Commercial Brokers - To use or not to use


#1

Hey,

I am looking to sale a mobile home park in the midwest. Sale price around 1.5 Million. The MHP is located in a city that has population of 40K and it is 45 Minutes from a population of 400K. Any thoughts and/or experiences on using a commercial broker or selling myself.


#2

Just depends if you want the pain of the ass to deal with a large number of dead beat tire kickers trying to get info about your park and have no intention or money to buy it. Or you want the broker to deal with it. It’s a 3%-4% hit usually and a good broker is well worth it.


#3

You may want to consider working with Broker/consultants who are paid by the buyer, and who understand the buyer’s investment criteria. It doesn’t tie you up from selling it yourself, and it doesn’t cost you a penny in commissions.


#4

I’d be happy to discuss your park and explain the value a broker can add to the sale. This year i have sold over 33 parks, and most were record breakers. Call me anytime. Glenn Esterson 423-483-0492 Gesterson@themhpbroker.com


#5

I’m actively looking full-time for a park to buy like yours… I just sold my park in the midwest and would love to discuss.

To answer your question, if you have the time I would recommend doing it yourself. The broker will likely put together a nice looking offering package to present to the buyer. They will also screen they buyer for you among other things. You can easily put together all the info required for the sale yourself (p&l for the last three years, copies of bills, bank statements, etc.) and send the data to prospective buyers yourself.


#6

In most cases you will maximize your profits with a broker. There are big groups out there that will over pay but only through a broker. I know an amazing one if you want to talk to someone.

Get me your contact information and I’ll have him reach out to you.

Jim


#7

Exposure may be the biggest reason. I bring about 8500 buyers with me to my listings. From the local first time buyer to publicly traded companies. The goal is create a competitive environment by generating multiple offers in the first 2 weeks of marketing. I tend to bring 3-7 offers right out the gate on a typical deal. Some deals I have brought over 15 offers on in the first 5 days. I have about an 80% closing success rate on my listed deals. We want to target what we refer to as the black swan, that one buyer who will stretch because he is from out of state, in a 1031 and has a specific reason to be at that property. This isn’t something that most owners have access to, so they end up working in a vacuum with a poorly vetted buyer getting re-traded after wasting 90 days or more.

Vetting buyer is another strong reason. We keep charts on all buyer we’ve worked with and know who is going to waste your time and who will close.

Price – I always pay for myself. My buyers stretch further than buyers you will find on craigslist, MHP store, LoopNet etc. My track records testifies to that.

Headache – For the reasons above and the fact that no MHP deal is “easy”. They are all a pain in the butt and always have complications. We can avoid a lot of them upfront through proper management of the deal and avoiding surprises that kill deals.

Give me a call to discuss further. My cell is the best number. Call anytime.

PS – Email me directly for a list of the 35± parks I am selling. To date in 2018, I have sold 36 parks. Not too many brokers can say that. Take a look so you can get an idea of what I bring to the table.

Glenn Esterson

Senior Director

The MHP Broker

O: 678-932-0200

F: 1-866-366-8176

C: 423-483-0492

Gesterson@themhpbroker.com


#8

@sullivanrealestateinvestments expect to get a ton of private messages now asking about your park from people that will never respond/have any real ability to purchase your park. I suggest forwarding those messages to a dropbox with your park info if you do choose to sell yourself. Or forward to your broker because if you do use a broker, that’s the kind of garbage they get paid to deal with.

@WhiteTrashGator can you refer me to some brokers that only charge 3-4% commission please? I know for the really large parks I’ve seen those numbers but for parks under 1 million I haven’t seen anyone quote 3-4% commission. PM me if you don’t want to share publicly. Thank you!


#9

I couldn’t tell you if that is the going rate for everyone or everything. I could only tell you that based on what I have, the contract stated that the seller would pay the fee and it was between 3%-4% all of them. The brokers have been people that I see in MHP store all the time. So they are not a secret. Now all of my parks have been close to $1M so maybe there is a higher rate threshold I have not experienced.


#10

Got it. Thank you. Could have been the market conditions when you were selling too I suppose.


#11

I was not selling, I was buying. I bought 2 parks this year and both the seller paid 3% to the broker. Again established brokers who have deals on MHP store right now.


#12

I would check out Marcus & Millichap. They have a great mobile home team that has access to buyers across product types and I have worked with them in the past. Shoot me an email we can talk more about it. bradleyrillo@gmail.com