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.
But guessing the owner’s motives is like a blind man trying to figure out an elephant by touch, and making guesses depending upon whether the blind man is touching the trunk, the leg, the tail, the ear, or the side. Really hard to get an accurate answer.
Owner’s have lots of reasons for selling:
They may be going through a bad divorce and need money.
They may want to buy a different (better) park.
They may be doing some estate planning.
They may be trying to simplify their management problems
They may be trying to avoid dealing with infrastructure problems.
They may want to retire.
Since resident groups are often the ‘buyer of last resort’ after all other sale options haven’t worked out, I try to study the real estate market to get a handle on whether other buyers can get the deal done.
However, mobilehome parks are only a very small fraction of the overall real estate market. And lately the News has been full of notices about improved financing for real estate, deals getting done, and increased activity.
Recently, some really successful real estate financing professionals discussed the “REAL” real estate market. Their take: (and I quote) “Right now, we don’t really have a real estate recovery. We have a chase after select assets in select Markets. . . [Investing now is] ‘not the smartest thing to do’ and [things] ‘could get ugly out there’ except for buyers and long-term holders of the best properties in the best locations.”
My guess is that your park would not be considered one of the ‘best properties in the best locations.’
So now continues to be the time when your group, as a buyer, should be front and center with your owner. He may ignore you, but, after his other options have failed, he might just give your group a shot.
TAKE THE SHOT, because you can do it.
Deane
Deane Sargent and PMC Financial Services have been helping mobile home park resident groups and cooperatives to organize and find financing to buy their parks for over 20 years.