All Forum Posts by: Alex Bekeza

@Mark Harrington To add a little more complexity to your scenario.... You need to account for the fact that no bank will offer you 25 year am and below 5% interest on a MHP with this low of occupancy.  Those are pretty dreamy numbers even if the park was firing on all cylinders.  

Only way to acquire a park with occupancy like that is going to be all cash or seller financing.  I'm not aware of any HMLs who are doing MHPs but if anyone else is please do send me that info!

@David Whitaker My pleasure.  Please do post your reviews/experience here once you've vetted the apps.  Feel free to reach out anytime.

All the best, 

Welcome to BP from another 805er!  Feel free to reach out anytime. 

@Marcony Simoes Many self employed investors face the same issue. The answer is commercial loan products. They're asset based and will utilize other underwriting methods to qualify the loan besides DTI such as asset depletion or DCR.

In fact, there are even some commercial lenders who will have no DTI or DCR requirements for loans under $750k.

The rates are going to be higher than conventional but with rates rising the gap between the two is becoming smaller.  

Rather than DTI the more important factors are FICO, experience, and the property's performance.

@Charles Thurber

I work with a handful of small balance commercial lenders who offer 80% and 30 year term/am. However, until loan amounts start getting over $1mm or so they are going to require a personal guarantee from any LLC members who own 25% or more.

I'm not talking about VESTING. It's still vested in your LLC so there's not reason to transfer the property. It simply means that you are all personally responsible for the repayment of the loan.

@Stefani Gillenwater.  Given that it looks right square in the middle of the property its a huge red flag.  Without a doubt it would influence the sale in the future as well as the bank's willingness to lend on it.  

Have a title company give an explanation of the origin.  

There would be a big difference between a municipality owning it for whatever reason and a random homeowner who lease to owned that pad from a desperate owner at some point in the past. 

@Garrett Forbes Welcome to BP.  Feel free to reach out anytime if you have any questions about financing for your self employed investors.