Financial Underwriting for Commercial take out financing of MHPs w/ mixed assets...

[Douglas W.]

Title: Financial Underwriting for Commercial take out financing of MHPs w/ mixed asset types on the same APN

Hey all...

My background is as both a real estate and mortgage broker since 1990. I am interested in updating our underwriting guidelines on MHPs where it pertains to the inevitable mixed-use asset classes that can often be found on one APN. It is common for a MHP to also have SFRs (1-3 buildings), small multi-family (2-3, maybe 4 units), RV park and/or Self-Storage all on the same APN. I want to know how a commercial lender's underwriter (U/W for future reference) would underwrite NOI (income/expenses) on such a mish mash of asset classes under one U/W umbrella. I would imagine each asset class is underwritten as if stand-alone (potentially using a 2-3 year average on NOI on the RV due to wide swings in occupancy month to month, etc.) then mashed into one consolidated NOI for value and DSCR calcs. But, most commercial lenders we know sit on that information as if it were a lithium mine they had sole ownership of. Other asset types we buy are 10-50 multi-family (pretty straight forward on the U/W side), Self-Storage (new to this asset, wonder if there are underwriting nuances I should be aware of), Senior Care and Hospitality.

I appreciate any feedback or resources on this topic. Enjoy your weekend!

Douglas