Mar 25, 2022
In this brief Closing Cocktails episode of The MHP Broker’s Tips and Tricks, Max discussed with MHP broker Eric Wanck the inside story on two recent deals Eric handled: PA 37-Pad Mobile Home Park, and GA 34-Pad Mobile Home Park. As always, this episode is hosted by Maxwell Baker, the co-founder of The MHP Broker, and brought to you by our proprietary Community Price Maximizer. Use our four-step system through which we’ll help you navigate, and guarantee you a higher price when you sell your mobile home park or RV community.
Here Are Show Highlights:
- Eric actually found a buyer and got the park under contract even before Lillibridge was even listed. (Max, 1:24)
- Eric was talking with a PA investor he’d worked with before, and he felt that PA 37-Pad Mobile Home Park, which was still a week or two away from being listed, would be an ideal fit. (Eric, 1:35)
- The park sold for very close to the asking price, within around $10,000. (Eric, 2:37)
- PA 37-Pad Mobile Home Park is a very clean park, probably the nicest park in that small town. Paved roads, city water and sewer, mostly tenant-owned homes. (Eric, 2:47)
- It helped that they were able to get a PA banker who had worked with and understood the asset class, which is relatively rare. (Eric, 3:14)
- The one snag was that the appraiser completely ignored the five or six park-owned homes on the site, so the appraisal came in lower than expected, But Eric was able to work it out with the buyer and seller, to everyone’s satisfaction. (Eric, 3:14)
- The 37-pad park sold at an 8.9 CAP rate. (Max, 4:13)
- GA 34-Pad Mobile Home Park was also brokered by Eric. It was an off-market deal with a lot of value-add upside. (Max, 5:23)
- Eric had been in contact with ownership for a year and a half, looking for a sale. Finally, the owner was ready. The property was in challenging condition, but Eric had a buyer lined up who saw the potential. (5:41)
- It was a strong all-cash buyer, a definite advantage to the seller. (Eric, 6:45)
- GA 34-Pad Mobile Home Park has city water and a septic system with no issues in due diligence. (Eric, 7:20)
- The park has 34 pads and went for a CAP rate of 8.8.
Two very different deals in two states, and two satisfied sets of buyers and sellers. Let us help you sell your park. Just drop us a line at info@themhpbroker.com or give me a call at 678-932-0200.
Power Quotes on These Episodes:
"(PA 37-Pad Mobile Home Park) just happened to be a great offer, one that the seller obviously agreed to.
And we were able to put it in under contract before we took this to market. (Eric, 1:35)
“Very nice, clean community, even though it was a smaller town, certainly one of
the nicest parks, if not the nicest park in town. Paved roads, majority tenant-
owned homes, city water and sewer.” (Eric, 2:47)
“We had a…Pennsylvania lender, very familiar with this asset class, and that always
helps tremendously.” (Eric, 3:14)
“So (GA 34-Pad Mobile Home Park) is one of these parks that you might want to take someone with you
when you go through it for the first time. But you know, just a lot of value add, though.
And that's what a lot of folks are looking for these days.” (Eric, 5:41)
“(Cash is) what sellers are looking for. ‘If you’ve got a strong cash buyer, bring them to
me and we can talk.’” (Eric, 6:45)