The MHP Brokers Tips and Tricks Closing Cocktails interview with Paul Schaaf regarding his Adventure RV Park deal

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 info@themhpbroker.com.

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)

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 epic episode of the Mobile 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, I had to think about it for a minute but I shouldn’t know my numbers now! Paul Schaaf Welcome to the show and congratulations on another deal closing, this one was kind of a unique deal out in West Virginia. I’ll let Paul kind of talk about a little bit but Paul, welcome to the show, man. Congrats on getting another one done!

01:03 Paul Schaaf

I appreciate it Max! Good to be closing more deals, especially in a different market. So, this park had a lot going on as far as RV, MH and Cabins but it was a mom and pop operation and they were you know, original owners, and then it sold and that owner failed. Then they said they got it back and reinvested a lot of capital back into it. Still plenty of meat on the bone for the next investor. So, nice to get a good win-win for the owners who are looking to, you know, retire and not have to put into more sweat equity into it and then the buyers were excited about all the opportunity that remained in place.

01:48 Maxwell Baker

This one had some unique things, it was close to a Ski Resort and the natural gas line had happened. Tell us a little bit about the deal. It had a little bit of trouble selling at first, but we were able to find a buyer.

02:01 Paul Schaaf 

Yeah, that’s right. I mean the occupancy was hovering around 30% year round. However, when we were marketing, the geopolitical scene improved. So, the mountain valley pipeline project really picked back up ad they just saw a huge uptick in RV occupancy. It just kept trending in the right direction. I mean, we were close to 100% by the end of the contract period.

02:33 Maxwell Baker

Oh, wow!

02:34 Paul Schaaf

So, it was just that opportunity, the buyer saw the capability of the park. Also, they sold a few other MH units for 20 to 25k. They were older but rehab and in good condition. So, there was still just a lot of things trending in the right direction and the buyers were excited to you know; I think we actually improved closing timeline by about 30 days, so they could capitalize on that fresh income.

03:04 Maxwell Baker

Yeah, how did they get it funded?

03:05 Paul Schaaf

I believe the buyer was reifying some of their other parks and they were able to pull some of that cash together and take, you know, cash transaction on this one.

03:16 Maxwell Baker

So, no debt at all, just all 100% cash. That’s great.

03:20 Paul Schaaf

That’s accurate. Yeah.

03:22 Maxwell Baker

Cool, man. These types of deals are a little bit difficult. Sometimes y’all I mean, you know, a lot of people get a little nervous about having a park that’s 30% occupied would probably make a lot of sellers out there, if you are listening, kind of double think or rethink, I should say, wanting to sell their community thinking that it won’t sell but this is a prime example y’all who were, you know, have lower occupancy community that we, you know, here at the MHP broker, we’re still able to get it done, you know, we’re still able to go be in front of buyers. This one was an all-cash transaction and the sellers were pretty happy on the end. So, Paul great job on this and we’re excited to see the next one you have. Any closing comments here before we wrap things up?

04:07 Paul Schaaf

Well, I guess to your point, you know, 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 to consider your you know what your goals are and I’m pretty sure we can obtain them. So, just give us a shout when you get a moment.

04:26 Maxwell Baker

Awesome. Well, Paul, congrats again on closing another deal. Y’all, thanks for listening to our closing cocktail podcast here on this deal. As always, this episode is brought to you by you got it 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. You’ve probably gotten some postcards in the mail from us about it. There’s a video on those postcards that you can scan with your handy dandy cell phone, smartphone or you want to call it and you’ll see me talking about it but yeah, give us a call ask for Paul. He’s very good at putting deals together and the number is here (678) 932-0200. So, give us a call. We look forward to hearing from you. Have a great day!