The Mobile Home Park Broker's Tips & Tricks To Investing

In this episode of The MHP Broker’s Tips and Tricks podcast, Maxwell Baker, president of The Mobile Home Park Broker, interviewed The MHP Broker Eric Wanck regarding his sale of Five Points Mobile Home Park, and the challenges that wereinvolved.

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:

• Super broker Eric Wanck recently sold Five Points Mobile Home Park, though not without a little drama. (Max, 0:22)
• From the outside looking in, it was a great park. Five Points is in a favorable metro, it has a good, solid resident base, all tenant-owned homes, with direct-billed city water and sewer. Everything investors are looking for. (Eric, 1:28)
• On top of all other buyer advantages, the park was priced at an almost 11% CAP. (Eric, 1:56)
• The reason for the high CAP is that the tenant-owned homes were all pretty old and run down, from the late 1970s and early 80s. (Eric, 2:10)
• Max remembers being highly unimpressed with the homes as he rode through the park, inspecting it and taking pictures. He knew then it would be a hard sale. (Max, 2:28)
• The seller had approached Eric probably about a year before the sale, and asked him to evaluate the property. Eric appraised it and recommended that the owner spend a little money on improvements. The seller did so, and Eric was ultimately able to get about $800,000 more for the property than he had originally thought it would sell for. (Eric, 2:44)
• They got a lot of interest in the park, and the high bidder was a man who owned real estate, but had never owned a mobile home park. He already had a lender in place, but the lender got nervous. It made so many unrealistic demands that it looked like they didn’t really want to fund the deal. (Eric, 5:36)
• One and a half weeks before the proposed close date, the lender pulled out of the deal. Fortunately, the buyer was already in backup communication with another lender who came into the deal. They were able to complete the sale in 30 days with the new lender, and that included a new appraisal. (Eric, 6:36)
• The prospective buyer was a little gun shy with the appraisal, based on what he’d already been through with a lender, and the general aesthetics of the park with the old homes, so he did something Eric had never seen before. Even though he wasn’t the owner yet, he paid about $10,000 out of his own pocket to improve the look of the park. The strategy worked. The appraisal went through without a hitch, and the park was sold. Proof that even a drama-filled transaction can be successfully overcome with experienced mobile home park brokers. (Eric, 7:33)

We can’t guarantee a total lack of drama, but we do guarantee a park sale at the highest possible price. That’s the bottom line. Call Eric Wanck or Max Baker at The Mobile Home Park Broker, (678) 932-0200. You can also drop us a line at [email protected].

Power Quotes in This Episode:

“It’s not a deal without drama, bro.” (Max, 3:38)

“Every Tuesday, we talk about all the deals that we're working on. We talk about all the drama that everybody's coming across. We are a giant think tank for you, the seller and the buyer. So that's why you pay us.” (Max, 4:21)

“It just goes to show that you always run into something with these transactions…great cash flowing park definitely had its rough edges, but I think at the end of the day he's going to be very happy here, in the long run, with the asset that he purchased.” (Eric, 7:33)

In this episode of The MHP Broker’s Tips and Tricks podcast, Maxwell Baker, president of The Mobile Home Park Broker, interviewed broker Paul Schaaf regarding his successful close of Pine Meadows RV Park. 

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:

• Pine Meadows was a very fun deal for Paul. The owners had bought a decrepit mobile home park, ripped out everything and transformed it into an RV park running on natural gas and high grade infrastructure. (Paul, 1:30)
• When they sold, their buyers financed the deal through a national lender that the buyer had successfully dealt with before. Paul and The MHP Broker helped by providing data that showed impressive rent growth over the last three to six months at the park. (Paul, 2:31)
• The only real challenge to the sale was the sellers listening to a friend who brought in a prospective buyer. But Paul’s buyer offered more money and better terms, and was better vetted by Paul. As a result of listening to Paul and accepting his buyer, the seller put some $100,000 more in their pockets than they would have if they’d considered their friend’s buyer. (Paul, 4:10)
• That other offer came through an old buddy of the seller. His buyer wanted 120 days for due diligence and was only offering a scant $1,000 in earnest money. Paul, along with his team partner Ryan Ramseur, convinced the owners about what a bad deal that would be, and they delivered that much better offer at a much better sale price. (Max, 5:00)

A savvy, experienced broker makes all the difference and will put more money in your pocket. If you’re thinking of selling your mobile home park or RV community, call Paul Schaaf or contact Max Baker at The Mobile Home Park Broker, (678) 932-0200. You can also drop us a line at [email protected].

