Financing Mobile Home Park's with 80-90% POH

[Khizer Husain]

Any lenders finance mobile home park owned homes with 80% park owned homes? Strategy would be to convert all renters into rent-to-own model.

I am getting 50% Seller Financing with 2nd position and looking for a bank that could do 30-50%. 

Please guide on financing and strategy of converting current tenants to rent to own. 

Thanks

[Frank Rolfe]

You should have no problem finding a bank that will do 50% LTV. If the deal is under $750,000 in loan size, then focus on local banks (the old time on the main square kind). If it's $750,000 and over in loan size, use a loan broker like Security Mortgage Group.

You cannot do "rent to own" under the SAFE Act. So you'll either have to 1) sell them for cash or 2) give them away to whoever's current renting the home (ask your state MHA). You could also rent them in a "rent/credit" format but that's a bad idea unless they're in good condition (the repairs on a mobile home will destroy any potential profitability).