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Updated about 6 years ago on . Most recent reply

User Stats

47
Posts
14
Votes
Shweta Patel
14
Votes |
47
Posts

I found my first MHP Deal....now I need to figure out the funding

Shweta Patel
Posted

Hi BP Fam,

So after weeks of listening, reading, researching, and scavenging through the interweb for a good fit on a Mobile Home Park deal, I think I have finally found one. 

Background: I am a (former Navy) physician by day and real estate dabbler by whatever is left over of my time. I have done a couple of rental properties via SFH. I have strong credit, long term investments and access to products such as the VA Loan and Physician Loan programs if I wanted to do Owner Occupied. Thus far, obtaining a mortgage has never been an issue.

Commercial loans.....not so easy. Apparently my Debt to Income is getting heavy and most large entities think anything under 2million is worth their effort.

My deal: $500,000 for a well maintained, utterly low maintenance, 17 lot park on 15 acres with room to develop 5 additional ones. Vacancy is only 2 of those lots, 2 are Tenant owned, and the rest of the 13 are RTO!!. Cap rate is a modest 8% ( based on lot rent only; 18% COC).

Its a conservative but stable return on investment which would make for a great stepping stone for me. 

But how do I get it funded? 

I called some hard money lenders: Usually 8-10% with a 2-4 year term max. 

FHA: Doesnt do loans this small so again, 7-8% with 20-25% down over 30 years

Who can solve this equation? 

Thanks in advance!!

Most Popular Reply

User Stats

260
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245
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Ian Tudor
  • Specialist
  • Charlotte, NC
245
Votes |
260
Posts
Ian Tudor
  • Specialist
  • Charlotte, NC
Replied

@Shweta Patel - Hey, I own a few parks in the Southeast. Park seems a little pricey given the size. How much is lot rent? 

Your best bet will local bank financing. I wrote a post on LinkedIn recently helps people with getting loans from them. 

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