Power Quotes in This Episode:

Regarding the park sellers. “They ended up clearing six figures more, due to our recommendations and experience in the field.’ (Paul, 4:10)

…we saved them a boatload when it closed. So that was a really good part of the deal where the owner was just thrilled with our expertise and we put a big check in their pocket at the end of the day.” (Paul, 4:10)

“(We’re) here to put more money in owners’ pockets.” (Paul, 6:26)

In this episode of The MHP Broker’s Tips and Tricks podcast, Maxwell Baker, founder and CEO of The Mobile Home Park Broker, will discuss the company’s Sellers Guide, a book he authored with valuable advice for selling mobile home communities. 

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 overviewed and read directly from the book he wrote to help mobile home community sellers recognize and avoid disastrous obstacles, bad decisions and sleazy buyers and brokers. (Max, 0:22)
• You’ll learn how to pick the right broker and dodge the wrong ones. Here’s how Chapter One starts. (2:03)
• Chapter One of the Sellers Guide starts by highlighting the importance of knowing the value of your park before it goes on the market. It can be equally disastrous if you price it too high and drive buyers away, or leave money on the table by pricing too low. Make your park as attractive as possible before it goes on the market by improving the infrastructure, cleaning up books and records, and making other changes that improve curb appeal and heighten buyer interest. The better the the condition of your financial records, and the more data you have, and can show interested buyers and their lenders, the more money you’ll make. Also, keep up the reputation of your community. Get rid of the riffraff. No one wants a park where the police are called in nightly, (2:35)
• It might be tempting to do a lot of cash business as you run your park, keeping your tax responsibilities low, but that will bite you in the ass when you go to sell your park and it looks, by the records you do release, like the park made very little money. So keep clean, honest books, pay your taxes, and make more when you sell your park. Buyers and lenders want to see receipts and deposit slips as proof of what you say you make. (5:00)
• The less risk for the buyer the better when it comes to sewer and utilities. Septic systems can go bad and have to be expensively replaced. City water and sewer and roads are always a prime attraction in a sale because these responsibilities can be ignored by the new park owner. (10:13)
• Max frequently gets emails from rookie investors looking for 10 percent CAP deals, and he laughs them off. 10 CAP deals go off the market very quickly, and not to newbie buyers. Get realistic. Also, the least desirable parks are those with lagoons or privately owned sewage treatment plants. (11:30)
• When it comes to park-owned homes on your property, institutional lenders don’t like to see many. Community lenders, on the other hand, are more generous. Institutional lenders generally like to see no more than 15-25 percent of homes to be park-owned, though it can sometimes go as high as 30 percent. Park-owned homes can also be a stumbling block for buyers. Many don’t want the responsibility of having to keep up with maintenance and repairs, and would rather have a park full of tenant-owned homes. (12:27)
• The most valuable communities are those where the city owns and maintains all of the roads, and the water and electric utilities are direct billed. Dirt roads command the least respect by buyers, but it’s helpful if at least those dirt roads are owned and maintained by the city. (13:32)
• Your buyers are also going to be very interested in knowing about your park management. Do you have someone on site? Will they want to stay on for the new owners? Some buyers prefer to install their own professional management team, but it’s a subject of critical importance during negotiations. This is where the topic of park-owned is back in the conversation. If you have a lot of park-owned homes, buyers think they’ll have to have someone on-site for a lot of repairs and maintenance. If it’s mostly tenant-owned homes, they might feel more confident that it’s more of a turnkey operation nd they can operate the park from afar. At any rate, be ready to discuss the management situation. (14:17)
• Chapter Two of the Seller’s Guide is about some common mistakes park sellers make. First of these is to miscalculate expense ratios. Unless your park is big on such hands-off features as direct billing of utilities, and city-owned roads, your expense ratio is probably in the neighborhood of 30 to 40 percent. (17:47)
• Another leading mistake this chapter points out is the failure to prepare the park for sale at the highest possible price. You want to put it in its best light possible, even if it’s just a matter of cutting the grass, getting rid of debris, and patching potholes if you own the roads. This cleanup might not be as important if your park sits in the middle of a retail center and your prospective buyers are all developers who plan to tear the park down and redevelop the space. Otherwise, basic cleanup can put thousands of additional dollars in your pocket that you’ll miss otherwise. (19:10)
