7% fixed for 61 months with a max amortization of 240 months

[Nita Martin]

Greetings!!

My name is Nita and I'm a Louisiana gal just starting my real estate investing journey with my husband.  We are hoping to purchase a mobile home park as our initial investment.  It has 8 mobile homes and a rental home included with the land, etc.  It is an amazing deal, so I won't even mention the price :) . Likewise, it is familiar territory as we were raised in mobile homes, and my aunt owns a park.  That being said, these are our loan terms: 7% fixed for 61 months with a max amortization of 240 months and a documentation fee of $500.00.  Can someone explain this to us in "starting out" terms?  We plan on refinancing for better terms within 2 years since we are purchasing with good equity.

Thanks!!

[Courtney Fricke]

I have a feeling that this is the same park that I walked on Sunday but maybe not. I'm actively looking to buy a park myself. I would shop around to see what terms are offered to see if you are getting a market rate or a good deal. As for the park itself, regardless of if this is the one I looked at or not, how are you analyzing it? Has your aunt weighed in given her experience in the industry? What do you mean when you say it has equity in it? 

I've had to transition from SFR thinking to commercial thinking with terms like cap rate, NOI, etc so that I can understand parks better. Wish you the best of luck! If I can help, let me know.