Helping Mobilehome Park Residents Become Park Owners
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.
On the one hand, since ‘getting the owner to the negotiating table’ is probably the most difficult task in a resident park purchase, the idea that an owner would contact me about selling his park to the group is really exciting.
Read and learn. And then prepare your group for buying the park them selves. Otherwise, you will be paying some one else to make HIS investment a REALLY GREAT one.
Residents might think that the sky is falling and a new owner will result in higher site rents and negative management consequences.
Resident mobile home park purchase transactions (“the Deals”) have several general characteristics:
I’m headed out on the road to California, and I always look forward to these trips because I get to do a lot of stuff that I REALLY enjoy.
In keeping with my series on “Why Resident Groups Should Continue To Try To Buy Their Park, Despite the Stuff They See In the News”, I recently got an End of Year email from a Real Estate Broker who deals in mobilehome parks that highlights the opportunity.
Resident groups trying to buy their park are often trying to guess the motives of their park owner to determine the likelihood that he will sell the park and, in fact, sell it to the group.
Occasionally, I come across an article I think might be of interest to folks who read this Blog, usually with a view toward buying their park. The article below highlights why one MHP Business model is FAILING. And that might represent OPPORTUNITY for your and your neighbors who want to buy their park.
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)