The MHP Brokers Tips and Tricks Closing Cocktails Podcast Interview with Eric Wanck of The Mobile Home Park Broker

In this episode of The MHP Broker’s Tips and Tricks Closing Cocktails podcast, Maxwell Baker, president of The Mobile Home Park Broker, interviewed broker superstar Eric Wanck regarding a couple of his recent and very successful deals.

Here Are the Show Highlights:

-        Eric recently closed on Cozy Homes Mobile Home Park and Dogwood Estates MHP. (Max, 0:22)

-        Cozy Homes was an off-market deal on a park that Eric sold to the current sellers in 2020. They reached out to him again this year when they wished to sell. (Eric, 1:11)

-        It was a nice park, with 75 pads, city water and sewer, and paved roads. It easily met appraisal and sold in about 90 days, from initial contact to the sale date. However, the owners had managed the park from afar, installing local day-to-day management. This proved to be problematic. (Eric, 1:53)

-        The local manager did a poor job of maintaining the park, some residents left, the park lost value, and the owner had to refinance, with a balloon payment due in twelve months. That’s why they decided to sell. The lesson is that passive owners still have to check in regularly and know what’s going on with their property before it loses value. (Eric, 2:35)

-        As a result of the local management’s shortcomings, monthly park revenue had dropped from about $23,000 when Eric first sold it three years ago, to about $14,000 or $15,000 by the time it sold again. (Eric, 3:45)

-        The sellers had bought the park three years ago for $2.2 million and had to sell it for a lot less than that due to its deteriorating condition. (Eric, 4:06)

-        Despite the drop in value of the park, Eric did an excellent job on the sale and the sellers still got a premium price. (Max, 4:23)

-        Eric’s second recent success was with Dogwood Estates near Martinsville, Virginia. It was a smaller park than Cozy Homes, and also had city water and sewer, and paved roads. But its location wasn’t ideal…right next to a McDonald’s restaurant. (Eric, 6:24)

-        The lesson to be learned here is that sellers sometimes need to practice patience if the property has some challenges. It might take time, but there’s a buyer for every deal. This park had good books and records, and it easily passed the buyer’s due diligence. (Eric, 7:09)

-        The new owners ended up with a park with a ten-CAP on day one, and lots that were under market rate by about $50. Infilling opportunities also existed. (Eric, 8:01)

-        There’s a lot of opportunity out there, a big market for mobile home parks even with the high interest rates. So stay patient if you’re a seller, and The MHP Broker can help you find a buyer regardless of what challenges or obstacles your park might face. So caall us. (Eric, 9:58)

-        Some of the large banks and other lenders aren’t even interested in deals under $2.5 million or even $5 million. That’s why Max’s company has established connections with credit unions that are enthusiastic about lending for smaller deals and at more favorable interest rates than the major lenders are willing to give--if they’ll accept a deal at all. (Max, 11:07)

Regardless of the challenges and obstacles your park might face, we believe there’s a buyer for every park. Just contact Max Baker or Eric Wanck at The Mobile Home Park Broker, [phone].

Power Quotes in This Episode:

“Don’t ever think that parks are a hands-off, passive business, because they’re not.”(Eric, 2:35)

“(The closing price) wasn't close to where we sold it in the beginning. But…we still got a pretty solid price for this deal.” (Eric, 4:23)

“So if y’all have some parks out there that are mismanaged, give us a call.” (Max, 5:33)

“That's [phone] or email us at [e-mail]. Ask for Eric if you're going to call. He is the man with the plan and his pipeline is massive, still. So you guys give him a call and let's keep moving forward!” (Max, 12:45)