MHP For Sale By Owner?

Most MHP owners hire a broker to help them manage the sale of their MHP.  Frankly, that’s a pretty good idea.  However, there are situations where it might make sense to sell directly and without a broker.  Here are 5 reasons to consider selling without a broker, especially in today’s market:

  • Billions of dollars of real estate is transacted between buyer and seller each year in this country without a broker.   In other words, it’s legal, commonplace and well within the boundaries of good business practices!
  • The savings in fees for the seller (and perhaps the buyer) can be substantial:  4% of $2.5M is $100K!
  • If you have one or more interested and well-qualified buyers and you’ve reached a “meeting of the minds” on price and terms, you might be good to go.  By well-qualified, I mean they have down-payment funds in hand, good credit, industry experience and ideally, a deadline by which they need to invest.
  • Real estate attorneys (especially those experienced in mobile home parks) and title companies will facilitate the transaction and paperwork and mitigate all the usual liabilities for a nominal fee.  In fact, you’d pay most of these fees even if you were selling with a broker.
  • If you want to structure something a bit unconventional, like adding an equity partner, leasing the property with an option to purchase, a contract for sale that includes a long term (6, 12 or 18 months..,) etc., most brokers will work to dissuade you from this type of deal.

I am not recommending you sell without a broker – far from it.  However, don’t automatically assume you need a broker to complete the deal.  If you are thinking about selling, please give me a call before listing with a broker.   A 10 minute phone conversation might save you a bunch of time, aggravation and $100K!

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Emergency, What To Do?

If there is an emergency in the park and someone has been hurt or there is the potential for injury or significant loss of property, please call 911 and/or contact the local authorities including the police and fire departments.

If there is a maintenance issue that needs attention including a water leak, sewer line clog, power or gas problem, contact the on-site manager for your property (click here for a list.)

If the on-site manager is out of the park or unavailable, please contact the off-site manager, John Vashon, (925) 640-7121.

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Thinking About Selling a MHP?

We are a family business that owns and operates mobile home parks in Northern California.  We are looking for additional parks to purchase and wondered if you might be interested in selling.  What’s in it for you if you work with us?

  • You can save $10K’s in real estate commission if we complete the deal as private buyer and seller.  Alternatively, you can use a broker, I’ll represent myself and you save 50% of the commission.
  • If you plan to exchange into another property and need additional time to complete the process, no problem, we can delay the close 3, 6 or 12 months, whatever you need!
  • If you are considering seller financing (reduce tax liability and gain interest income) we are a good buyer for you!  We have 800+ credit scores, low debt, perfect references and short loan terms and balloons are OK!
  • Do you own a MHP that might be hard to sell with private utilities, deferred maintenance, regulatory violations or difficult to finance?   No problem, we know private utilities, HCD, how to work with the County and have a deep pool of lenders!
  • We take the hassle out of selling because we are experienced buyers, we come to decisions quickly and we keep it simple!

Please call us before listing with a broker!  If you’d like to know more about what we do, how we do it and the timing, see our Buying Process for additional details.

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We Take the Hassle Out of Selling!

Let’s face it, selling a MHP can be a big hassle!  Here are the top 5 ways we simplify the process and make it easy for the seller.

  1. We make decisions quickly and we keep our commitments.  This means no last-minute, left-field surprises.  If the deal is not right, we exit early.
  2. We have a well-defined due diligence process and provide one request of documents and information and one disclosure at the time we sign the sales agreement.
  3. We keep a low profile at the property and promise minimal disruption with the manager, homeowners and vendors.
  4. We “see through” deferred maintenance issues so there’s no need to invest a lot of time and energy to pretty-up the park before selling.
  5. We believe in “win-win” transactions and operate with 100% transparency in all our business dealings (we hope to buy another park from you in the future!)

We can deliver on these promises because we are experienced MHP buyers, owners and operators and we have established relationships with a long list of lenders, vendors, inspectors, etc..  If you want a hassle free sale, please call before you sign a listing agreement with a broker!

 

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Hard To Sell MHP?

Do you own one of those hard to sell MHPs?  Parks with deferred maintenance, private utilities, active tenant’s rights groups, violations from regulatory agencies or parks that lenders just don’t want to finance.  The key to selling these properties is simple: sell to an experienced buyer, like me!

  • The first park we purchased was complete with dead cars, tenants who had not paid rent in months, 2 pages of water system violations and half a dozen nasty parked owned homes, 6 months into 30 year mortgages!
  • Private utilities don’t scare us a bit.  We know how to evaluate, manage and mitigate the risk of providing these services to our tenants.
  • GSMOL, homeowner associations, tenants rights attorneys, county supervisors, I’ve engaged ’em all and survived!
  • We have experience with regulators and the legal system: 10+ HCD park inspections, $350 per day for unresolved water system violations, we’ve been sued for a tree limb that fell and landed near a tenant, we’ve had multiple small claims court cases and calls from the EPA about septic system effluent running into a stream!
  • We have a deep pool of lending sources and know how to get parks with some, most or all of these problems financed.  Success requires patience, a lot of meetings and the creatively addressing each of the issues to the lender’s satisfaction.

Nothing can be more frustrating than engaging an inexperienced buyer who  bails on the deal deep into the due diligence period.  If you have a hard to sell park and want to get it sold, call us before you sign a listing agreement with a broker!

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Considering Seller Financing?

Are you considering seller financing?  Perhaps you want to minimize the taxes from a lump sum payoff when you sell?  Or, how would you like to earn interest on a loan that is secured by a property  you know well?  Here’s why we are a great candidate for seller financing!

  • We have 800+ credit scores and a low debt to equity ratio
  • We are experienced owners and operators and know how to manage parks with private utilities, RVs, disgruntled tenants, regulatory issues, etc…
  • We are very flexible and will accept loans with short terms (to increase your monthly cash flow,) balloon payments, above average interest rates, high payoff penalties, etc…
  • We have excellent credit references from other sellers who’ve provided financing.
  • We will meet or exceed your insurance requirements to mitigate risks and ensure we can continue to make the payments in the event of a loss.
  • We will provide whatever annual financial reports you require to confirm and verify we are operating the property in sound and successful manner.

The key to success with seller financing is to select a buyer who can accommodate your terms and has the experience to perpetuate the successful management of the property over the term of the loan.  If you are considering seller financing, please give us a call before signing a listing agreement with a broker!

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We Are 1031 Exchange Friendly!

Yes, we are highly 1031 exchange friendly!  If you read our about page you know the purpose of this site and content is to support our goal of selling some of our parks and exchanging into new properties over the next few years.  If you plan to sell and complete an exchange you couldn’t pick a better buyer than us!  Let me explain why!

  • As a seller, if you need more time to find a replacement property, not a problem.  We can slide our close dates forward and backward to accommodate you.
  • We are most likely funding our down-leg with a sale and we have a well qualified list of buyers for our properties, most of whom are using unencumbered funds.
  • We always have a “plan B” alternative for the down payment and if we don’t, we will let you know.
  • We are experienced buyers and understand the 1031 exchange process inside and out including traditional and reverse exchanges, rules and timing requirements.
  • We have a good set of resources who provide us expert advice including our tax and legal adviser and intermediary who have completed 1000’s of successful exchanges.

Coordinating multiple exchanges is challenging but manageable.  The key is to choose an experienced buyer, someone who understands the process, has done the advance work and has a well defined contingency plan.  If you plan to exchange into a new property and need a buyer who can be flexible on the schedule, please contact us before signing a listing agreement with a broker!

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