Mobile Home Park for Sale Cabot AR
Little Rock, AR
First Security Bank
205 W Pine St
Thrifty Car Sales
1810 So 8Th Street (Hwy 71B)
106 S 2nd St
Successful Strategies for Selling you Mobile Home Park
| SUCCESSFUL STRATEGIES FOR SELLING YOU MOBILE HOME PARK|
Thu 01/15/09 11:33:06 pm
by Dave Reynolds
Selling you park is a big moment for you. It is time to reap all the rewards of your hard work, risk-taking and judgment. So why not maximize the money that you can put in your pocket - or your 1031 account. There are some strategies that can increase the profitability of the sale enormously.
Fine Tune Your Rent Months Before You Put It On The Market
Boosting the lot rent amount is the #1 way to increase cash flow on your park, leading to a higher sales price. Don't forget that, at a 10% cap rate, every dollar you make over a year is worth 10 times that amount to the buyer. That $20 rent increase you have been holding back on your 100 lot park is actually $20 x 100 x 12 x 10 = $240,000! So before you even think about printing that sales package, get your rents maximized.
Cut Your Expenses
Review each line item and cut everything you humanly can. Remember that the 10 x annual income refers to expenses, too. If you can save $2,000 in costs per month, then there is another $240,000 gain in value. Remember, though, that your expenses have to be real - you cannot cook the books and claim the park has no expenses at all - a bank is going to want to see expenses within the normal industry standards range of 30% to 45% of revenue.
Build A Great Package
The sales package is often your only attempt to sell the park. If the buyer does not understand or care for the package, he'll never call you back. Instead, you need a terrific presentation that attracts buyers and holds their interest. It should be easy to read and show current revenue and expenses, as well as nice photos and maps. Don't try and confuse your buyer with a lot of "Proforma" jargon (what the park could be) - it is just confusing and always begs the question "if it's so easy to do, why hasn't the seller already done it?"
For more strategies, come to our Summit conference entitled "Successful Mobile Home Park Strategies for the U.S. Recession , to be held in Anaheim, California on February 20 to 22, 2009. For tickets call 888-304-2333 or get more details online . The economy may be done, but you don't have to be! Dave Reynolds has purchased 10 mobile home communities in the past 12 months alone. He is immersed in the business every day with this website, his current ownership of 15 mobile home parks, and several more to come. Dave has literally seen several thousands of potential mobile home parks to buy over the past 12 years and can look at a deal and decide within minutes whether it is worth looking at further. If you have been thinking about Selling a Mobile Home Community and want to get the most potential buyers... Online or Offline... then find out more about Selling your Mobile Home Park If you are an Investor looking to Profit in the M...
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