Mobile Home Parks 101.ORG
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Learn more about Mobile Home Parks for sale.
The number of pads is really only an important factor when it comes to selling. The more pads you have the easier it is to sell in most cases and this is simply due to the fact that there are (x) amount of buyers for a little 9 site mobile home park for sale in Michigan where there a (x) many more buyers for a 90 site mobile home park for sale in Michigan or for any other state for that matter. the reason is simple. the larger the park the more sophisticated the buyer. The sophisticated buyers understand these investments quite well. They have done well with other communities and are ready to put together a deal in a moments notice. Advertising mobile home parks for sale has been something that I have done personally for several years. Selling 12-14 parks a year consistently since 1990 I can tell you first hand, the larger ones sell faster.
Does this mean small parks are bad? No, of course not. It is just a simple fact that larger parks are typically easier to sell because there is a large demand for them and the demand spans geographically more so than a smaller park because of the economics to scale. A larger park will have an easier time absorbing a professional third party management company. This is not to say a smaller park will not.
In fact, some buyers exploit the smaller parks just for this reason. They can stay away from the big park big buyer competition and concentrate on smaller easier to run parks for their investment portfolio. Don't forget. the larger the park the more difficult to operate. You have more personalities and more odds of people disagreeing with a rule and more people having to get along with others as the community size becomes larger. At some point the mobile home park for sale may be like a small city. There is typically the following types of buyers when it comes to number of pads.
4-35 sites: your typically small park buyer, usually an individual or two three small investors.
36-75 sites: Typically an individual and some times small groups or syndications of investors.
75-125 sites: Typically a a small group of buyers usually syndicated by a broker and some times an individual or small partnership.
125 sites to 175 sites: Typically a larger group of buyers, again often syndicated by a broker, sometimes an individual or a small partnership.
175 sites and larger: Typical a Real Estate Investment Trust: These companies are usually publicly traded and sometimes individuals and partnership syndications end up with these parks.
So now you have an idea of the relevance of the number of sites. I have put together many deals both big and small and everything in between. In the end, it really boils down to preference, and the intrinsic value compared to what you actually paid for the property is what makes it a good deal or not a good deal.
Should you have any questions about this site or any site within the Gorial Realty Family of web sites feel free to call upon us for answers.
-Samer N. Gorial, and John P. Gorial of Gorial Realty LLC (866) 66 PARKS