considering selling a park that I own preparing for semi retirement/estate planning. When you sell your property, what do you do to:1 optimize the price2 facilitate a timely sale ( I see parks on the market for years which leads me to think they are either over priced or have condition issues)3 prepare for a 1031 saleI have not been able to identify properties that I would be interested in for a 1031 sale. Do sellers ever hold out a contingency that they need to find appropriate replacement properties? I sold a park over 20 years ago, but the market is so different now
You need to raise the rent to market level, fill any vacant homes, cut any unnecessary costs, and then let those things season for about 6 to 12 months. You need to do all cosmetic repairs, such as patch and seal coat roads, paint parking stripes, go lot by lot and fix up each home’s aesthetic issues. You need to have 100% accurate, computerized financial records with rent roll and collections history. You need to have a great package on the property and an attractive price.You also need to decide on the front end if you have the time and ability to sell the property, or if you need to list it with a broker. Sometimes the broker more than pays for themselves in getting a higher price than you can. If you go with a broker, choose one that specializes in mobile home parks.Be a good listener. Listen to what the market tells you. Adjust your price to meet the market.Timing of 1031s is really hard. If you want to go that route, you may need to identify the replacement before putting your park on the market.The industry has changed a lot in 20 years. But good deals still sell and bad deals gather dust – just like they did back then.
The only problem with properties that do not sell quickly is they are overpriced. Every park has warts that simply need to be factored into a lower price.If you do not want to “fix up” the community lower the price to reflect that fact.The most important thing to remember is to be realistic. Your park is not worth as much as you think it is and buyers are all looking for the “deal”. Don’t try to hide your expenses, give the real numbers not the ones you put on your income tax forms.If you can hold the mortgage on the property yourself this will make it much more appealing for the buyer, they will often pay more if you do and you can spread the taxes over a longer time period reducing your pay out.
Timing of 1031s is really hard. If you want to go that route, you may need to identify the replacement before putting your park on the market.aion kinah / cheap aion gold