Mobil Home Parks: How to Finance them and how to find them?

[Derek Voyles]

I'm looking into mobile home parks. I found one that I started running numbers on but couldn't find a lender to finance the deal. What lending options should I research? What are some other ways besides the the MLS to locate on or off market mobile parks?

[Alex Bekeza]

Several Different Factors limit or at least narrow down the options here.

1.  The Loan Size

-This type of loan is considered "Small Balance Commercial".  Many MHP friendly lenders who may have taken it on might turn it down for being under $250k or some similar arbitrary minimum loan amount requirement.

-So now in my mind I'm thinking we can only look at a lender whose minimum is lower, say $100k.

2.  Location

-Most nationwide wholesale/private/commercial lenders have minimum population/local economy requirements.  What city is this in?

If its too rural, I would start searching smaller microlocal lending sources.

3.  POHs

-Biggest obstacle with financing MHPs is the fact no value is assigned to Park Owned Homes.  From your brief description I would glean that these are all tenant owned homes who pay lot rent.  (THIS IS THE BEST SCENARIO).  Lenders are lending on the value of the land + improvements (ability to produce lot rent).

Hope this helped a little bit.

Feel free to reach out anytime.