In this episode of The MHP Broker’s Tips and Tricks Closing Cocktail podcast, Maxwell Baker, president of The Mobile Home Park Broker, interviewed top broker Ryan Ramseur about two of his recent transaction successes.
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:
Want to buy or sell your RV park or mobile home community in Texas, North Carolina or just about anywhere in the nation? Just drop Max Baker a line at firstname.lastname@example.org or give him or Ryan a call at (678) 932-0200.
Power Quotes in This Episode:
“Given the layout of the park (White Oak) and the income there, it was pretty much a no–brainer for (buyers).” (Ryan, 1:47)
“If you’re looking to do a lease-to-own program, (“21st Mortgage has) some great incentives for sellers, as well.” (Ryan, 4:33)
“Buyers, you know, I think are still a little sceptical of what’s going on with interest rates and where the market’s heading, understandably, and sellers are still kind of grappling with the way that things are currently with the market.” (Ryan, 5:43)
“If sellers have realistic expectations about where the market is today, part of what we do is to be very transparent upfront. And our job is to show them where the market is, and where we see deals trading.” (Ryan, 5:43)
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 closing cocktail by the mobile home park brokers tips and tricks, 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 with us, give us a call (678) 932-0200 and today we have Ryan Ramseur here to give us some insight on the two deals he recently closed. One being in Texas, and the other one in Fayetteville, North Carolina. So, Ryan, welcome to the show.
01:06 Ryan Ramseur
Thanks for having me, Max. It’s good to be back.
01:09 Maxwell Baker
Yeah, man, it’s good to have you finally back here in the saddle and in slinging deals. It’s always good man. So, tell us a little bit about your Texas deal, White Oak deal.
01:18 Ryan Ramseur
So, this Texas park it was a smaller but stabilised Park 25 pads in total, located about halfway between Beaumont, Texas and Lake Charles Louisiana, kinda on the Louisiana Texas border. Good operation Mom and Pop ownership, large lot sizes, the park was on city water and sewer and all Park on homes.
01:46 Maxwell Baker
01:47 Ryan Ramseur
Typically, what we see in those parks are sometimes not neglect of those mobile homes. But this particular owner had a very strong pride of ownership took care of everything. The tenants were a long-term tenant base and they in return had had pride of ownership as well. So, the park was in really good shape. We actually were able to source a local buyer there who has other parks in their portfolio in the general vicinity. We’re looking to acquire more parks to add and it was a relatively smooth transition or transaction I should say. I believe we were on the market for 10 days before we had an executed contract. Yeah, given given the layout of the park and the income there, it was pretty much a no brainer for them.
02:44 Maxwell Baker
What kind of debt did they get? Or was it all cash?
02:47 Ryan Ramseur
This was a cash offer.
02:49 Maxwell Baker
Nice. So, they still happen out there. The unicorn all cash offers still exist. Well, that’s great, man. Well, congrats on that and if any Texas owners have a deal out there that they are looking for we were able to drum up several buyers. So, give Ryan a call. If you have an interest in maybe soliciting an offer on your community. We do exclusive deals and occasionally we do off market deals. So, give us a call happy to look at your deal and see where it takes us. Moving on to the Evergreen in Fayetteville, North Carolina. Fayetteville is one of the fastest growing area in the country. I think it’s like top 5 or 10. And this deal moved relatively quickly as well tell us a little bit about evergreen.
03:34 Ryan Ramseur
Yeah, absolutely. Max with Fayetteville, they’ re having increased population over the last five years. There particularly due to Fort Bragg, which is the Army Airfield there, which is pretty much the centre of the economy there in Fayetteville, but this park, another really nice park 39 spaces. City Water, city sewer on this one, the sellers at the time when they acquired the park, This was a turnaround project and so they came in they spent significant CapEx dollars to basically redo all the infrastructure in the park. Brand new electric metres on every single site. They paved the roads, took some trees out. They turned all of the tenants for the park owned homes that they had on to rent to owns and they coupled that with 21st mortgage.
04:33 Ryan Ramseur
So if the listeners out there don’t know about 21st mortgage they’re a great provider. If you’re looking to do a lease to own program, they have some great incentives for sellers as well. But this was direct build city water, direct build city sewer, very low operating expenses. It was turnkey and very stabilized and as Max alluded to, Fayetteville is becoming a major, major MSA believe we had this park on the market on a similar timeframe, maybe a week to two weeks, multiple offers. When I say multiple offers, I mean, seven to eight offers out of the gates. This was one of the hotter commodity parks that we had. And ultimately, we found the right buyer and we’re able to close fairly quickly.
05:24 Maxwell Baker
Nice man. Well, out of the two deals, tell us a little bit about what’s going on on the market right now. Like, are you seeing more activity, slower activity? No, we just had a couple of banks fail here recently, and the economy starting to get slowed down, What are you seeing in the park world right now?
05:43 Ryan Ramseur
So, it’s interesting, you know, buyers, you know, I think are still a little sceptical of what’s going on with interest rates and where the markets heading, understandably, and sellers are still kind of grapple with the way that things are currently with the market as it is present day. So there’s still some discussions around trying to find true value there. But I think that certainly if sellers have realistic expectations about where the market is today, you know, part of what we do is be very transparent up front. And our job is to show them where the market is, and where we see deals trading.
06:25 Ryan Ramseur
So, I think as long as sellers have realistic expectations of where things are going to be at, there’s still great deals to be had as evidence with Evergreen in Fayetteville and White Oak over there in Orange, Texas. So, they’re still out there and with the new information coming out with the Fed, possibly doing a rate cut in summer. I think that’s only going to add more momentum for mobile homes and RV park transactions moving into quarter, two and three this year.
07:00 Maxwell Baker
Cool, man, any closing comments here before I sign off
07:04 Ryan Ramseur
Give us a call. We’d love to help you out. Hope to be joining you again here soon. Max.
07:09 Maxwell Baker
Yeah, man, we just closed Breezy Acres, which we’ll probably do a closing cocktail or eventually but yeah, so like Ryan said, give us a call (678) 932-0200. As for Ryan, he’s a wealth of knowledge when it comes to, you know, all deals in all the of the southeast and Northeast and Midwest part of the United States. We’re doing deals everywhere, y’all. And the units that are 20 units and above typically, and I mean, we’ve got a nice big deal here in Atlanta, we just listed two so we do all sorts of mobile home park deals. So, don’t be shy. Give us a call. Appreciate y’all’s time and let’s keep moving forward!