MHP Closing Cocktail Podcast, FL 48-pad RV Community

MHP Closing Cocktail Podcast, 48-lot RV Community in Florida

In this brief Closing Cocktail episode of The MHP Broker’s Tips and Tricks podcast, Max Baker interviews MHP broker Ryan Ramseur on his recent close on a 48-lot RV Community between Tampa and Gainesville on Florida’s popular Gulf Coast.

Max is the co-founder of The MHP Broker. This and all of the Tips and Tricks podcast episodes are brought to you by our 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 us. Guaranteed. Ask us for details.

Here Are Show Highlights:

• Congratulations on Ryan’s very recently close on 48-lot RV Community, a small- to medium-size RV park on Florida’s Gulf Coast. (Max, 0:22)
• Ryan got the listing on a cold call to the park owner. The offer came in two days before the park was scheduled to be marketed by Ryan. The seller wanted to take the full price offer, with great terms, from someone he was already working with on another deal. (Ryan, 1:11)
• The park had a good mix of park-owned and tenant-owned homes, 90 percent occupancy and all public utilities. Rents are below market in a very beautiful area with manatee (and tourist) sightings. (Ryan, 1:11)
• Transactions that go that smoothly are rare, especially with small to medium mom and pop parks. Typically, the company doesn’t prefer parks to sell until they’ve done the marketing so the actual value can be established, but this happened organically. The seller was already doing business with this buyer, so it went quickly. (Max, 2:16)
• The way this deal came together illustrated the importance of buyers reaching out and staying in touch with brokers like Ryan if they’re looking for deals, because those deals can move very quickly. (Max, 2:16)
• Don’t send an email because all of the MHP brokers get hundreds of them daily. Instead, phone or text. Come with proof of funding, show your real estate investment portfolio and the financing you have lined up. (Max, 3:26)
• The only real challenge was that this deal was tied to another deal Ryan wasn’t involved in. That was kind of a unique situation. The park was offered at an 8.3 cap. They had recently sold another RV park nearby for a 6.5 cap, so they knew the price was right. (Ryan, 4:12)
• Ryan’s got a ton of other deals going on in Florida. The market there is extremely hot for RV and mobile home communities, so you have to contact him by phone at (678) 932-0200 if you’re looking to make a deal. (Max, 5:19)

Power Quotes on This Episode:

“They were below market rates…definitely a value-add potential for any new owner coming in.” (Ryan, 1:11)

“Things went very smoothly from start to finish, and quite frankly I wish they were all like that.” (Ryan, 1:11)

“The seller said, ‘Hey, this guy is interested, and he’s buying something else from us.” (Max, 1:11)

“The fastest way to get to the back of the line when it comes to brokering deals as a buyer is not coming to the table with all your stuff (proof of financing and past real estate investment action) lined up.” (Max, 3:26)

“I would have loved to have seen it on the market.” (Ryan, 4:12)

“At the end of the day, the seller was happy.” (Ryan, 5:13)

Call Ryan or Max if you’d like to make a deal on hot-selling RV or mobile home communities in Florida or elsewhere in the southeast U.S. Call us up or text us at (678) 932-0200.

00:02

Hello and welcome to the mobile home park brokers tips and tricks. This is the podcast where we talk about mobile home park investing, because that’s what we’ve been involved in for the last decade. Let’s dive into today’s episode. Here’s your host, Maxwell Baker.

00:22 Maxwell Baker 

Hey y’all, welcome to another beautiful episode of the Mobile Home Park Brokers tips and trips podcast. As always, this episode is brought to you by the Community Price Maximizer. It is our proprietary system that will guarantee you a higher price when you exclusively list your community with us. And today, we are doing a closing cocktail with Ryan Ramseur. Ryan (clap sound here and the microphone. Ryan just closed the deal down in Florida recently and we are celebrating actually with a Topo Chico with lime. I don’t know what Ryan’s drinking over there. But we’re celebrating a deal that he just closed recently. Ryan, welcome to the show. Appreciate you jumping on and doing this and love to hear about the story about how this deal came about and all the good stuff that came from it.

