Best strategy for selling POH?


#1

We recently closed on a park with 15 POH of which 5 are vacant and need work. Demand is very strong in the MSA.

What is the best strategy to convert these to TOH?

Most homes can be sold for around 8-15k

We are considering handyman specials for the vacant POH, and trying the CASH program for the other homes.

Thanks in advance for any suggestions.


#2

I listed mine on Zillow and craigslist. The Zillow people seemed to be the more serious buyers.


#3

I would only clean up the vacant homes if you think they are in decent shape and sell them as is. Then I would also look at the others POH’s and see which ones you can go back to the tenants and sell to them. There are usually a few that the tenants have been in them for a few years. I usually just turn around and strike a deal with them to keep making payments for 6 mo and its yours. Its up to you, but to me POH’s are just not worth it.


#4

I would not sell homes as is as “handyman specials”. You attract the lowest quality tenants and rarely are satisfied with the end result. I put the majority of my money into the exteriors and do bare minimum to get the interior functional. Upgrading the exterior adds the most value to the community and guarantees the work gets done to my standard. The “handyman” owner can then do the interior as they please.
I sell the homes outright, buyers must find financing. I do not offer any incentives or “programs” to buyers. If they can not afford to buy they do not qualify. This insures a higher standard of resident for my community.
It all depends on the end game for your community.


#5

Greg can you share what the average sales price of your homes are? Are your homes newer models or doublewides? Do they meet lending guidelines from Vanderbilt or 21st Century? Or are your buyers going through other financial institutions like local banks or credit unions? I own several single wides that are 30-40 years old and I’m doubtful the usual suspects of lending would approve them for being financed, especially since they would not come with land…I would continue to own the park.