Wholesaling mobile home parks
Does anyone have any experience with wholesaling mobile home parks? If so, what was your experience like getting the park under contract and how was the negation stage?
#1 Mobile Home Park Investing Contributor
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- Ste. Genevieve, MO
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#1 Mobile Home Park Investing Contributor
- Real Estate Investor
- Ste. Genevieve, MO
Wholesaling mobile home parks is called "selling an assignment" these days. All good mobile home parks should show as buyer " XXXXX and/or assigns" which gives the buyer the ability to assign the contract to an LLC that they form for the transaction -- but it also allows you to assign to any other buyer, as well. In an assignment, the person who ties up the deal signs an agreement to sell that contract to a third party and, in so doing, receives their earnest money back and then gets paid the agreed amount at closing. The third party then does all due diligence on their own and at their own cost, gets a loan (unless it's seller carry) and then closes on the deal and pays the assignment fee. The danger is that the third party does not close. So it's vital that the person selling the assignment does diligence on the buyer to make sure that they have the funds and desire to pull the trigger.
It's also important to remember that you can't just assign any deal -- it needs to be a good deal. Solid location, infrastructure, density, and economics. When you put your assignment fee on top, it strains the existing economics, so you have to get a price lower than what it's worth to handle the fee.
Most people find assignment buyers by posting on the MHU forum and saying that they have an assignment for sale.
I've worked with wholesalers before - If you want to get into that game, #1 - know how to evaluate the deals well.
MHU is a great resource for finding out more - and I'll be posting videos this week on how to evaluate park valuations. Check out my youtube channel if you're interested (in my bio)
@Daniel Ryu A mobile home park came across my desk today. If you are interested, I can email it to you.
@Tasha McCray
Sure - you can inbox me via BP and I’ll take a look
@Daniel Ryu done
@Daniel Ryu A mobile home park in Texas came across my desk as well. Would love to have you take a look. Thanks
Quote from @Jack Vu:
@Daniel Ryu A mobile home park in Texas came across my desk as well. Would love to have you take a look. Thanks
I'll look at it.