MHP Financing Options

[April Eilers]

We own a mobile home park in Nevada that we are selling ($320k). We have had a number of buyers that are interested but can't get financing due to the fact that we only have one year of rent rolls. Most lenders seem to need 2 years of historical information. Do you know of any traditional commercial lenders that would write a loan without 2 years of historical info? Otherwise, do you have suggestions for alternative sources of financing that I could suggest to my buyers? Is hard money the only option? Thanks in advance!

[Jack Martin]

@April Eilers it might make sense for you to do the work of finding the lender who will lend on the park, givein your situation.  Your best bet will be a local or regional bank in the area where the park is located.  If you contact those banks and identify the ones who lend on parks and explain your situation, you should be able to get a lender for the park.  Most lenders will ask for 2-3 years of park history, but if they like the park, they will find a way to lend on it. It will likely take a lot of phone calls, but with that approach, I would bet you will find a lender.  

Also, you can network with MHP brokers, property managers, and others in the MHP space who might be able to refer you to the lender without all those phone calls.