Anyone ever done a dockominium deal?

Real Estate Investing Marina
1

I have an opportunity to purchase a marina on Lake Norman in the Charlotte, NC Metro area. The sellers were already preparing to covert to a structure similar to a dockominium, which they are doing a lot of at marinas in Florida and South Carolina.

Purchase price: $4,500,000
Net Cash Flow: $368,000

By selling lease hold interest in most of the boat slips, will generate $4,500,000 in cash. That gives me enough cash to purchase the marina, $1,500,000 in my pocket and another $100,000 yearly in cash flow from ancillary income.

Want to know if anyone has had experience in dockominiums that they can share so I know I’m checking the right things.

Thanks.

2

I have no experience with it personally but did watch someone go broke trying to do this once. For them it could have been timing as they began the conversion just as the recession hit.