• Big seller mistake #3, according to Max’s book, is not being honest and straightforward with your management team about your plans to sell the park. Your on-site manager is at the heartbeat of the community. Everyone knows them, and you don’t want this person spreading rumors or bad vibes. Buyers can smell turmoil in a community, and they want no part of it. They also don’t want an on-site manager who might be pissed off and leave right after the deal closes. (22:16)
• Another mistake can be doing business with Wall Street “wheeler-dealers” without having a broker like Max and his people on your side. Max made this point with an anecdote about an Alabama park seller who asked him to review a deal by Wall Street types. The buyer was demanding 120 days due diligence that wouldn’t even start until the seller turned in a load of requested paperwork that could take 30 days to acquire. The lesson here, according to Max, was to not try to deal with the highly educated Wall Street types without having someone on your side who understands your culture, speaks your language, and knows how to run a deal that’s fair to the sellers. (25:29)
• Once the Alabama seller dumped the Wall Street guys who wanted to close in something like 180 days, Max was able to get them a buyer who closed in 45 days. (29:31)
• The next big mistake sellers make is neglecting to formulate an exit strategy. They’re going to get a lump sum of cash, and it’s in their best interest to be able to keep as much of it as possible. That means knowing how to invest that lump sum and reduce your tax load as much as legally possible. Max works with, and can put you in touch with, tax experts who can help you negotiate your state and federal tax load. (30:27)
• Another big mistake park owners make is with insurance. They might carry too much homeowners insurance on old homes worth no more than $5,000. On the other hand, they won’t have liability insurance, which can leave them liable for getting sued for a dog that bites someone, or someone wanders into the community and gets hurt. Rethink your insurance coverage. (32:42)
• Chapter Three of the Sellers Guide is about how to cash in on your financials. Keep good books, is the bottom line. Have at least two years of tax returns you can show a buyer or lender, and at least eight to 12 months of rent deposits. To illustrate this point, Max told of a seller in mid-Georgia who “didn’t like to pay taxes.” He also didn’t deposit rent checks. He had a nice, tidy park, but zero financials. The only interested buyer said he wanted a six-month close. During those six months, he wanted the seller to deposit rents in a bank so he could prove the revenue generated. During this very long closing, COVID took place, the buyer’s partner left, and the deal fell through. The lesson: have your financials clean and lined up, ready for inspection. AND PAY YOUR TAXES! (41:21)
• Another mistake with financials that sellers make is in not keeping the titles for the mobile homes they own. Typically, a community bank is going to want to see the title for every park-owned home in the deal. For some reason Max doesn’t fully understand, big institutional lenders tend to care less about those titles. Max can usually still get the deal done if you don’t have titles, but it could be more of a hassle than you need. (44:33)
• Owner financing can be a very good thing for sellers. For one thing, they can get a better price. It’s worth the extra money for the buyer, who gets to avoid the multiple hassles of getting loan approval from a bank or other commercial lender. (47:03)
• Max can show sellers how to put together a good owner financing deal, at slightly higher than market interest rate with 20-50 percent down. (48:21)
• Chapter Four is on tips to prep your park to maximize your sale price. First impressions are critical, so make sure your community is as aesthetically pleasing as possible. Such niceties as landscaping and freshly paved roads do matter. (50:46)
• Replace and install skirting around your homes and pressure wash the gunk off them. Get rid of rust spots on metal roofs. (52:22)
• Max points to a park in Birmingham, Alabama. It was an ideal community in a lot of ways: city-owned roads, city water and sewer, etc. But the grass was overgrown, the park sign was old and hidden in vegetation, there was moss on the homes. Max recommended a series of improvements, but the next time he came by almost none of them had been done. The owner said he was old and just wanted out. So Max sold the place as is. It was a park worth $1 million, but he got only about $800,000. For, at most, less than $25,000 in general cleanup and improvement costs, the retiring owner lost about $200,000 in sale price. Not very smart. (54:29)
• The title of the next book section is, “Appraisers and Buyers are Eagle-Eyed.” In addition to looking at the financials and curb appeal, bank appraisers look at sale comps–what similar properties are selling for in the market. That’s why Max’s company stays current on sale and rent prices and can provide lenders with the information they need to evaluate sale price. This is a valuable selling tool. (56:04)
