How to Buy a GooD Mobile Home Park
The process of actually purchasing a Mobile Home Park is a very exacting science. Like any real estate investment, one must know what to look for and what to look out for.
We at CCI Real Estate bring years of experience with Mobile Home Parks to the table, not just as Real Estate Brokers who sell them, and as Property Managers who manage over 35 Mobile Home Parks nationwide, but also as owners/investors who own several Mobile Home Parks ourselves. We employ this wealth of experience to help our clients get great deals on great Mobile Home Parks, and to protect them from problems wherever possible.
The process of purchasing a Mobile Home Park (MHP) through CCI Real Estate is as follows:
- We locate a MHP that fits your criteria. (Size, Location, Condition, Income, Cap Rate, Upside, etc.)
- We gather & review all relevant data. (Income & Expenses, Rent Roll, Physical Inspection, etc.)
- We draft an Offer that fits your wants & needs. (Price, Terms, Escrow Period, etc.)
- We present your Offer to the Seller & attempt to get it Accepted or Countered.
- Once both sides come to an Agreement, we open Escrow (if not, we walk away, at no cost to you).
- You place an earnest money Deposit in Escrow. Whatever financing is being used is arranged.
- We begin our Due Diligence (in which we check every last detail of the park, books, etc.)
- If after 30 days Due Diligence you find you don’t want to proceed, you back out at no cost to you.
- If you elect to proceed after Due Diligence, we commence closing the escrow.
- Approx. 1 week before Close of Escrow (COE) you Sign Off all documents at the Title Co.
- At that time, you place the balance of your Down Payment in escrow (certified funds only).
- The Title Co. records your new Deed with the County Recorder & we close Escrow.
- You now own the Property & hopefully you made the wise decision of having us Manage it for you.
- We calculate all prorations back & forth between Buyer & Seller, settling all accounts.
- We proceed to Manage your MHP, and you start making money!
NOTES:
- Most Escrows run 45 to 90 days. Sales that involve bank financing can take up to 120 days or more. Cash sales or sales with seller financing can close in as little as 7-10 days. The escrow period is negotiated and must be agreed upon by both Buyer & Seller.
- The contingency period for Due Diligence is usually 30 days & usually commences upon receipt of all the basic information from the Seller, but can commence at the time the Offer is Accepted, if those are the terms that are agreed to by both parties.
- Anything and everything, as long as it’s legal, moral & ethical, can be negotiated & included in the Purchase Contract. Both parties must agree, and all agreements, amendments, additions and/or addenda MUST BE IN WRITING.
- Today’s standard Purchase Agreement (in California, for instance) is now up to 10 pages, plus supporting documents. With Counter Offers, Counters-to-the-Counter, Addenda, Disclosures and other documents, it’s not uncommon to have a contract package with 25 pages in it. They were written by the best legal minds in the business, and have been proven in court. Without an experienced, professional realtor, specializing in Mobile Home Parks and other Commercial Real Estate, it’s very easy to miss many vital details that can cost you money or worse. Many buyers try to write their own contracts, and this can spell tragedy if things don’t go well. You need professional representation.
- Here’s the best part: As the Buyer, you get all that professional service from your Realtor, but you don’t have to pay a dime for it! In most cases, the Seller pays all the real estate commissions. So, you get a free ride going in. You’ll end up paying when you sell it, but then it will have (presumably) gone up in value considerably, so you won’t mind.
- So, by calling CCI Real Estate, you are getting the best, most professional, most experienced and specialized representation that you can find (when investing in MHPs), and you won’t even have to pay for it!
Call CCI REAL ESTATE Today!
(209) 845-3860