Funding a Mobile Home Park

[Dominick Dahmen]

Hey everyone,

I have been in the forums a lot lately, and I'm wondering on funding for an MHP. I've seen a few deals that I want to look further into. The problem is I have average credit and really no money for a down payment. I know there are companies that will do 100% financing if they bring 50% and say the seller covers the other 50%. 

But how do lending companies feel about the down payment being borrowed from private money or a partnership?

[Dominic Mazzarella]

Most traditional lending companies will not be happy at all about borrowing money for the down payment but if it's from a partnership that's different. 

If you have no money for a down payment or only a little bit of money then you're going to have to get creative. This could mean doing a lease with option to purchase, highly leveraged seller financing, JVing or syndicating. Most of these would be difficult to pull off without any credibility in the industry. 

Perhaps the most wise option for you would be to find a really good deal and then find a partner or two willing to invest. If you find a good deal it shouldn't be very difficult to find the money. Honestly if you find a great deal, just put it under contract and post on the forums or talk to people you know about the deal and if it really is good you'll be flooded with people interested. Most people looking to invest in these types of deals will want off market deals that are 10 + cap but they may have other metrics that are important to them such as IRR or CoC return.