• In Chapter Five, Max has indicated five kinds of buyers (including one to be avoided at all costs.) This includes The Turnkey Buyers…they want deals where they won’t be needed day to day because on-site management is in place, as is direct billing, high occupancy, etc. But they’ll pay for that hands-off ease, so they’re good buyers. Retirees…are looking for a good place to live, as well as a business. Your park will be appealing to them if it’s in the Sun Belt and a quiet community. Value-Add Buyers….want properties that they can get for a bargain because the parks need work. These are often in secondary or tertiary locations. They’re good buyers to find if you basically want out without doing a lot of work to maximize profit, but others go around all the time making inadequate offers on properties, which makes Max think of them as time vampires because they just suck the time right out of you. First-Time Buyers…these buyers might have gone to seminars and are trying to work “no money down” deals. They often have little or no money, so they can be tough to work with. (1:00:39)
• Scam Artists are, by far, the worst type of “buyers.” Max has a database of these individuals and he actually labels them as “Scam Artists.” These people never put up earnest money, they make big promises and have no intention of delivering. Max and his brokers immediately recognize these people, which is yet another reason you need The MHP Broker, to help you avoid wasting time with Scam Artists. The Max team can also immediately identify other buyers by type, and know how to relate to each. (1:01:10)
• Chapter Six of Max’s book deals with the risks of trying to sell your park by yourself. You need a professional, extending professional guidance and mediator services when you sell. We can direct your community to the right kind of buyer and be able to tell you whether or not a buyer is legit. We’re professional negotiators who can help you get the optimal price for your community. (1:03:21)
• One section of Max’s book, “Mythbusters” blows up the myth that you, the park owner, can easily sell your own property and make more money than if you hire a broker. In truth, you might be left vulnerable to wheeler-dealers or scam artists who can leave you hundreds of thousands of dollars shy of what you should be able to sell our park for. (1:08:06)
• Chapter Seven deals with how to get the RIGHT broker for your deal. Hiring a specialist is always your best option. In other words, a real estate agent who only deals with mobile home parks as opposed to one who might sell commercial real estate or traditional homes. This market is unique, and it needs someone with a unique skill set and area of experience and expertise. Max has, over his 15 years of experience, identified several versions of the WRONG broker: the Wheeler-Dealer Brokers…they’re fast talkers who come across as untrustworthy sales guys. Then there’s the brokers who promise you an unrealistically high sale price, one that’s nowhere near what the market will bear, just to get the listing.  The Brokers Who Buy Listings…want to get your listing at any cost. They don't care if it doesn't sell, because they're using your listing to get more listings. They just want to look busy in their marketplace. (1:11:04)
• Max has also identified so-called National Brokers…those who say they operate all over the country–and they might–but they don't have a clear idea of where your market rate is at. If you’re in rural Georgia, you have no interest in what mobile home parks are going for in Boulder, Colorado. Maybe the worst broker is…The Ghost Broker…that’s the one who basically disappears as soon as your property goes under contract. It’s as though this broker’s job was to get the listing..not to actually sell the property. That’s hard work. (1:13:30)
• And finally, there’s The MHP Broker…These guys have researched the entire state and found out where rents are at, and have identified the most active buyers. They set realistic sale expectations and stay engaged once your property goes under contract. The MHP Broker stays two steps ahead of all situations on your deal, so we can put out any potential fires before they even happen. This broker will advise you to possibly make improvements to increase your price and lower the park's perceived risk profile. Finally, your The MHP Broker team has connections with most, if not all, of the local lenders who will finance the deal in transaction for you. This brokerage team only deals with mobile home and RV parks, and is a one-stop shop for anything related to this industry’s marketing and sales because we do it every damn day. (1:14:20)
• The book’s next section is called “Thinking Regional.” It’s here where we present the way we do business, with the regional data that matters to you when reaching for an optimal price. We crunch numbers to see what the local economy is like, employment, culture, and the mood on the ground. All that and a lot of other numbers that help us set optimal sale price strategy. 1:15:25)
• “Thank you for listening to this summary of my book,” says Max Baker, signing off of Sellers Guide. (1:17:46)

