In this episode of The MHP Broker’s Tips and Tricks podcast Closing Cocktail, Maxwell Baker, president of The Mobile Home Park Broker, interviewed his brokers Eric Wanck and Jeff Dodge, the team that worked together to close a particularly tricky recent transaction.
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:
- Jeff and Eric worked together to successfully close a park with plenty of challenges, from the condition of the park-owned homes to the disinterest of lenders. A lotta drama, but they got it done. (Max, 0:22)
- It was a multi-parcel community that had been bron up some through previous land sales. The park mostly had park-owned homes, which can present problems finding financing. There was county water and sewer, which is advantageous, and the books and records were clean and complete. But the buyers had to apply to multiple lenders before finding a hard money source. (Eric, 1:13)
- The buyer got turned down by about a half dozen lenders before finding their hard money resource. (Eric, 2:11)
- There was some value-add to the park in terms of the new buyer being able to raise rents and bring in new homes, so it was advantageous for the buyer to go through all of the hassles of finding a lender. (Eric, 2:13)
- The buyer was visionary and saw the park’s long-term potential. He knew he could quickly add value by bringing in new homes and fixing up some of the existing inventory. (Jeff, 3:04)
- The market is healthy and vibrant right now. Parks are moving, and the MHP Broker teams was able to close this sale to everyone’s satisfaction despite the challenges. They can do the same for you. (Jeff, 5:24)
Regardless of the particular challenges that your mobile home park or RV community present, you can trust The MHP Broker to find a way to get to a successful close. Call Eric Wanck, Jeff Dodge or Max Baker at The MHP Broker, (678) 932-0200. Or drop us a line at info@themhpbroker.com.
Power Quotes in This Episode:
“This was more difficult than we envisioned from the start…That’s what we do. We never take no for an answer. Long story short, we went through multiple lenders to…eventually find some hard money lenders.” (Eric, 1:13)
“So yeah, we got it done. THe buyers actually had a good source of hard money. There was some value-add, they’re going to bring in some new homes, so it all seemed to work out at the end of the day to get it done.” (Eric, 2:13)
“They were mostly older homes and needed some work, but the buyer saw, you know, great opportunity with this park, going to bring in some new homes, raise the rent. So, they really saw the vision and stuck with it.” (Jeff, 3:04)
“Yeah, so this deal, like I said, was not an easy deal to get funded. We had multiple community banks sniff their nose at it but our team was bold, determined, and consistent. So, that kind of behavior is what you expect that you will receive here at The Mobile Home Park Broker when you give us the listing on your community, RV or mobile home park, or even in this case, it was a land-home package neighborhood.” (Max, 3:21)
“We’re not those white glove brokers that only work on white glove deals…we get dirty, we know how to sell the ugly stuff. But don’t get me wrong, we will do the white glove stuff (too).” (Max, 3:58)
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.
00:22 Maxwell Baker
Hey y’all, welcome to another beautiful episode of the Mobile Home Broker’s Tips and Tricks podcast. It is a beautiful day in Atlanta, GA ATL shout it! We’re excited because we got a closing cocktail. Two of our all-star agents, Jeff and Eric, are here joining us to talk about this mobile home park that was pretty difficult to sell. They did all they could do and they had a bunch of drama back and forth with the debt. We had some debt alley-oop for it, but it didn’t work out. It’s just, it was a tough deal, but I won’t steal the show from them. They’re the one that closed the deal. They’re the one that made it happen. So guys, welcome to the show and congrats on closing this nice deal!
1:07 Eric Wanck
Thank you, thank you.
01:08 Jeff Dodge
Thanks, Max.
01:10 Maxwell Baker
Yeah, so, who wants to go first on talking about it?
