Has anyone purchased a mobile home park using creative financing?

Question

Just wondering if anyone has purchased a mobile home park with no money down. What was “creative” method was used? And how did you go about finding your first park?

Curt Smith · Answer

Hi Orlando,  I suggest you read back 6 months in this forum.  Study the deals being presented.  It is possible to learn from others and other's deals analysis.

Go to mobilehomeuniversity.com and read their forum back a few months.  Each thread.  That forum covers the expert's expert topics.

Go to their Books and materials.  Buy their Due Diligence kit.  Take their boot camp in person.  You'll learn a lot.

http://www.mobilehomeuniversity.com/mobile-home-pa...

Best of luck, curt

Account Closed · Answer

Here is what you have to ask your self.  Lets say you have 10 great deals that are being sold for cash but they are 50% of market price. Sometimes when you look at it , its silly to get hung up on "creative financing" because in that case you would overlook those deals....

That being said , yes it can be done but if you are stuck on it, then you might miss a bunch of other gems.  Its one tool in the belt but not everything is a nail.....

David Schach · Answer

Its not that whether strategy works or doesn't. The issue is that on paper its easy to draw up, in practice much harder to execute. I think the nature of your question is wrong. Of course people have done it. You should be asking how difficult is it in todays market to purchase a MHP with no-money down, no track record, no management experience, etc. And how much time of your own personal time will it take to do it. I dont know the answers, but i would assume that its really hard, and will take 100s of hours. Might be better off using another method.

Account Closed · Answer

Yea, that stuff really goes out the window when dealing in parks.  So you should not worry there.  Especially on the larger parks as the property will need to qualify but the lender may need to see a track record.

Account Closed · Answer

Again, just as you say, loan or CC are non existent but you are narrowly thinking of YOUR  CC or a Loan to you.  You have to come out of the box when looking at things.  Thats just an example.  Especially now a days where bank yields are .000000000001 , capital is looking for yield  probably more than ever

Account Closed · Answer

Correct, I would say in theory its better than in practicality.  Again, whats the goal of NMD deals? It just sounds sexy because it appears to be "easy" i guess.  Im sure you could find some crappy deals that would be no money down but I don't think you would want to take those.  I once had a deal I passed on but it was a no money down and just a super fast mortgage amortization to pay off the property in 3 years.  I passed on it for a couple of reasons (and actually i can't remember if needed up at 0 down or 10 k down) but rest assured anything is possible but don't be deluded by the concept of no money down because you may pass on a ton of other good deals by doing that.  There are smart operators and capital in the market that would probably figure out a way to make it NMD for you.

Account Closed · Answer

if you find a deal, you can partner with someone who has the funding and skill. So you can be in the deal with no money down. You can get an owner finance for 10% down And get a loan or CC cash advance for the funds required. You can probably even get 100% financing. Just don't take a bad deal based on terms and don't have too narrow view of what your own finances can accomplish.

Orlando Paz · Answer

Mike Watkins - I agree with that. Other than owner financing, a master lease is the only other creative option that comes to mind.

Orlando Paz · Answer

Jack Baczek - I've been looking at alternate ways for other investment opportunities, via hard money. The possibilities look very good, taking that route. I also tried reaching out to a local portfolio lender, but haven't heard back from them. Not sure what to make of that, but not very impressed with the fact they have not gotten back to me. Also seems that portfolio lenders are hard to come by. My current credit score falls below the standard minimum FHA loan. That by itself makes things difficult. As far as CC's go, I'm already in hot water with those guys. Without getting too detailed about my circumstances, I am in a tough spot. The conventional route, simply is not an option right now. I'm actually trying to find solutions via alternate methods. If I can bring my score up, I may then qualify for an FHA or USDA loan.

Orlando Paz · Answer

Jack Baczek - The idea of finding a deal and partnering up with someone, actually sounds like a great idea. The possibility of a loan or credit card use, are non-existent right now. If credit wasn't part of the issue, I would certainly look into using conventional lenders and CC cash advances. I appreciate the great feedback.

Has anyone purchased a mobile home park using creative financing?

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