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Updated almost 5 years ago,
Owner Financed Mobile Home Park (Balloon Payment)
Hey all,
I'm about to put a seller financed mobile home park under contract in June, and am trying to get a few ducks in a row for the future balloon payment. The asking price is 460k, I'm coming to the table with 20k, the park grosses $4600 a month, my payment to the seller is $2200 a month plus i'm assuming a loan on the property in the amount of $1700 a month ($3900 all in a mo).
The seller wants the balloon payment by June of 2022 as that is when his loan matures (2 year deal). The concern: my LLC is brand new as of 2020, and will have about 1 1/2 years of income under it's belt to show a bank when the full amount is expected to be paid. I still earn a good income from my W2 job, and plan that to be the case in the next 2 years in addition to this mobile home park. The worry is that the bank will really want that 2nd FULL year of reporting before they even consider touching this deal. My big question is: would you recommend going the traditional financing route here, or would a private lender make more sense? Do private lenders even exist for these circumstances? I'm all ears and will be grateful for any recommendations/advice.
Thanks!