How Do We Choose Buyers For Our Parks?

Just like sellers choose us, we choose buyers very carefully.  Why?  Because we want a hassle free transaction with a buyer who has the experience and resources to close and become a successful park owner.  What do we look for in a buyer, what are our buyer criteria?

  • A buyer who is sold on MHPs as an asset class they want to invest in and operate
  • Previous real estate experience, likely owned and managed a single family home, small apartment building, etc…
  • Has the means to complete the transaction including the down payment and good credit
  • A buyer who will work with us to time the close to align with our goal of finding a replacement property and completing a successful 1031 exchange
  • A risk averse buyer who values access to the property and the depth of information we will provide during the due diligence process
  • A buyer who wants property management support and assistance for the first 90 days, post sale

We hope our buyers return again in the future to purchase another park from us.  It’s an overused cliche’ but I’ll write it anyway, we work hard to ensure the deal is a true “win-win” transaction.  If you are interested in working with sellers like us and buying one of our parks, please review our Buying Process and give us a call!

 

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Why Buy A MHP From Us?

Whatever park you buy needs to be well aligned with your financial goals and buying criteria.   If our park is a strong candidate, there are several good reasons why buying from us is to your advantage, especially for the first time buyer.  Let me explain.

  • We give you complete access to the property, the books, the managers, everything you want to see or know about.
  • We will give you a long lead time before closing so you can evaluate, watch and get to know the property well in advance of making a purchase decision.
  • If you want to use a broker or attorney to help complete the transaction, at your cost, that is just fine with us.
  • We have a good due diligence checklist that you can use to evaluate the property (the more you know, the better!)
  • We have a deep pool of lenders, inspectors and vendors which you are more than welcome to leverage.
  • We can continue to manage the property  for a period of time after the close to help ensure a smooth transition.
  • We think our approach to doing business and our values differentiate us from other deals you may be considering.

At the end of the day, we want both parties to walk away feeling the both came out ahead, what’s often called a “win-win” transaction.  It’s our hope that perhaps you’ll buy another park from us in the future.  To learn more, check out our buying process!

 

 

 

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Values, What’s Important To Us?

I hesitate to make statements about values because in the end, it’s all about actions, words are cheap.  However, given the need to build trust with prospective buyers and sellers within a relatively short period of time, here goes!

  • Transparency – Simply put, the more we share and earlier in the process the better.  This allows either party to “exit” early and goes a long way toward ensuring that once the deal is done, all parties feel they’ve won!
  • Keep Commitments – I’m maniacal about keeping commitments.  From being on time for a meeting to delivering documents when and where as promised, I do what I say I’m going to do.  If something changes, I’ll de-commit and leave of time for the other party keep their commitments.
  • Make Decisions   I make decisions and take action.  There are times where both parties can agree to slow things down, that’s fine.  We should never “hide out” or stall to gain a (theoretical) advantage.
  • Win-Win –  I love repeat business!  The single most important key to “going again” is that both parties feel they gained once the deal is done, it’s a true win-win transaction!
  • Accountability – If people don’t keep their end of the bargain I let ’em know.  Either party can and should challenge the other to “step-up” and keep their commitments!

I want to do business with people whose values are aligned with my own, especially at my age.  If I sound like the kind of person you’d like to do business with, please give me a call!

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Save $10K’s in Real Estate Commission?

Can a seller really save $10K’s in real estate commission without using a broker?  Yes, absolutely!  Billions of dollars of real estate are transacted each year in our country without brokers.  It probably works best with experienced buyers and sellers, who share similar values  and where the terms of the deal are important and aligned (it’s not all about price.)  Here are a few scenarios for your consideration:

  1. Buyer and seller are introduced, they get to know one another and in the process, come to a “meeting of the minds” on price, terms and close a deal.  Commission paid, $0.
  2. Same scenario as #1 above, but the buyer brings in a broker to help complete the transaction.  Commission paid, $0.
  3. Same scenario as #1 but the seller brings in a broker to help close the deal. Commission paid, negotiable.
  4. Seller signs a listing agreement, excluding John Vashon and we later complete a deal.  Commission paid, $0, or perhaps similar to scenario #3, per the terms of the listing agreement.

In each of these scenarios above the seller saves a $10K’s in real estate commissions.  The key to success here is that you call me before signing a listing agreement with a broker!

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Are We A Broker in Disguise?

Am I really just a broker in disguise, trolling the internet and sending out cards and letters looking for listings?   No, absolutely not and let me explain why!

We are looking for properties to purchase for ourselves, for our own family portfolio.  We don’t represent other buyers or sellers for compensation of any kind including commission, referral fees, finders fees, favors, etc…  In addition, any and all information you provide will be held in confidence and will never be discussed  or shared with without your prior approval.

I am a licensed broker in the State of California and will represent myself in all buy or sell transactions.  This is to the benefit of a buyer or seller working with us – we will be held to a higher standard than a non-licensed party by the legal system.

 

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Confidentialty

Confidentiality is very important to us.  Every report, piece of data, comment or conversation you share with us will remain 100% confidential.  We will not engage with a broker, lender, vendor, tenant, on-site manager or anyone else or share any information with them about our business dealings.

If and when a time comes when some information must be shared to gain a financing pre-approval, title report, inspection or anything else essential to us doing business together, we will always ask your permission.  In return, we ask that any information we share with you and all conversations are treated are considered confidential.

If at any point in the process of working with us you’d like to sign a mutual confidentiality agreement, please just ask.

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When We Buy From You, What’s The Process?

Good question, what are the basic steps and timing if we purchase your MHP?  We keep it simple, take some time to get to know one another and then make the purchase decision in within a few days.   Here’s an outline of what you can expect:

  • Start with a phone call, you tell me about the park, your goals and why you are selling and I answer any questions you have about us.
  • We ask you to send us some info including a P&L and rent-roll and we complete a drive through of the park.
  • We write an offer and meet to review, discuss and hopefully, come to an agreement.
  • I’ll pay the deposit and we open escrow.
  • I’ll give you a list of documents and other data we need and some disclosures.
  • If we are unable to complete the due diligence within 30 days, we will do a partial release and the deposit money will become nonrefundable
  • We will engage several lenders who have already pre-qualified us buyers.
  • If funding the down-leg with a sale, we will be working with our buyer and lender (our buyer is very familiar with the property and also pre-qualified with the lender.)
  • Close will be scheduled for a date that meets the seller and buyer’s mutual needs.

Total time from signing to close could be as short as 45 days.  If buyer and seller have agreed to delay or time the close to coincide with other events, the target close date could be several months out.

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