Sunnyvale Torpedos Mobile Home Park
It takes a lot of effort, leadership, group support, time, and expectations for MH resident groups to buy their park. There is usually a lot of stress leading up to the closing of the purchase.
And then, all at once, they close the deal and that stress is released. It’s over! We’ve done it!
I get many of calls from resident groups seeking to purchase their mobile home park.
They all want to know what it takes to buy it, how they can go about it, what will it cost, how long will it take, and, bottom line, do I think their park could do it?
Many of you may remember the old story (a science class experiment maybe?) about the frog in the pot on the stove.
If you put a frog in a pot and slowly turn up the heat, the frog won’t notice and you will end up with frog legs (if you like that sort of menu item) for dinner.
The fears of Buena Vista Mobile Home Park residents, who could be displaced to make room for luxury apartments, aren’t theirs alone. In many parks, residents, who often own their homes but not the land under them, are treated as second-class citizens.
Failure is frustrating. I suppose, however, it depends upon your definition of failure. I’m in the Mobile Home Park Resident Purchase Business, and, defined broadly, we have a ton of failures. It takes three basic factors for resident park purchases to be successful – to close with the resident group as the new owner.
Resident mobile home park purchase transactions (“the Deals”) have several general characteristics:
The following are excerpts from a talk given by Deane Sargent, from PMC Financial Services, at the November 20, 2012 HOA meeting. The excerpts were transcribed by Bill Schlegel (HOA President)
I have been really busy closing a resident park purchase transaction. Such transactions not only take a lot of time, they are also very important since it might be the only time the group gets the opportunity to acquire their park.
There is a small (50 or so homesites) low-income park in suburban San Diego, California. The resident group purchased the park about 10 years ago using a commercial real estate loan, a second mortgage loan from the local municipal government and some resident equity. The resident group operated the park, more or less successfully, for … Read more