Aug 12, 2023
In this episode of The MHP Broker’s Tips and Tricks Closing Cocktail podcast, Maxwell Baker, president of The Mobile Home Park Broker, interviewed rockstar broker Paul Schaaf about his experience selling Muldraugh, a mobile home park in Kentucky.
This and every Tips and Tricks podcast episode 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. Ask Max for details.
Here Are the Show Highlights:
- Leading company broker Paul Schaaf was interviewed by Max on his recent transaction selling Muldraugh MHP in Kentucky. (Max, 0:22)
- This was a park that had been owned and operated by the sellers for around 30 years. The couple wanted to retire, and asked Paul to help them exit the property properly. Paul helped them prepare the park for an optimal transaction by getting their books and financial records in order and boosting rents to market value to make the revenue more appealing to investors. As a result of all of this upfront attention and diligence, they got a few offers almost immediately. They quickly found a buyer and closed in the 28th day of a 30-day close. (Paul, 1:25)
- The seller extended some lending to expedite the deal, but under very good terms for both parties. The community consisted of mostly park-owned homes, in addition to a eight-plex dwelling. In all, it was a very attractive package of housing inventory, with rents that supported the shell value of the homes. (Paul, 2:49)
- Paul helped establish the value of the homes and the eight-plex. The approximately 37 homes had their value set individually, for about $34,000 apiece. This was a very good price for POHs in this market. Paul also showcased the maintenance and upkeep performed, and the low turnover rate on each home. They were further able to show that when a unit did become available, it was filled in as little as a week or two--a very positive finding. (Paul, 3:32)
- The valuation of the eight-plex unit was set by taking into consideration all of the rents and the expenses on it. (Paul, 4:34)
- The buyers were experienced investors, having owned parks in several other states. The area appealed to them due to the thriving local economy, with jobs associated with a new Ford billion-dollar auto battery plant and a $1.7 billion core plate steel mill. These and other employers made it a strong area for economic development, with workers who’d need abundant affordable housing. (Paul, 4:47)
When it comes time to sell your mobile home community in Kentucky or elsewhere, let The Mobile Home Park Broker go to work for you, with our innovative Community Price Maximizer platform to optimize your park value. Just drop Max Baker a line at info@themhpbroker.com or give him a call at (678) 932-0200. Work for Max, or ask for Paul.
Power Quotes in This Episode:
“It was just a great relationship established between us and the owner, and they trusted us to get the job done and we were very successful. We actually rolled this out to the market and immediately had a few offers.” (Paul, 1:25)
“So, it was a big home value. But it helped having all the titles together, you know, (and) good pictures of each unit.” (Paul, 3:32)
“We're here to make sure everyone is satisfied at the end of the day, and looking forward to more opportunities coming up here in the rest of the year.” (Paul, 5:48)