New MHP Buyers: What To Look Out For In Contracts

When faced with a competitive offer, a seller is trying to get as much leverage as they can. This includes shorter due diligence time frames, less contingencies, and more. You’ll want to watch out for new MHP buyers who say they’ll give you everything you want, but then trade with them later on.

If the buyer is brand new, it’s likely that there are no reviews on them. This requires you to take a chance on their talents. It could prove beneficial, or it could be disastrous. If there is someone who’s offering you a bit less, but has a proven track record, you may want to go with them. It’s your risk to weigh.

Preliminary Considerations

If you’re considering going into the industry, you have to ask yourself a few questions. Is the best use for my land a mobile home park, or a redevelopment? If it’s a redevelopment deal, chances are a mobile home broker won’t be your best bet. You may want a local land broker who knows the market from a redevelopment standpoint. So you have to at least consider these types of options.

In truth, if it’s going to be a park, you’ll want to use an exclusive agent that specializes in the industry. This someone should have a track record and a marketing plan behind them.

FSBO Requirements

You can also FSBO it, meaning For Sale By Owner. There are many ways to be successful with a FSBO. In this case, you can still use brokers to analyze your park. You will need to build out your due diligence log, and have all documents before hand.

Having everything the buyer needs up front lets you object to due diligence requests. These can cause major delays to the process. You also want to have attorneys to ensure the proper language for your exposure is in the contract. You don’t want to have a bunch of exposure after you sell the park. You’ll want to be protected in case the new MHP buyer screws things up and in a year and tries to come back and sue you. Always use an attorney!

Accountants As A Support With New MHP Buyers

Accountants are a great resource when working with new buyers. They may not typically have a strong knowledge base of the intricacies of our industry. They often just are a good pair of second eyes to ensure all things are reconciled and make sense. They also help with pulling rent rolls and PNLs when needed.

There are also various software systems that assist with these transactions. Industry appropriate systems like Rent Manager are a great example. They help to easily pull rent rolls and PNLs.

The MHP Expert

As always, we appreciate your attention. Stick around and browse our large catalog of blogs and supports. For any further questions, head on over to our contact page. We can schedule a consultation to determine how best to advance you in the MHP field.

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