MHP Closing Cocktail Podcast, SC 77-pad Mobile Home Park

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)

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 

Alright y’all welcome to the mobile home park brokers podcast. We are excited to hear about another beautiful deal that has just closed with Paul Schaf. It was in beautiful SC 77-Pad Mobile Home Park. It is a nice little park with a value add, didn’t even hit the market. We were able to sell it right before but just wanted to say congrats. We’re going to talk a little bit about it on this beautiful closing cocktail podcast. I’m actually drinking a nice big Nalgene bottle, typically what I drink during the day, and we’re going to go a little bit over this deal. So, Paul welcome to the mobile home park broker podcast. Obviously, we talk on a daily basis. But I wanted to highlight you and put you on the website. Tell us a little bit about this deal. Tell us how it came in, tell us about the buyer profile, the great, the bad, the ugly about this community, and some of the cool techniques that you use with the crazy South Carolina taxes that we had to overcome. So welcome.

01:23 Paul Schaaf

Yeah, thanks, Max. It was definitely a fun business transaction. The owner had the park in her possession for over 20 years. It was hard for her to let it go but she understood that it was time to let it go. It was in Hartsville, South Carolina, which is actually a growing area. Her park was in an opportunity zone so it really bode well for the next ownership group. The beauty on this park had direct bill utilities, and it was all public utilities. And then also there was an opportunity to increase the pad counts. So she was only operating at about a third of capacity and so new ownership could expand by another two thirds get it up to close to 80 pads. So that was kind of the overview of the property and the owner herself was just a delight to work with, but needed our assistance to make sure she was covered along the way because there was some tricky things when it came to Section Eight housing and for taxes, and just making sure she was going to be paid at the closing table.

02:31 Maxwell Baker 

Yeah, the South Carolina taxes. If anybody has not done a deal in South Carolina, they have some of the highest real estate taxes in the country. Tell us like what was the taxes, while she was operating?

02:43 Paul Schaaf

15k I’d say

02:44 Maxwell Baker 

Wow. So 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. So anytime y’all have some South Carolina deals that requires some creativity, I guess you could call it that to avoid getting hammered on those real estate taxes. MHP broker was able to help with that.

03:17 Maxwell Baker 

So give us a call anytime you’ll have a deal (678) 932-0200. 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 list exclusively with us, your mobile home or RV park, give us a call. We’ll walk you through this four-step program that will maximize your price when you go to list it and we look forward to hearing from you. You can email us as well at info@themhpbroker.com as well as looking at all of our other deals at www.themhpbroker.com. I appreciate y’alls time and Paul thanks again for jumping on. I look forward to doing some more deals with you.

04:07 Paul Schaaf

Thanks Max.