Financing for a self storage & mobile home park property

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Logan M.
Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
2y
Quote from @Simmy Ahluwalia:

@Mark Walker - There are no conventional "dscr" loans for SS and MHP; however, the actual metric still applies when evaluating the physical ratio performance of the asset classes.

Private banks are really the way to go here and leverage is determined based on POH vs. TOH, location, age/quality of the assets, etc...


I have a DSCR lender for MHPS

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  • Jared RineBusiness Member
    Lender · Sacramento, CA · Member since 2009 · 1k+ posts · 277 votes
    2y

    @Mark Walker there should be multiple loan types available for each asset type, but deal factors are going to affect what lender you could potentially go to, as well as what you're looking for. For Self-storage, SBA can be a consideration. Banks and alternative lenders (non bank) are a possibility. So that would be as you mentioned - traditional CRE. But then also non-traditional type sources (lite doc, more flex underwriting, no personal income docs, etc.). Bridge and private money, depending on strategy needed.

    MHP's are their own animal within the multifamily space.  Many lenders don't like to do them and don't do them.  You cannot use SBA for MHP.  But mainly same sources as above.  The main thing that lenders look at is are there many Park-owned homes or tenant-owned homes.  And you want to own the pads and usually have less POH's. 

    While some lenders can get creative with income and/or don't require personal income underwriting, DSCR lending programs technically only apply to SFR 1-4 units and small multifamily (usually to 10 units). PM if need. Hope that helps.

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  • Simmy AhluwaliaPro Member
    Lender · Atlanta, GA · Member since 2015 · 1k+ posts · 200 votes
    2y

    @Mark Walker - There are no conventional "dscr" loans for SS and MHP; however, the actual metric still applies when evaluating the physical ratio performance of the asset classes.

    Private banks are really the way to go here and leverage is determined based on POH vs. TOH, location, age/quality of the assets, etc...

    1Reply
  • Logan M.
    Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
    2y
    Quote from @Simmy Ahluwalia:

    @Mark Walker - There are no conventional "dscr" loans for SS and MHP; however, the actual metric still applies when evaluating the physical ratio performance of the asset classes.

    Private banks are really the way to go here and leverage is determined based on POH vs. TOH, location, age/quality of the assets, etc...


    I have a DSCR lender for MHPS

    2Reply
  • Mark Walker
    OP
    Member since 2024 · 54 posts · 17 votes
    2y

    Thank you Logan. I don't think I explained the property. It has both SS and MHP. Would your lender finance together?

    0Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    2y

    @Mark Walker I would call every local bank in your area too. I've gotten the best terms from them.

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