Seller finance MHP

[Kilian E Peterdy]

Investment Info:

Mobile home commercial investment investment.

Purchase price: $725,000
Cash invested: $550,000

82 UNIT Mobile Home Park
Purchase price 725K
Down Payment 350k
Capex 200k
Funds to raise 550k
Seller finance 4.75%
3 Yr balloon

What made you interested in investing in this type of deal?

Seeking private lenders to fund

How did you find this deal and how did you negotiate it?

On market

How did you finance this deal?

Private

How did you add value to the deal?

NOI/CAP

[Dominic Mazzarella]

Quote from @Kilian E Peterdy:

Investment Info:

Mobile home commercial investment investment.

Purchase price: $725,000
Cash invested: $550,000

82 UNIT Mobile Home Park
Purchase price 725K
Down Payment 350k
Capex 200k
Funds to raise 550k
Seller finance 4.75%
3 Yr balloon

What made you interested in investing in this type of deal?

Seeking private lenders to fund

How did you find this deal and how did you negotiate it?

On market

How did you finance this deal?

Private

How did you add value to the deal?

NOI/CAP

Mind if I ask specifically what the 200k capex is for? Also, has the contract already been signed with these seller financing terms? The rate isn't bad at all, but a 3 year balloon and a 50% down payment isn't really common. I don't know, I'd be a little nervous about being trapped here. I've heard of nefarious sellers who use terms like these to get someone to sign a contract, knowing that there is a small likelihood that the property gets sold or refinanced in 3 years and then they get to repossess the property.

I'm not saying at all that this is what that is, but how are they justifying these terms exactly? I would be cautious.