In this episode of The MHP Broker’s Tips and Tricks Closing Cocktails podcast, Maxwell Baker, president of The Mobile Home Park Broker, interviewed The MHP Broker’s Paul Schaaf regarding his recent sale of a storage facility, mobile home park and RV community in Parkersburg, West Virginia.

As with every Tips and Tricks podcast episode, this one is brought to you by The MHP Broker's proprietary Community Price Maximizer. Use this four-step system to get the highest price possible for your mobile home park or RV community when you sell it through The MHP Broker. Guaranteed. Call Max for details.

Here Are the Show Highlights:

• Max introduced broker Paul Schaaf to discuss his sale of Gihon Self Storage Facility and RV Park in Parkersburg, West Virginia. (00:22)
• The owner had acquired the park as part of a bankruptcy settlement, so his heart wasn’t really in it. He was running it from out of state. It had three verticals: a mobile home park, RV community and self-storage facility. He had a good on-site manager taking care of the day-to-daay, but contacted Paul because he was getting unsolicited offers. The self-storage vertical was running pretty well, with 150 units and about 75 percent occupancy. The mobile home vertical was a mess, though. A lot of houses in poor shape that had to be taken out. The offers were generally just for the self-storage business, but the owner wanted to sell everything as a single unit. They put together a nice marketing package and had multiple offers. The seller had a nice financing program, which helped attract qualified buyers. (Paul, 1:12)
• The owners offered self financing on a portion of the loan at about five percent with a three-year balloon payment. (Paul, 3:15)
• The deal went well, even though the buyer was taking on the mobile home vertical that needed a lot of work. The deal closed in about 45 days. (Paul, 3:49)
• The buyer was someone Paul had worked with in the past. They had money from family and friends, and had invested in commercial properties before. They were just getting into buying mobile home parks, and had a few properties. Having worked with him before, Paul trusted that they could close without major issues, and that’s what happened. (Paul, 4:05)
• Paul’s takeaway was that sellers must be patient, especially if they have properties that are challenging to sell. This one, for instance, had problem houses that had to be removed and replaced. But when you have good buyers and sellers, as he did here, the deal can go quickly and smoothly and be a pleasure to work. (Paul, 4:49)

Bring us your most challenging deals. At The Mobile Home Broker, we have years of experience selling mobile home parks, RV communities and all of the other verticals that might be part of the transaction. Call Paul Schaaf or Max Baker at The MHP Broker, (678) 932-0200. Op drop ‘em a line at info@themhpbroker.com.

Power Quotes in This Episode:

“We are good at those deals in the secondary, tertiary markets. Don't get me wrong. We do big deals. I mean, we just closed a nice $9 million deal recently, and have done upwards toward the multi-million dollar deals as well, up in the 30s. So, we do a lot of deals. We do all types.” (Max, 5:23)

In this episode of The MHP Broker’s Tips and Tricks Closing Cocktails podcast, Maxwell Baker, president of The Mobile Home Park Broker, interviewed The MHP Broker Jeff Dodge regarding his recent sale of a beautiful two-park portfolio.

As with every Tips and Tricks podcast episode, this one is brought to you by The MHP Broker's proprietary Community Price Maximizer. Use this four-step system to get the highest price possible for your mobile home park or RV community when you sell it through The MHP Broker. Guaranteed. Call Max for details.

Here Are the Show Highlights:

• Max explained how he and broker Jeff Dodge worked together on the sale of a two-park portfolio, with Jeff doing the majority of the work. (Max, 00:22)
• The park seller had been in the business for a long time, having bought and sold many parks. These two parks were big and beautiful. Together, Eagle Trace and Edgewood consisted of 116 park-owned homes, 11 tenant-owned homes and nine vacant lots. The parks were very well maintained and the homes were new or impressively renovated. Everything was direct billed, making it more of a turnkey operation for the buyer. There was also an opportunity for value-add rent increases. (Jeff, 1:23)
• There were also park-dedicated roads throughout both properties. And the parks carried an asking price of a CAP rate that was above 6. (Max, 2:31)
• Rents averaged at about $100 under market value, a major selling point for fairly immediate increased revenue generation. (Jeff, 3:39)
• One major challenge Jeff foresaw was the presence of all of the park-owned homes–116 of them in total. This can sometimes be a sale obstacle if prospective owners don’t want the cost and responsibility of having to maintain homes they own. Despite all the park-owned homes, the portfolio received multiple offers. (Jeff, 3:58)
• They ended up in negotiations with three serious buyers. (Jeff, 4:24)
• The park owner also had an office building that he wasn’t going to include in the deal. Max convinced him to keep that in his pocket as a possible bargaining chip. Sure enough, they were able to add the building to the deal and pull down an additional quarter-million dollars. This was a tactic Max had learned in the process of selling some 500 mobile home parks over time. (Max, 4:30)
• The story has a happy ending. Buyer and seller were both happy with the transaction. (Jeff, 5:53)

The Mobile Home Broker has years of experience selling mobile home parks, and the brokers know tricks of the trade that can help you get maximum price on your park. Call Jeff Dodge or Max Baker at The MHP Broker, (678) 932-0200. Op drop ‘em a line at info@themhpbroker.com.

Power Quotes in This Episode:

“So, you know, you're worried about the financing aspect and finding that right buyer that's willing to take on 116 park-owned homes. But, you know, ultimately, we received multiple offers.” (Jeff, 3:58)

“I want to say I’ve probably sold well over 500 mobile home parks in my career.” (Max, 4:30)

“...issues can come up at any time up until closing, but it seems like we always find a good resolution. Yeah, we got it to the finish line. Both parties were happy with the outcome.” (Jeff, 5:53)

“I've moved the ugliest thing on the street to the most beautiful park, like this one. We do all sorts of stuff.” (Max, 6:14)