May 14, 2022
In this brief Closing Cocktail episode of The MHP Broker’s Tips and Tricks, we chatted with MHP broker Paul Schaaf and what he did to close on SC 77-Pad Mobile Home Park, a sweet park in South Carolina.
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:
- Paul recently closed on SC 77-Pad Mobile Home Park, a nice little “value-add” mobile home park in growing Hartsville, South Carolina before it even hit the market. (Max, 0:22)
- The owner had been in possession of the park for 20 years, She was reluctant to sell, but she knew it was time. (Paul, 1:23)
- A prime selling point was that there were all public utilities, and all billed back to the tenants. It was also in an Opportunity Zone, a major tax advantage. (Paul, 1:23)
- The value-add was due to the fact that the current owner was only operating at about one-third of pad capacity. A new owner could end up with a total of some 80 pads. (Paul, 1:23)
- The owner needed help with her Section Eight and tax situation. (Paul, 1:23)
- That’s always a challenge in high-tax South Carolina. (Max, 2:31)
- Paul was able to help both buyer and seller successfully navigate the multiple tax challenges to the point where the seller was happy and Paul thinks the new owner will list the park with MHP when the time comes to sell.
Despite its rather tricky tax situation, SC 77-Pad Mobile Home Park was a successful close. 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 This Episode:
“It was definitely a fun business transaction.” (Paul, 1:23)
“The owner was just a delight to work with.” (Paul, 1:23)
“We were able to get a very good price for this deal for the seller. The buyer had to navigate the tax variables. They're going to increase occupancy and I'm assuming they'll probably end up letting us list it for them exclusively on the back end, because it helped him out with the taxes.” (Max, 2:44)