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All Forum Posts by: Steven M.

Steven M. has started 4 posts and replied 16 times.

Quote from @Jason Taken:
Quote from @Steven M.:

Thanks for the replies 

I totally understand you can not eliminate risk 100%

I was just wondering if there was a safer way to handle this. 

For example:

If a wrote up a contract between myself and the LLC for a loan on said money and the LLC was sued and forced to sell the property. Would I then be first to be paid back after the sale of the property as the money isn't the LLCs to give?


This is why you have insurance, and use LLC protections. I'm trying to envision a scenario where a litigant is able to take your property away because they sue you. You should have a robust insurance policy.


 No doubt, I will have a robust insurance policy. Just trying to prepare for the worst.

Thanks for the replies 

I totally understand you can not eliminate risk 100%

I was just wondering if there was a safer way to handle this. 

For example:

If a wrote up a contract between myself and the LLC for a loan on said money and the LLC was sued and forced to sell the property. Would I then be first to be paid back after the sale of the property as the money isn't the LLCs to give?

I am planning to take out a home equity loan for an investment property, which will be purchased under my LLC.

My question is, how can I structure this to protect myself from a situation where someone sues the LLC and takes the property, leaving me personally liable for the loan? Since the loan isn't directly tied to the property, I want to ensure I am shielded from that risk.

Quote from @Roger D Jones:

No real worries here.  Actually for me it is an upside to have indivdual systems so you can monitor tenant behaviors.  Point being we have all our tanks pumped  and inspected on a cycle every four years.  If the pumper pulls out inappropriate material you can address with tenant.  We also had a baffle get jammed and when we pumped the tank found all kinds of things.  We made the tenant pay for the pumping.

Also... ask the Health Dept if they have had any repairs on the system.  They will have it on file.  These 'systems' can be intimidating certainly for a new park owner but you have the simplest system there is and if something gets haywire you can get it fixed.  Do your homework but don't worry or overthink it.

Thanks so much for the reassurance! Good points

After doing research on septic systems I got a little nervous after falling victim to the Google search rabbit hole. Lol
Quote from @Account Closed:
Quote from @Steven M.:

You may have seen my other posts in here related to a small mobile home park with 1 ranch home and 5 mobile homes.

I have been waiting on the information regarding the septic design of this property for months. I have finally got them in my hands ( straight from the state of Maines website) and now realize I have no idea really what I am looking at! (I half joke)

It appears each home has its own 1000gl septic tank and leach field. My initial question is… Is it good or bad to have individual septic for each mobile vs one big central unit??

I would much prefer separate, maintained units. That way you can identify the source os a problem early on. Easier to identify and fix.

 Good point! I actually didn't even think about that. I grew up with town sewage so septic is a bit of a learning curve.

Quote from @Toben B.:

If they are newer then it is good - you will likely not have any issues. If they are 40-50 years old then potentially it would be more expensive to maintain/repair them. I would not be bothered by this issue unless they are all end of life. 

 Thanks Toben

They were installed in 1989 and '1992 so they definitely are not new. As far as I've been told, there's never been any issues with the systems.

I got a quote for $2,200 to inspect the tanks. Baffles pipes and leach fields with a camera. I don't think that's a bad price.

In your opinion, do you think as long as everything passes inspection I still should be okay given the age of the system?

You may have seen my other posts in here related to a small mobile home park with 1 ranch home and 5 mobile homes.

I have been waiting on the information regarding the septic design of this property for months. I have finally got them in my hands ( straight from the state of Maines website) and now realize I have no idea really what I am looking at! (I half joke)

It appears each home has its own 1000gl septic tank and leach field. My initial question is… Is it good or bad to have individual septic for each mobile vs one big central unit??

Quote from @Will Stewart:

Use a local bank or credit union for financing. Bar Harbor Bank is that has lended on parks for me. Call around you’ll find one that will lend 80% for 25 years. Don’t expect to sell off the home you’ll likely need to rent it. 

 Thanks so much Will! 

Looking at reviews, it seems like a great bank. I even seen an article with Forbes stating they are on there 2024 list of  best in the world  😲

I sent them a email so hopefully they'll get back to me soon. If not I'll give them a call.

I don't plan on selling off the ranch. At this price I'm hoping to get financing for just the ranch and the five pads and leave the trailers out of the financing. 

This leaves Open the opportunity to sell the trailers to the current residence along with responsibility for maintaining them and just overall leaves me a lot more freedom with more options imo.

Quote from @Roger D Jones:

@Steven M.  Good work... you seem to be handling this like a pro.  


 Thank you Roger, God knows I'm doing my best. I appreciate that encouragement!

Quote from @Rachel H.:

@Steven M. Most investors I know who buy mobile home parks usually obtain lending through private lenders and/or partnerships. I've known some to buy on hard money and then refinance later as well. 

Another option would be owner financing, if the seller is open to it. Hope that helps! 


 Thank you Rachel

Every time I've mentioned seller financing she cuts me off and says she's too old for that .lol