Rolfe, the fifth-largest owner of manufactured home communities in the United States and the leader of Mobile Home University, set up the discussion with the opening line, “If you have a park to sell in the future, this discussion may be worth a fortune to you.”
The hour-long conversation began with Rolfe asking Bradley to explain the history of ROC USA, as well as the history of the cooperative ownership model for manufactured home communities. From there, Romeo explained the process of how a park owner can begin the process of selling to the residents, including how ROC USA comes to valuation, puts the park under contract, notifies the residents about the opportunity to purchase, and helps the community form a corporation.
In the episode, Romeo explains how once a contract is signed, the purchase process becomes just like any other commercial transaction – due diligence can be completed in an average of 60 days, and the transaction requires an additional 30 days to secure financing. While the resident corporations can secure any financing they desire, “More often than not, ROC USA® Capital is going to be the lender on the acquisition,” said Romeo in the interview.
Rolfe and partner Dave Reynolds have sold three communities to residents through ROC USA Network affiliates, most recently Asociaciòn de Residentes de North Lamar (ARNL) in Austin, Texas. In the conversation, they talk about the benefits of selling to residents and look at specifics from past deals. Rolfe, Bradley and Romeo also discuss trends in the industry and the misnomers of manufactured homes in the affordable housing segment.
Listen to the conversation:
If you are a park owner interested in learning more about selling your community to the residents, please contact Angela Romeo for a private conversation at firstname.lastname@example.org or (603) 545-1704.