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SMALL PARK SELLS - A GREAT VALUE FOR BOTH BUYER AND SELLER

The mobile home park (Trailer Park) for sale in the city of Colton, San Bernardino County, California was sold on September 9th, 2002 for $192,000. Vince Reynolds and Norman Sangalang of MHRV Advisors represented both parties in this transaction.
 
The park consists of 10 trailer spaces and a 3bd/2ba SFR. Both home and park were older and in need of repairs and upgrades.  The property is situated on a total of 0.35 acres.  The Buyer intends to replace the aging electrical system and renovate other aspects of the home and park as well as fill the vacant spaces.  The park is situated a few blocks from Valley Blvd. which is Colton’s commercial thoroughfare running parallel north of I-10 freeway.

The buyer used a line of credit of $145,000 for the mobile home park financing.

“The park rents at time of sale were just under $200 per month which is about $50 dollars under market. Even with the below market rents the changes in rental terms increased the value of the park dramatically from the Seller original purchase price only one year before. With potential upside in rents and filling vacancies the Buyer should continue to see an increase in value in a short period of time.” said Norman.
 
Vince Reynolds also commented, “Many of the smaller park owners are not aware of the potential value of their mobile home and trailer parks. Because of the smaller sales price of the park the Buyers were able to use an Equity line of credit at 4.75% with no appraisal. Many of the investors for smaller park can pay cash or use other lower rate loans to finance the purchase. This means higher cash on cash returns for Buyers and the same time higher values for Sellers.”

Mobile Home / Trailer Parks for sale in CA, San Bernardino County, Colton

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