Welcome to the latest episode of the Mobile Home Park Expert podcast! Jason and Glenn are back to discuss the latest news and trends in the industry. Today’s subject: selling a mobile home park. Read on for some great tips on the subject.
The pair uses one of Jason’s first prospects to highlight the topic. “It was a really interesting property. We were almost there,” he asserts. This sparked the idea of sharing the deal’s details on the podcast. They break down the location, and what likely would have happened if the deal went through.
The park in question was an “RV park that had some permanent tenants.” It was an attractive deal according to Glenn and Jason. It was an 80-spaced waterfront park that had expansion potential. The inhabitants rented there yearly, but weren’t present in the parks year round.
“There was no amenities, and it was a no frills thing,” Glenn admits. “But the location was fabulous.” The parties appeared to find the rate agreeable as well. The location kept satisfactory books, and had attractive cashflow. The pair saw a chance to put a creative deal in play. There was even discussion of putting the option
But, as good as it looked, it was anything but a simple sell. That’s because the cashflow, though attractive, was less than projected. That’s because “it was underperforming because of the operator”. The property didn’t even have a website. Still, the location had some attractive qualities.
The area was “a family campground for fisherman. It had a beautiful house right on the water. It had a 300ft pier, boat docks, a boat ramp,” and more notes Glenn. There was even discussion of building more fun and nifty attractions to spruce it up. It’s worthy to note though that there’s little invested in marketing in this space. Still, a resort style attraction could have been a solid attention grabber.
“One of the first steps of doing a deal is finding a deal,” says Glenn. That’s what made the referenced deal so special to the pair. It pretty much just materialized. They zeroed in on the pros and cons of the deal, and did a thorough review of the books.
The park had only been in the current owner’s possession for the better part of a year and a half. Though it wasn’t quite performing to spec, it was still seeing gradual success. One of the chief concerns, however, was financing. There was no plan to pay out of pocket. “I must’ve called 50 different banks to get a loan on this thing. A local bank actually came up with the most attractive deal,” says Glenn. To hear more about this experience, listen to the above clip!
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