Are you thinking of selling your mobile home community? @Wo\uld you like to get optimal price–guaranteed. Reach out to Max Baker at The Mobile Home Park Broker, (678) 932-0200. You can also drop us a line at [email protected]. While you’re at it, ask for your free copy of our Sellers Guide.

Power Quotes in This Episode:

Failing to research a plan and exit strategy can spoil your future or leave you vulnerable to excess taxation.” (30:27)

“The more information you have, the higher the price you’re going to get.” (35:56)

“...appraisers look at your property much like buyers. They'll examine the local lot rent and their sales comps. They're going to look for curb appeal and for what the park's first impressions would be due to its current appearance. (56:04)

“We do come across bad eggs (among competitive brokers) every once in a while, we label them as Scam Artists in our actual database. We all know that every industry has them. These people do things like re-trade deals for no reason right before closing, never deposit Earnest Money, make big promises with no intention of delivering. (1:01:10)

“We have the ability to ask the right questions, interpret prospective buyers’ answers, and gear the marketing of your community to a certain type of buyer.” (1:03:21)

In this episode of The MHP Broker’s Tips and Tricks podcast, Maxwell Baker, president of The Mobile Home Park Broker, interviewed MHP broker Eric Wanck regarding the challenges he faced in his two-park sale in Talladega County, 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

• Eric recently sold a two-park portfolio in the Talladega, AL area. They were good parks, with city water and nearly full occupancy. But there were also challenges, such as the fact that both parks had fewer than 30 pads, and it was a mix of park-owned and tenant-owned homes. Also, there weren’t a multitude of qualified buyers in the local economy. As a result of the various challenges, the parks sat on the market for four months. Then a buyer’s agent approached Eric with a client who was a local investor who could buy one of the parks with no financing. As a result, that park closed quickly, in about 30 days. (Eric, 1:22)
• This sale proves that even smaller markets can sell. It was a good job on Eric’s part, especially when you factor in that Talladega is a very small town, with few potential investors. (Max, 3:13)
• It was a win-win for everybody. (Eric, 4:29)

Do you have a smaller-market mobile home park with all sorts of challenges thrown in? Contact Eric Wanck or Max Baker at The Mobile Home Park Broker, (678) 932-0200. You can also drop us a line at [email protected].

Power Quotes in This Episode:

“Talladega is a prime example of us being able to succeed when others could not.” (Max, 3:13)

“We keep grinding, so to speak, for the seller, and trying to find a buyer. At the end of the day, they were very happy and it was a win-win all around.” (Eric, 4:29)

In this episode of The MHP Broker’s Tips and Tricks podcast, Maxwell Baker, president of The Mobile Home Park Broker, interviewed broker Jeff Dodge regarding his sale of Mercer Mobile Home Park.

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: 

• Jeff Dodge sold Mercer MHP, a community also known as Hawaiian Village Mobile Home Park. It’s the third time Max’s company has sold that park over the years. (Max, 0:22)
• The park had certain attractions, including good lot rents, city water and sewer, and paved roads throughout. But there was a downside, culminating in a low 35 percent occupancy rate. Many of the park-owned homes needed extensive rehabbing or removal. The broker’ challenge would be in finding a buyer who understood the problems and could add value and stabilize the community. (Jeff, 1:27)
• Jeff received multiple offers for the park and settled on an investor with which The MHP Broker has successfully done business with on multiple occasions in the past. He paid cash. Jeff knew the investor had the capital and the familiarity with the area to make it work. (Jeff, 2:19)
• Max remembered the park being a rough sale even when he first sold it, twelve years previously. (Max, 2:45)
• The deal was hanging in the balance for awhile, but one thing that incentivized the buyer was when the seller added an adjoining ten acres that was originally not part of the deal. The lesson is to get creative and stay flexible to keep a good deal alive. (Jeff, 4:19) 

Even the “hairiest” deals can be kept alive if you have a talented and experienced broker on your side. Contact Jeff Dodge or Max Baker at The Mobile Home Park Broker, (678) 932-0200. You can also drop us a line at [email protected].

