If you’ve been trying to sell your mobile home park but cannot, there are several possibilities as to why this is happening. In this post, we will explore the forces that are restraining owners of mobile home parks from successfully selling their mobile home park property.
Let us start here. How many times have you gotten close to the ‘finish line’ (closing) only to have your buyer back out or not be able to deliver payment?
This happens all too often to owners trying to sell their mobile home park or community. But how can you vet buyers? There are several ways; look at their website, see what their social media presence looks like, and give them a call to discuss your park.
Lack of Documents
Documents, or ‘docs’, are the story of your mobile home park. These documents include vital details about your park. Not having them available can be a turn off to potential buyers. Some examples are:
- Operating License
- City Approval Letter
- State Approval Letter
- Titles for Trailers
- Rent Roll
- Survey Report
- Lot Drawings
- Water Bills
- Property Taxes
- Insurance and Renewal Documents
- P & L (Profit and Loss)
A Profit and Loss document is often the most requested by buyers of mobile home parks. They want to understand what they are purchasing from a financial perspective. Some of the components of a Profit and Loss statement include Expense & Capital costs, Utility costs, Rent Increases, Contractor Costs and Miscellaneous costs.
The better the package you can prepare in advance of your sale, the more it will help buyers when it comes to purchasing your property.