In this episode of The MHP Broker’s  Tips and Tricks podcast Closing Cocktail, Maxwell Baker, president of The Mobile Home Park Broker, interviewed company broker Eric Wanck on his “drama-filled” close on a park in Alabama.

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:

• Beautiful Carriage Mobile Home Park in Alabama brought The Mobile Home Park Broker Eric Wanck plenty of drama, but it was ultimately another successful close. (Max, 00:22)
• The drama came from both sides of the deal, reminding Max of the Mexican soap operas he used to watch as a kid. (Max, 1:19)
• The sellers first approached Eric two years ago when they wanted to get a valuation of the park and find out how to boost its value. Eric was acting as a consultant, another service The MHP Broker offers. Eric noted that the housing inventory was mostly park-owned, and that’s a hassle to a lot of buyers who would rather not be responsible for maintenance. Eric recommended that the park owner sell a lot of their home inventory on a rent-to-own (RTO) basis. By the time the park sellers came back to see Eric two years later they’d taken his advice and now about 70 percent of the homes were sold off or still had rent-to-own notes on them. This would make for a cleaner, easier transaction, in Eric’s opinion. (Eric, 1:53)
• The notes remaining were for short-term deals, generally three years. The residents were paying them off at different stages, which made it difficult to value the park deal based on the number of notes outstanding and their varying balances. (Eric, 3:18)
• Eric’s approach, in selling the park, was to be totally transparent about the RTO notes and their value. It wasn’t easy, but Eric was able to come up with a fair price for the park and what would remain of the existing notes. One potential crisis averted. (Eric, 5:40)
• The drama on the buyer side of the transaction came about when their financing fell through. The buyer had chosen the lender, but had still not closed with them after 45 days. It turns out that the lender was presenting terms that were unsuitable to the transaction. Eric responded by connecting the buyer with a lender he’s worked with, and the buyer also came up with another lender. After comparing rates and terms, the buyer went with his second-choice lender. All of this took valuable time, of course. (Eric, 7:11)
• The deal closed, but the confusion with the lender gave it about a 30-day delay. (Eric, 8:03)
• As a seller, it’s critical that you have all of your due diligence records lined up and ready. This will save time, and that means a quicker sale with fewer hurdles. (Max, 9:56)

Your time is always valuable, whether you’re the seller or the buyer of a community. At The MHP Broker, we have experience closing deals as quickly as possible. Call Eric Wanck or Max Baker at The MHP Broker, (678) 932-0200. Or drop us a line at [email protected].

Power Quotes in This Episode:

“There’s a lot of variables, and financing can be tricky. (Eric, 8:03)

“We’re here to help you out, kind of quarterback…your journey to sell your community and try to look out for the pitfalls.” (Max, 9:56)

“Time is money, and time kills deals.” (Regarding delays in closing) )Max, 9:56)

“So if you’re a seller, try to get your stuff (for due diligence) in order. That doesn’t mean don’t talk to us, so give us a call. We’re happy to chat with you about the standard due diligence list items that you’ll  need when you put your deal on a contract.” (Max, 11:11)