01:11 Ryan Ramseur 

Well, thanks, Max. Always a pleasure to join you here especially when we’re celebrating nice closing. FL 46-pad RV Community was a bit of a unique property. Came across it cold calling one day for parks and luckily we got in there and were able to get it listed. We were about to blast it out to the market and we had an offer come in to us two days before we were supposed to come to market, full price offer great terms and conditions and we decided whether to pursue that. Some of the highlights of the park where it was an RV park and mixture of some park owned homes and tenant homes a nice blend. They had upwards of 90% occupancy in the park all public utilities. They’re located in between Tampa and Gainesville on the Gulf Coast of Florida. Very beautiful, known for manatee sightings and watchings over their high traffic area for tourism. They were below-market rents at the time definitely value add potential for any new owner coming in. And overall, just a nice clean deal. Things went very smoothly from start to finish and quite frankly, I wish they were all like that.

02:16 Maxwell Baker

Yeah, it’s pretty rare to have a smooth transaction, especially on these small to medium sized Mom and Pop deals. I mean, to put it bluntly, a lot of financials are back of the envelope, and it takes a minute for us to dissect it and really get to the nitty-gritty of what the community is worth. One thing I wanted to hone in on is that this park went under contract prior to this marketing. Here at the company, we typically don’t like to do that. But it just happened that way organically because the seller said, “Hey, this guy is interested, and he’s buying something else from us”. So let’s just slam the deal together and we said okay, but we thought we’d be better off if we put a little pressure on him. But I think we put it up on the website, we had a slew of people reaching out to us. But the reason why I bring that up y’all is I know there’s a lot of buyers that listen to this. And it’s very important for y’all as buyers looking for deals, to check in with these brokers that are on the team, especially like Ryan, because deals come and go daily. It’s very important that you all check in see what’s going on.

03:26 Maxwell Baker

No emails, call or text because everybody on our team here we get hundreds of emails all the time. So if you really want to get some action, call Ryan call the brokers on our team and really just ask him hey, this is what we’re doing. Come with proof of funds come with a real estate resume come with your financing lined up already. The fastest way to get to the back of the line when it comes to brokering deals for buyers is not coming to the table with all your stuff lined up. So this is an excellent example where Ryan organically this lead came in for the buyer and we put it together and as far as anything you’d learned Ryan on this deal like is there anything you took away from this deal that you’re like yeah, you know, I think I’ll do it this way next time or as far as just like the deal metrics of what it takes to close up are.

04:12 Ryan Ramseur 

So this deal was a little unique as you alluded to earlier. This deal was tied to another park that the buyer was purchasing. And so this purchase hinged on the other purchase and we were really trying to make it both work for our seller for them to have a smooth outcome. So there was a couple points in there that were a little hiccups along the way because one deal tied to another deal which is kind of a unique situation for us. You know, I think they would have been a little bit smoother, had it not been tied to that other deal and then going back to your point on the marketing piece. We did generate a ton of interest when we did put it on the website. However if we rolled out the complete OM (Offering Memorandum) we were very confident based on the cap rate. This was an 8.3 cap. We also sold an RV park in the nearby vicinity of this at a six and a half cap, so we knew that we were, the price was right, and that we can generate a lot of interest here. So I would have loved to have seen it on the market, I think we…

05:08 Maxwell Baker 

Probably could have reduced the price a little more to be quite frank.

05:13 Ryan Ramseur 

Yeah. But at the end of the day, the seller was happy. And we did everything that we needed to do to make our seller happy.

05:19 Maxwell Baker 

Nice and Ryan’s got a ton of other deals that we’re working on. Pretty much anything in Florida is gone in 72 hours or less. Florida is just an extremely hot market for RVs and mobile home communities. So like I said, give Ryan a call here at the office here at 678-932-0200. And like I said, Don’t email, call them because you will get deal flow a lot faster if you get them on the phone, or you shoot them a text X and A on the email day because like I said, we get a zillion. But that pretty much wraps it up. Ryan, you have any closing thoughts before we wrap it up?

05:59 Ryan Ramseur 

Thank you guys, Max. Appreciate the time. Love to hear from you guys.

06:03 Maxwell Baker 

Yes. And as always, this episode is brought to you by the Community Price Maximizer. It is our proprietary system that will guarantee you a higher price when you exclusively list your community with us is a four step process. And like I said, you want to get the highest price when you sell contact Ryan. He’ll show you what you need to do to improve the community and its potential pricing. We don’t say value because we’re not appraisers, but we do have an extremely unique ability to increase the price whenever it’s time to sell. So give us a call. Thanks for your time and let’s keep moving forward.