The start of the pandemic brought major concerns, and rightfully so. These went beyond the realm of mobile home park contracts. There was a lot of uncertainty surrounding all aspects of life. For the first time in recent years, a collective shock brought the world together in common alarm. It remained to be seen how the world would adjust.
While we still aren’t in the clear, there have been positive developments in our field. “Deals have been closing left and right,” say Glenn. He and Jason joined to discuss the mobile home park sector’s big growth. Rent collections have sustained in the wake of shut downs. Glenn’s teammate, Brandon Pearson, joins to discuss his record setting deal closings. More on that and the field’s explosive growth below.
Record setting deal closings
The pandemic was not without its struggles. Brandon mentions having to work through several obstacles to bounce back in full. Still, his buyers stayed committed, and the deals got finalized. Also, Class A assets still command many interests. Glenn says in one instance, “Brandon was able to to get a mom and pop top dollar, and got the client a hell of a deal.”
Brandon wagered that the low forecast and sturdy rate were a fair trade for the upside. Utility bill receipt, low rent, and more made many interests “able to make sense of it.” The consistent workflow and projected success brought key deals to a close. This joins the rest of the team’s closings, with six scheduled for June alone.
Brandon recalls the ordeal taking three calls to complete. While the scope of the deal was commendable, the benefits go beyond monetary. “I think it’s going to work out for the buyer, and that’s my main concern. As long as they’re happy about it, I can pretty much celebrate.”
How have deals changed since the pandemic?
While there’s been cause for celebration, that doesn’t mean there aren’t further considerations. There have been marked changes to typical industry proceedings since the pandemic. “There’s definitely been a shift,” says Glen. Buyers in the below million dollar range are having the most difficult go. “Banking became harder than it already was… They’re not doing any CNBS loans.”
Now, a mobile home park contracts valuation will have to come in the form of a Fannie loan, community bank loan, or cash. Delays caused by massive backlogs make community banking more trouble than it’s worth. A friend of Glen’s reports receiving a historic Fannie loan. Listen to the audio track to hear Glenn break down the exceptional loan terms.
The Mobile home park market in Colorado Springs
Brandon went on to discuss a couple of deals he has in Colorado. In CO. Springs, he’s currently working on a “$3.7million, 55-lot park… It’s low in rent. There’s even an opportunity to do a utility bill back,” he maintains. Glenn adds that “it’s a mom and pop park with value add.”
Likewise, his Englewood, CO property is pegged as a future land development of some sort. “20 lots, 1.7million… It’s price heavy, but the location couldn’t be better.” It’s centralized location in relation to Denver makes it an attractive listing. Both properties are tenant owned.
The mobile home park industry is booming. There’s never been a better time to join, and we have the information to help you navigate. If you’re looking for a strong partner to guide you to results, contact The Mobile Home Park Expert today!
Hello, and welcome to the mobile home park expert podcast. I’m Jason Sirotin, joined as always by Glenn Esterson Glenn, how are you?
I’m doing wonderful, my man.