All Forum Posts by: Will Stewart

Were the homes collateral on your loan and/or used in the appraisal to justify the purchase price? If you got the loan based on lot rent value only then I wouldn’t worry about it. If the loan lists the homes as collateral technically you should be getting a release for them (and paying down a portion of the loan from proceeds).

Call every local bank and credit union in the area, that’s going to be pretty much your only bet. You might have to call 20 but I’d bet you’ll get a few to say yes. 
Id recommend asking for two loans: one on the land only (ie for lot rents, even though they’re POH) and one for the homes (will be a 10 or 15 year term versus 20-25). 

We have a couple different systems we use / have used. Mission Communications and Generating Solutions are the two that we have right now. Not sure about initial install cost but they’re both $750/year or so ongoing cost. We do have them for parks as small as 31 units — installed when  pump houses were upgraded. 

@Logan M. agreed 100%. Our choice to be driving distance to our parks adds eviction headaches for sure (the flip side is that state governments have fantastic assistance programs so there is less need to evict for non-payment, among other benefits). We’re much smaller operators, half a dozen parks in the northeast, but just adding a second viewpoint. 

We’ve only ever operated in states with ROFR. Have lost a few deals to it and sold to tenants as well. Just have to be patient and plan for it. 

Take a minute and figure out what you dislike most about the business. Work on hiring that out. For me, it was menial bookkeeping (upwork is great for finding someone to take this task). Even an hour a week saved is huge. Or it could be handling tenant calls and lease paperwork where you just need a VA.
Nothing wrong with continuing to do the contractor work yourself as long as it fits your life and family goals!

Re: zoning. Check with zoning department and make sure it’s legal non conforming status. If the town thinks it’s a single family home, that would be the time to walk away

I’d keep calling around or at least negotiate to get the term extended: 3 year balloon is rough!

My latest terms from a local bank for reference were 25 yr am (no balloon) fixed rate for 7 years. 

Call all the commercial lending departments at local banks and credit unions in the area. A few will be interested and that’s where you’ll find the best rates and terms. 

Looks like the demand is there so I wouldn’t worry about it if the numbers pencil out