Power Quotes in This Episode:

“We sell these types of deals all the time. They're rough parks. If you can handle the riffraff and the management, you can make a lot of money doing these deals, they just require a lot of TLC, a lot of hand holding, and really running it with an iron fist. So, that's the only way people could really turn this park around.” (Max, 2:53)

“So if you all have some hairy deals, there is a buyer out there for you, and I can promise you that. And we typically are really good at finding all-cash buyers, if you want to structure the financing, we're good at getting that structured.” (Max, 2:53)

“It was great to work with reasonable sellers and an experienced buyer and at the end of the day we were able to get to the finish line and feel like it was a win-win for both parties.” (Jeff, 4:19)

In this episode of The MHP Broker’s Tips and Tricks Closing Cocktails podcast, Maxwell Baker, president of The Mobile Home Park Broker, interviewed MHP broker Paul Schaaf  about his Adventure RV Park close in 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:

• Adventure RV Park in West Virginia had a nice mix of mobile homes, RVs and cabins, but one of its leading challenges was its 30 percent year-round occupancy. It was a mom and pop operation whereby the original owners had sold it to a party that failed, and then those original owners had gotten it back. They invested some capital in upgrades, but there was still plenty of “meat on the bones” for the right buyer. (Paul, 1:03)
• The park had some things going for it, including the fact that there was a new gas line project bringing in workers to the area, and a ski resort in close proximity. (Max, 1:48)
• The Mountain Valley pipeline project kept bringing in workers in need of housing. Even before closing, the park went from about 30 percent occupancy to nearly 100 percent RV occupancy. (Paul, 2:01)
• The park’s business was improving so quickly that the buyer actually snipped the closing timeline by about 30 days. (Paul, 2:32)
• The buyer refinanced some of their existing parks so they could present an all-cash deal. (Paul, 3:05)
• The lesson buyers might learn by this deal is to not be threatened by low occupancy. There are often things you can do to improve occupancy figures and increase the value of your new park. (Max, 3:22)
• The park sale was a win-win situation, with the buyers getting plenty of potential and the sellers being able to retire with an all-cash closing. (Paul, 4:07)

Whatever challenges your RV or mobile home park might have, let Paul Schaaf and The Mobile Home Park Broker team will find you a qualified buyer and maximum value. Call Paul of Max at (678) 932-0200 or drop us a line at [email protected].

Power Quotes in This Episode:

“I think we actually improved the closing timeline by about 30 days so (the buyers) could capitalize on that fresh income.” (Paul, 2:34) 

“We'll figure out a way to find the right buyer for you and get you as much money as we can and, you know, just give us an opportunity to consider…what your goals are and I'm pretty sure we can obtain them. So, just give us a shout when you get a moment.” (Paul, 4:07)

In this episode of The MHP Broker’s Tips and Tricks Closing Cocktails podcast, Maxwell Baker, president of The Mobile Home Park Broker, interviewed MHP broker Eric Wanck about his very unique mobile-home-park-turned-RV-Park deal in Florida.   

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:

• Eric had a couple unique challenges in closing on Cracker Lake in Florida. In the first place, the park was totally vacant. And in the second place, it HAD been a mobile home park, but it was being converted to an RV community. The conversion followed a hurricane that completely wiped out the mobile home park which, at the time, had a few smaller mobile homes and some tiny homes. The city refused to let the owner continue operating the community as a mobile home park unless they raised the homes a foot off the ground in the floodplain. However, the city recommended the conversion to non-permanent housing in the form of an RV park. Rhus was born Cracker Lake RV Resort. (Eric, 1:36)
• This follows a trend where the brokers are starting to see a lot of vacant mobile home parks get attention from buyers. (Max. 3:23)
• The sale was to a local buyer who had 1031  funds and only needed a small seller note of less than ten percent for 12 months. Due diligence was done quickly and smoothly, and the buyer and seller worked well together. The park sold at near list price. (Eric, 4:23)
• Eric agreed with Max’s comment about seeing a good market for vacant or near-vacant mobile home parks. (Eric, 4:44)

If your mobile home park is vacant or near-vacant. No problem. Eric Wanck can find you a motivated buyer. Contact Eric or Max Baker at The Mobile Home Park Broker, (678) 932-0200. You can also drop us a line at [email protected].

