We have worked with many acquisitions of mobile home communities. All too often when a community is purchased, it will be on an as is basis. With the companies we’ve worked with, we have started doing bids for tree work for the entire park into their leverage for a better purchase price. This also should go for paving and other capital improvements that will beautify and reduce liability as a new owner.
Going into doing the bid is free (at least for us) and will ultimately increase the buying power of the purchaser.
For those of you that have bought communities, is this something that you have done during negotiations in the past? Would this be something you would be interested in doing moving forward?
If you want to pick my brain about how this could help give you a positive ROI, I would love to discuss it.
I see this done with things like paving. The paving gets done the day before closing with the expense carved out in the closing statement. It is a great way to leverage these costs, but it can be hard to explain the seller’s so I would first work to agree on a price for the park then once you have that start discussions of these improvements.
Seller doesnt need to do any improvements in this market. Its ALL negotiable. I just saw that an undesirable Park got over a dozen offers! Sold over asking the Broker says.
