks can get very different answers depending on their history.

2. Check your existing loan

If you have a mortgage, find out whether it has a due-on-sale clause and whether there is a prepayment penalty. That affects which structures are possible.

3. Screen the buyer like a banker

If you will carry, ask for proof of funds, a track record, and a plan for the park. You are lending them money. Act like it.

4. Put terms on paper with counsel

Typical points to discuss (illustrative, not a recommendation): down payment, interest rate, payment schedule, term, balloon date, whether your note is first or second in line, what counts as default and what happens then, insurance requirements, and reporting the buyer must give you.

5. Set a firm due diligence clock

Many owner-direct deals use a defined diligence window, often in the range of 30 to 45 days, with earnest money that becomes non-refundable after a set point. Your attorney sets the specifics. A clock protects you from buyers who use your park as a free option.

6. Use a commercial escrow and title company

Pick one that closes income properties. Tell them early how rents will be prorated, how deposits will transfer, when utility final readings happen, what personal property is included, and whether any repair holdback applies. Verify wire instructions by phone using a number you already know.

7. Disclose your known glitches in writing

If you already know about a septic or electrical issue, disclose it and attach your evidence and bids. A known issue becomes a defined holdback or price adjustment. A hidden one becomes a dispute.

Get-Ready-for-Sale Checklist

• CPA conversation about net proceeds under cash vs. carry
• Real estate attorney engaged
• Existing loan reviewed for due-on-sale and prepayment terms
• Your preferred structure and minimum terms written down
• Buyer proof-of-funds and background requirements set
• Commercial escrow and title company chosen
• Rent roll, deposit ledger, and prepaid reservations ready for proration
• Personal property list prepared
• Known issues disclosed with photos and bids
• Diligence timeline and deposit terms agreed in writing
• Wire instructions verified by phone through a known number

Common Mistakes

• Choosing all cash by default without asking your CPA what you will actually keep.
• Carrying on a handshake. If you are the bank, you need bank-grade documents.
• Ignoring your own loan's due-on-sale clause.
• Accepting a tiny refundable deposit and an open-ended diligence period.
• Forgetting deposits at closing. Tenants will call you if their deposits did not transfer.
• Taking tax advice from a buyer, a broker, or a website. That includes this one.

An Example