-
Turnkey buyers pay premium prices—but only for premium, low-hassle properties. (01:24)
-
Retirees love lifestyle plays with upside in warm, peaceful climates. (01:37)
-
Value-add buyers are everywhere, but they’ll nitpick and grind. Be ready. (01:51)
-
First-time buyers come with enthusiasm, but sometimes lack funding. (03:32)
-
Scam artists? Max keeps a list. You don’t want to be on the wrong end of one of these deals. (04:04)
Power Quotes-
“We label them as Scam Artists in our actual database. Every industry has them.” (04:15)
-
“We know how to spot the tire-kickers and time vampires—so you don’t have to.” (04:36)
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 eeeepic episode of The Mobile Home Park Brokers Tips and Tricks Podcast. I am your host, Maxwell Baker, yours truly, CEO at the firm. Today we’re going to be talking about your seller’s guide. So, this book is what I wrote a little while ago, for all y’all sellers, all you sellers, depending on where you’re from, as I’m going to say it, all you guys and girls out there that are sellers of mobile home communities. Today, we’re going to be going over that book. So, I’m going to be doing a little bit of a summary, but also be reading directly from the book.
01:05
Chapter Five. What types of buyers will my park attract? Nearly everyone falls into one or more of these five categories we’ve identified as brokers, and the last one is the one you want to avoid like the plague. So, the first type of buyer we have is the Turnkey Buyers. Everyone loves these types of people. They pay market pricing. They love high occupancy deals, in-place management and excellent books and records. Next one we have is Retirees. These buyers are looking for a lifestyle change. They like deals, typically with a little bit of upside. They pay their fair market value, and they pursue communities in nicer areas of the country. The Value-add Buyers. We work with many value-add buyers because quite honestly, all of the communities that I’ve seen in secondary and tertiary markets typically need some advances into the real world of what technology and skill set to modernize how it’s operated, as well as, like I said, tech. So, there’s a lot of those deals out there still in this day and age, a lot of value add in this industry and those markets. There’s some in primary markets, but typically, the primary markets attracts the institutional operators, and they typically got their crap together simply because they’ve got a bunch of money behind them, and that money wants a guaranteed return, or try to get a close to guarantee return, and with that requires very efficient operating and when you’ve got something in a primary market, typically the occupancy level is very high organically, and don’t require as much. So those are going be trading at a pretty fair price when you go to sell them with us, but going back to the Value-add Buyers, we work with a lot of Value-add Buyers, because a lot of mobile communities need major rehab. Just like I said, sometimes these buyers are time vampires, what I like to call them, because they suck the time out of you. But most are pretty serious. It’s all about doing excellent upfront due diligence on your community. So, we can point out all the variables that Park has. We can then focus your expectations on what are going to be some major negotiating points they’ll bring up and help you navigate what is fair for the given situation.
03:30
Next type of buyer we have are First-time Buyers. Not all First-time Buyers will be the same. Our industry has a saying. As the market heats up, so do the number of First-time Buyers. They go to guru seminars and usually look for no money down deals or owner financing because they lack funds. They use brokers to help manage them because they’re trying to operate it from afar and we sell a lot of communities to First-time Buyers, and we know how to manage them and get them to close on your deal.
04:01
The last one we have are the Scam Artists, people that are literally just bad people morally and don’t really care about anybody but themselves. We do come across bad eggs every once in a while, we label them as Scam Artists in our actual database. We all know that every industry has them. These people do things like re-trade deals for no reason right before closing, never deposit Earnest Money, make big promises with no intention of delivering. We have a growing list of buyers, and I’ve been through the ringers so many times. We know how to spot them from a mile away. They all say the same thing. They just about do the same thing, and always cause you and your family heartache. So, I think it’s good for you to hire us so you can avoid them because selling a park is difficult. There’s a lot of variables. There’s a lot of things that you don’t know, that you don’t know, and you’ve got on top of that these slick profile individuals that will re-trade you, give you heartache and ultimately make it very difficult to sell your community on your own. That’s why you hire a broker, because we see these types of people, and we know how to spot them by the questions we ask. We flush them out before they even get to the table to start making offers. So, circling back with these types of 5 Buyers, you can cater your mobile home park to the category you want to deal with when you hire our firm to be your exclusive agent and represent you, we will evaluate your community and identify everything each category of buyer will have issues with whichever category matches the condition of community best, we’ll tailor our marketing to reach them and help boost the probability of you getting the highest price possible. Bottom line, it’s crucial that you understand how to market these different types of buyers with the different types of communities out there depending on what you’re trying to sell. If you contact us, we know how to position your community to get the highest price possible.
