How to win at mobile home park investing by creating win-win solutions…
The more wins investors can create for current park owners, the more they will find great rewards for themselves too. How do you accomplish that? What do sellers really want? How does that help investors?
“The more serving we are, the more prosperous we become.” – William Arthur Ward
Scoring great deals on mobile home park investments is a lot less about buying a property, or even the price than most can fathom.
Those investors that find the greatest and longest success are those that understand that dealing with sellers is about building a relationship, and a reputation. Show them you care, can help them, and can be trusted to handle referrals well, and you’ll find plenty of great acquisition opportunities.
How do you achieve that?
Build rapport and listen to what they want. Sellers don’t necessarily want money. They often value their parks differently than those going into buy mode now.
A great example of this is someone who bought a park 30 years ago for $50,000. They might be fine selling it for $300,000 now, even though you might value the park at $500,000. It all depends on how the deal is structured, and how much they like and trust you, and how the opportunity is presented. They might just want to get some cash which they may see as easier to pass on to their heirs. Or maybe they are more driven by passive cash flow through seller financing, so they can retire, and prize the exit with the least tax liability.
Some may care most about the community surrounding their park, and even that their tenants and legacy will be well taken care of for years to come. Others will be most motivated by fear, and avoiding any pain of a stressful transaction, or looking foolish.
Mobile home park investors can hone in and figure out owners’ main drivers and build that rapport through a combination of upfront recon work, and meetings and conversations. Find out as much about them as you can in advance via public records, Google, and social media. Then build rapport on the phone or over Google Hangouts if you must, but preferably in person. Avoid hard selling. Probe them for what matters to them, and build the relationship. Whether this deal works out or not, each of these individuals can be great allies in the future.
Make sure to use all of the above when structuring your purchase offer. This doesn’t necessarily mean just giving them everything they want. In fact, your intel may often be best used to create negotiating points. But do line up a deal that will help them achieve they want, and be sure to present it clearly in a way that shows how you are the best to help them get what they want. Remember the best salespeople will never make you feel you are being sold at all. You’ll never realize they are really selling you anything.
VIP TIP: You can’t (and shouldn’t) fake your way to a true win-win solution when buying mobile home parks. And you shouldn’t deceptively take advantage of sellers. Work to find authenticity and a true heart for serving others, and it will pay off with more than just the money.