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 an unusually easy sale in North Carolina.
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:
- If there was anything “unusual” about this transaction in North Carolina, it’s how smoothly it went. Anyone who’s been in mobile home sales, whether as a buyer, a seller or a broker knows that’s not usually the case. For starters, the park was only on the market for 30 to 45 days before it went under contract. The seller had good books and complete records, which moved things along. Also, the park only contained park-owned homes, and they were 100 percent occupied. And all of the homes were titled, so there was no chasing down missing titles. They also had a great location in NC, a desirable place to be. (Eric, 01:17)
- Another thing that made the transaction quicker and easier than usual was the fact that the buyer was dealing with a lender he’d done business with before, so the lender knew his credit history and the business he was in. They already had a good business relationship. And the buyer owned a small portfolio of mobile home parks, so he knew how to conduct due diligence and get a transaction done. Now the only potential obstacle was the appraisal. (Eric, 2:18)
- The appraisal went just as smoothly as the rest of the deal. No surprises whatsoever. (Eric, 2:46)
- Max noted the ability to sell your park even if you don’t have good books and records, but it’s easier on everyone (and faster!) if you keep good records. And it will help you get the best price possible. (Max, 3:35)
- Easy sale, or challenges every step of the way. Whatever obstacles we find in front of us, we can get past it and get you a good and clean sale at the best possible price. Call Eric Wanck or Max Baker at The MHP Broker, (678) 932-0200 and we’ll help you find a qualified buyer and an optimal sale price.You can also drop us a line at info@themhpbroker.com.
Power Quotes in This Episode:
“Thankfully we had no issues whatsoever. So, it tells me that we got a good contract, we priced it right, and as I said, this one was a really smooth little deal. We got it closed on time, no extensions.” (Eric, 2:46)
“That’s rare. It’s like a unicorn!” (Max, 3:01)
“ We can still sell the community for you (if you don’t have good records), but there’s just so many more options for you as a seller if you have clean books and records, because you want to be easy to buy from. If you’re hard to buy from, the price is gonna suffer. If you’re easy to buy from, you’re gonna get the highest price you can get.” (Max, 3:35)
00:00
Hello and welcome to the Mobile Home Park Broker’s 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 is your host, Maxwell Baker.
0:22 Maxwell Baker
Hey y’all, welcome to another beautiful episode of the Mobile Home Park Brokers’ tips and tricks podcast. As always, this episode is brought to you by the, you guessed it, Community Price Maximizer. It is here to guarantee you the highest price when you exclusively list with us. Give us a call (678) 932-0200 or email us at info@themhpbroker.com and as always, it is always great to have another beautiful closing cocktail with our rock star, Eric Wank. Welcome to the show, buddy!
0:58 Eric Wanck
Thank you! Thank you!
00:59 Maxwell Baker
This one’s Friendship Cross, man.
01:01 Eric Wanck
Yes
01:02 Maxwell Baker
I will just let you enlighten the entire audience here about this deal, how it came across, who was the buyer, the profile of the buyer I should say (laughs) and how it got financed. So, ready to say go, man.
01:17 Eric Wanck
Yeah, no, this was a smooth deal in the MH world. When we have these, you gotta be thankful for them. If you’ve ever been in the MH business, either buy or sell or broker, you know that they’re not always so smooth. There’s a lot of variables in transacting mobile home parks. I’m just very thankful that this one was smooth as I think you could be from A to Z. We ended up having it on the market probably 30 to 45 days when we put it under contract. Big lesson on this one was that the seller had good books and records. It was all POH too. So, all park on homes, 100% occupied, good little MSA in North Carolina. When you have good books and records, it lessens the risk for the buyer. They know what they’re getting themselves into. They can conduct thorough due diligence. All the titles were on the home, so we’re not trying to find missing titles.
02:17 Maxwell Baker
Nice!
02:18 Eric Wanck
Another thing with all POH communities, this was financed through a bank that the buyer had an existing relationship with, small profile on him as he was an existing smaller portfolio owner, had some other parks, but by no means a large operator or group, and they were able to get bank financing and, and of course the third party on that is the appraisal. That always seems to be the hold your breath…
02:46 Maxwell Baker
Yeah
02:46 Eric Wanck
…what are we gonna get? and thankfully we had no issues whatsoever. So, it tells me that we got a good contract, we priced it right, and as I said, this one was a really smooth little deal. We got it closed on time, no extensions.
03:01 Maxwell Baker
That’s rare, it’s like a unicorn!
03:03 Eric Wanck
I know, I know!
03:03 Maxwell Baker
(Laughs)
03:04 Eric Wanck
So of course, a very happy seller at the end of the day that we were able to make it so efficient for him. I guess the lessons on it, as I mentioned, North Carolina just being a great state in general. So, if you’re a seller out there listening to this and you want off on your park, just let us do a BOV. Let us tell you what it’s worth. If that number kind of makes you sit up a little bit straighter in your seat, we’re happy to see what we can do for you and of course, having good books and records…
03:31 Maxwell Baker
…always helps.
03:32 Eric Wanck
Yeah, it always helps, always, always helps.
03:35 Maxwell Baker
Gives you the biggest price jump that, you know, if you have no books and records, obviously. We can still sell the community for you, but there’s just so many more options for you as a seller if you have clean books and records, because you want to be easy to buy from. If you’re hard to buy from, the price is gonna suffer. If you’re easy to buy from, you’re gonna get the highest price you can get. That’s why we have this whole community price maximizer. We get in there, we look at your books, tell you what you need to do, start recording all of your income and expenses. At least the moons in line at minimum 6 months, I’ve seen 3, but realistically 6 is what we can sometimes use to get the bank to be OK, but Eric, congrats again, buddy. I know, these are, these unicorn deals that close on time, better yet, close on time with a reputable buyer’s very rare.
04:27 Eric Wanck
Yeah, yeah, as I said, it’s, without having too many major speed bumps throughout the process and to get it closed, you know, that was, that was great because we’ve seen it all, not to say that we’ve, we’ve seen everything, but, being in this business long enough, especially yourself, Max, we know how to get through those hurdles, when they pop up, but again, there’s a lot of variables that go into selling mobile home parks and, you know; we know how to navigate that.
04:55 Maxwell Baker
For sure, man, it’s always. It’s never a dull moment in the brokerage industry for Mobile Home Parks. Well, cool, man. Well, I appreciate your time here. Any closing comments before we sign off?
05:06 Eric Wanck
No, I think I pretty much hit them. Again, if you’re in, if you’re in and around South Carolina, we know a lot of folks that are out there actively looking to buy in those two states. They can put together a pretty strong offer. Even the buyer on this one is, is still looking for more, so love to do business with you.
05:25 Maxwell Baker
Yeah and as always, y’all, give us a call (678) 932-0200 or email us at info@themhpbroker.com and as always, this episode is always and forever brought to you by the Community Price Maximizer is that that little thing that we just talked about how we can improve the value of your park, guaranteed, when you exclusively list with us. So, give us a call, love to chat with you, and as always, let’s keep moving forward!