Power Quotes in This Episode:

“We were selling essentially vacant land with infrastructure in place.” (Eric, 1:36)

“It was a really nice project for someone to come in, do a little bit of work and capital expenditures, and essentially open the gate” (Eric, 1:36)

“I chuckled because there's always a little bit of a hiccup with due diligence. But for the most part, it was smooth and very happy all around. Great folks to work with on the sell side and the buy side.” (Eric, 3:42)

In this episode of The MHP Broker’s Tips and Tricks podcast, Maxwell Baker, president of The Mobile Home Park Broker, interviewed fellow podcaster, mobile home community portfolio owner and industry syndicator Andrew Keel.

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:

- Veteran mobile home park owner Andew Keel also runs the Passive Mobile Home Park Investing Podcast as well as running park investing syndications all over the country. (Max, 0:22)

- The current count is ownership of 42 mobile home park communities. Andrew graduated from Augustana University in South Dakota. (Andrew, 1:30)

- Andrew started out in sales after college. He ran a small team that sold websites, business cards and other sales merchandise to real estate agents. From that influence, he started buying, fixing up and flipping homes as a side business. (Andrew, 2:27)

- One day Andrew got a lead on the availability of two vinyl-sided mobile homes for sale in Ocala, FL for just $2,200 for the pair. Figuring it would cost more than that just to manufacture the homes, he quickly resold them to an eager market of homebuyers. He earned $2,500 down payment for each, and monthly payments of $250 for five years. From that point he started watching Youtube videos on how to buy and sell mobile homes. He also met a park owner who educated him on how he could raise investors’ money through syndication in order to buy mobile home parks in quantity at at a quicker pace. (Andrew, 3:07)

- It was quite an accomplishment, going from buying two mobile homes to owning 42 communities in just a few years. (Max,5:16)

- Andrew also takes advantage of a bank investing program known as Cash LEAPS. As a syndicator who might have a few millions dollars accumulated in a checking account, Andrew lets his bank invest it overnight, when he doesn’t need the cash, and have it back in his checking account by first thing the next morning. In this way, he earns significant interest during the time of day when he doesn’t need the money anyway. (Andrew, 6:56)

- There is a fee of about $100 a month for this service, but it’s well worth it. (Andrew, 7:59)

- Andrew cautions mobile home park prospective investors about ways it can cost more to operate a park in the north. He owns a park in Minnesota and another in North Dakota where each home runs on propane heat, and he has to take that into cost consideration during the winter. There’s also snow removal costs which southern park owners don’t even think about. (Andrew, 9:10)

- Eviction laws vary, state by state. In general, red states have fewer regulations, and evictions are faster and easier, and blue states make it more difficult. Andrew mentioned a park in New York State where the judge would give the evicted tenant 90 days to move out, and then grant the party an additional 90 days afterwards, for no additional reason. He tries to buy parks in red states where eviction laws are minimal. (Andrew, 11:35)

- Andrew and Max discussed recent class action lawsuits on large mobile home community chains for price gouging. Andrew isn’t sure that the communities will lose all of these suits, but it will be expensive. (Andew, Max, 14:09)

- Local zoning laws can also make it difficult to move homes into communities. Some say they won’t accept any home older than ten years, regardless of its condition. This creates an added challenge to park owners who want to expand their footprints.  (Max, 15:03)

- Park buyers need to immediately make appointments with zoning officials and find out exactly what they can and cannot do. The local authorities aren’t necessarily in the wrong. They just want to save their larger communities from having a rundown park in its boundaries. (Andrew, 16:00)

- Andrew’s long-range goal is to continue to expand his mobile home park portfolio and to  be able to offer good, affordable housing to those most in need of it. (Andrew, 17:47)

- Once they have a park, they work hard to add value by bringing in new homes and rehabbing existing homes, metering the water, etc. (Andrew, 18:23)

- In his time as an entrepreneur, one of the things Andrew learned is that the number one reason people leave an organization is because they don’t feel valued. Another valuable lesson is to avoid “time suck” activities that don’t add value to the job and just create a drag on productivity. (Andrew, 19:20)

