How To Finance MH Plot

Question

Hi,

I need some advice on financing this deal.

I currently own 3 acres of land and a MH free and clear.  I want to develop to remaining vacant land (i.e., clear, install well and sewage system, and utilities).  Not sure exactly how much this will cost but Iâ€™m guessing between 10 and 20K.

So, how do I get financing for this project?  In other words, do I apply for a personal loan?  Construction loan?  What type?

Keep in mind that Iâ€™m looking for financing just for development of the land, NOT the MH.

Thanks.

Alton D. · Answer

Thanks for the tips folks.  I'll keep you all posted.

Rachel H. · Answer

The first thing I"d suggest is to get a clear idea of exactly how much you will need to develop the land. I'd start by getting estimates of every item you'll need done. (When obtaining estimates, it's also best to get a few different opinions).

Once you have a clear idea of how much it will cost to develop the land, then you'll be better prepared when looking for financing. If you've got a good relationship with a local bank in your area, it's best to start there. They can help you go over your options in terms of what they can offer you. I have heard of others who have been successful going this route. Also, you can look into private lending as well.

In essence, it's best to look into all your options available and decide from there.

Hope that helps!

Dale Osborn · Answer

1. Get a mortgage against the land to put in improvements and then get homes in to bring in more income to pay off the mortgage. 
2. Sell the MH - retain the land - rent the land back to MH buyer. Use proceeds from MH sale to install improvements. Get more homes in - repeat process over and over. 
3, Find friend or family member who can loan you the money at a very low interest rate to do the improvements.
Where there is a will - there is a way to do it.