01:13 Eric Wanck
I’ll go first. Yeah, sure. So yeah, going kind of alluding what you’re talking to there. This was more difficult than I guess we envisioned from the start. It was a multi-parcel community that was kind of broken up. You know, we did have the county water; on septic; Everything was good there, but it was heavy POH. I think there’s only a couple tenant owned homes in there and anytime you see heavy POH, you always know that could be a little bit difficult on the financing. We had pretty good books and records on this, great client that we were working with on the sell side and we did everything that we could. That’s what we do. We never kind of take no for an answer. Long story short, we went through multiple lenders. To eventually find sort of some hard money lenders…
02:04 Maxwell Baker
Oh my god! How many lenders? (laughs)
02:06 Eric Wanck
Yeah it was oh my word, it was like 5 or 10
02:10 Maxwell Baker
5 or 10? who knows (laughs)
02:11 Eric Wanck
5 or 6 different lenders looked at it,
02:12 Maxwell Baker
That’s crazy!
02:13 Eric Wanck
So yeah, we, we got it done. The buyers actually had some good source on hard money. They were able to get it closed. Granted they have an exit strategy and the business plan worked where they could do hard money. There was some value add, they’re gonna bring in some homes, so it all seemed to work out at the end of the day to get it done.
02:34 Maxwell Baker
This deal was like piecemeal together, right? It was kind of like a land home packaged neighborhood.
02:39 Eric Wanck
Yeah, that’s right. So I mean by multiple parcels; like if you were looking at it on an aerial, it looked as if it was one big park back in the day and then they just started cutting it up. So some of the homes that were sitting next to what appeared to be the same parcel and same mobile home park were not. So that was, it was definitely a little bit of a challenge for us.
03:01 Maxwell Baker
Got you, man. Jeff, you got any other comments on that?
03:04 Jeff Dodge
Well, just, just, just one. Eric covered most of it, but I’ll just say, just to echo a little bit what he said. They were mostly older homes and needed some work, but the buyer saw, you know, great opportunity with this park, going to bring in some new homes, raise the rent. So, they really saw the vision and stuck with it.
03:21 Maxwell Baker
Yeah, so this deal, like I said, was not an easy deal to get funded. We had multiple community banks sniff their nose at it but our team was bold, determined, and consistent. So, that kind of behavior is what you expect that you will receive here at The Mobile Home Park Broker when you give us the listing on your community, RV or Mobile Home Park, or even in this case, it was a land home package neighborhood. We’ve seen it all when it comes to the ins and outs and jumping and jiving because some of these deals are very complicated, but at the end of the day, we get deals done.
03:58
We’re not those white glove brokers that only work on white glove deals, like we get dirty, we know how to sell the ugly stuff, but don’t get me wrong, we will do the white glove stuff. I don’t want to shy away from that. I should digress, you know, if you wanna send us some white gloves, who else is gonna have the amount of experience in the market that the MHP broker has? We’ve got years and years of just dealing with a lot of different types of scenarios and mobile home parks. So if you’ve got a white glove, would you much have the broker that has the excellent customer service and is scrappy as all get out and can make deals happen and get it across the finish line? Or do you just want a broker that comes in? Signs a paper and just waits for offers to come, doesn’t even check if whether or not the buyer’s earnest money has been deposited. Trust me, I have seen other brokers do that. So, we have a system, a method, and process.
04:56
So if you’ve got a Mobile Home Park, an RV park, any kind of Mobile Home related business, give us a shout. Love to show you what we can do for you, line you up for success, and as always, Guarantee the highest price you can get with our Community Price Maximizer system. Give us a call (678) 932-0200. Guys, do you have any closing comments before we sign off?
05:23 Eric Wanck
You said it well, sir.
05:24 Jeff Dodge
I’ll just say real quick, Max, you know, so once again able to get to the finish line, and we’re seeing a lot of activity out in the market currently. So, just give us the opportunity to work with you and we’ll find the right buyer for your property.
05:35 Maxwell Baker
Thank you, Jeff. He is absolutely correct. Call us. Again that number (678) 932-0200 or email us at info@theMHPBroker.com and as always, thanks for listening and let’s keep moving forward!