- Andrew has also learned to use people’s names because it has a profound affect on drawing them in. It’s their favorite sound. (Andrew, 20:26)

- And finally, he’s learned to move a little slower, not constantly make deals and to be choosier in the deals he makes. He’s now a more careful community buyer. (Andrew, 21:48)

- You can reach Andrew through his website at keelteam.com. Fill out the online form and make a Zoom appointment to talk shop personally with Andrew. (Andrew, 23:01)

Would you like to expand your mobile home park portfolio like Andrew. Reach out to him at Keelteam.com. Or contact Max Baker at The Mobile Home Park Broker, (678) 932-0200. You can also drop us a line at [email protected].

Power Quotes in This Episode:

After buying two used mobile homes for $2,200 total. “It had to cost way more than $1,000 to build one of these things. So I bought them, got the titles, came home and got on YouTube and typed in ‘how to make money with mobile homes.’” (Andrew, 3:07)

Upon learning how to put together syndicate deals and be the managing partner. “That was the a-ha moment.” (Andrew, 3:07)

“It's…awesome, being able to provide that affordable housing for people that desperately need it. But also create a good return…for your time and effort and money invested.” (Andrew, 5:30)

“The asset class has been good to us and we have subsequently been able to provide affordable housing units that otherwise would have sat vacant, you know, with the previous owner.” (Andrew, 17:47)

In this episode of The MHP Broker’s Tips and Tricks Closing Cocktails podcast, Maxwell Baker, president of The Mobile Home Park Broker, interviewed company broker Paul Schaaf on his recent success handling the Glenwood Mobile Home Park transaction in Tennessee.  successful deals. 

This and every episode of Closing Ccktails is presented 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:

-       Paul took on Glenwood MHP, a great TN park that proved challenging to market because of the small size of its lots. But Paul found the right buyer, and the right solutions to the park’s problems, and was able to close--just as he can close on your park despite whatever challenges it might have. (Max, 1:09)

-       The park’s in a good location of eastern TN, which is turning into a strong retirement area. The region also has some of the best golf courses in the state. Glenwood had about 60 lots, but was only at about 37 percent occupancy. There was a lot of opportunity there since other mobile home parks in the area were at about 90 percent occupancy with home rents at the $900 - $1,200 range and lots averaging about $400 - $450 a month. There were a lot of offers for Glenwood, but those small lots ultimately drove serious interest away. (Paul, 1:43)

-       One of the big stepsPaul had his client take was to move some of the power lines to open up the space. They also found a couple manufacturers who ere making smaller, two-bedroom homes that would better fit the space and could be arranged strategically with the larger homes to improve lot sizes and the look of the park. The fact that the property was on city water and all pads already had infrastructure in place were good selling points. And there was a big demand in the area for affordable housing, so the newly laid out park was now much more desirable. (Paul, 3:27)

-       The buyers were a family very experienced with commercial real estate ownership, but they were breaking in to the mobile home park business for the first time. They were very careful with their due diligence. Paul thinks they’ve already raised rents and are infilling those empty lots. (Paul, 4:41)

-       Paul learned from this deal the importance of knowing what you’re going to be up against that might challenge the sale and to come up with effective solutons. You’ve got to be able to see the park for what it is, and how it can be improved if it has to be to meet market expectations. (Paul, 5:35)

-       If you’re a buyer in a decent market, even a park with problems can be improved and value added if you know how to do it and are willing to invest the time and money. (Paul, 6:24)

Even parks with warts can attract motivated buyers. We can show you how to add value to a park in a great location, even if significant work must be done. Call Paul or Max at The Mobile Home Park Broker, (678) 932-0200.

Power Quotes in This Episode:

“We are very good overcoming (challenges) because we’ve seen everything thrown at us in the mobile home park and RV world.” (Max, 1:09)

“It was just a matter of putting together the best plan because the demand for affordable housing was there.” (Paul, 3:27)

“I think (the new owners) are already infilling and have raised rents. And they’re already off to the races and have done well.” (Paul, 4:41)

“If you have the right plan together, and you know how to infill quicker, and you’re in a decent market, you know, when things change in the next three to five years you’re gonna be sitting in a really good position.” (Paul, 6:24))