THE CHALLENGE
After the passing of her mother and with her father’s health declining, the seller of Hermacinto Mobile Park stepped in to manage the family’s legacy 55-space MH & RV asset. The 55+ community in sunny San Jacinto, California faced significant infrastructure challenges, with only 42 of 55 spaces occupied and outdated electrical and plumbing systems dating back to the mid-1900s. The property required approximately $500,000 in capital improvements, including electrical upgrades and road repairs. The seller needed to balance achieving her financial goals with the reality of the property’s condition.
THE PROCESS
The seller began by contacting several top brokers specializing in mobile home parks to determine the property’s value. After receiving different estimates, she found Rand Hoffman’s expertise, kindness, and straightforward approach stood out.
From their first conversation, Rand provided a realistic assessment of the property’s condition and potential value. Most impressively, Rand already had a potential buyer in mind who would understand the value proposition of the property despite its challenges.
“Rand explained, ‘I may already have a buyer for your Park!’ We discussed everything, ups and downs of my particular park. I went with him!” she recalls.
When the buyer’s contractors identified the extent of necessary repairs, including significant electrical and road improvements, Rand facilitated transparent negotiations that kept both parties engaged despite the challenging circumstances.
THE SOLUTION
Working with Rand, they developed a thoughtfully structured deal that addressed both the seller’s needs and the buyer’s concerns:
Strategic Price Adjustment: Acknowledging the infrastructure realities, the final price was adjusted by 16% from the seller’s initial target.
Customized Seller Financing: Rand crafted terms with optimized interest rate, down payment, and term length to achieve the seller’s monthly income objectives despite the price adjustment.
Transparent Due Diligence: When the buyer’s contractors identified significant infrastructure needs, Rand facilitated constructive negotiations rather than allowing the deal to collapse.
THE RESULT
Today, the seller enjoys reliable monthly income through the seller financing arrangement that meets her financial needs, while the new owners are implementing a strategic improvement plan for the property. The park’s infrastructure is being methodically upgraded, vacancies are being filled, and the community continues to serve its residents.
The transaction demonstrates how seller financing can create successful outcomes even when properties require significant capital improvements. By focusing on the seller’s monthly income targets rather than just the purchase price, Rand structured a solution that worked for all parties.
