10 Unit Mobile Home Park

[Ryan Baxley]

Investment Info:

Mobile home private money loan investment.

Purchase price: $480,000
Cash invested: $100,000

I purchased my first commercial property in Odessa TX using seller financing (also a first). Many lessons learned on this one!

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

Simply because I had heard so much about how great MH parks are to invest in! I have always wanted to break into the Multi-family/commercial space of real estate investing.

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

I found the deal on Loopnet. After speaking with maybe 12 or 13 different lenders in the area (and being rejected by all due to the property type) I approached the seller and informed them, politely, that the property would not sell unless someone was able to offer cash. And most people able to offer cash, would not offer their asking price. So we negotiated a seller finance deal.

How did you finance this deal?

Seller financing

What was the outcome?

Current cap is 19.5%

Lessons learned? Challenges?

It's better to own the park, rather than the MH's themselves!!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Nope