Updated almost 6 years ago on . Most recent reply
Mobile home park purchase
I am 100% into mobile home investing. I have a few homes in my portfolio which are all getting me highly positive cash flow. I'm end game is to buy 1 or more MH parks. My question is will banks finance a park? If banks dont touch them what would be my best financing step? Thank you in advance for your responses.
Most Popular Reply
Hey there! Good on you for making the decision to go for it.
To answer your question, it really depends on the park. Banks will usually finance parks that are stabilized and have a certain occupancy (I believe around 70% or so but I could be wrong). It also depends on the bank. national banks like chase or Wells Fargo will definitely be more strict about it but local banks that can give portfolio loans will be able to work with you more if you build a relationship with them.
One thing to keep in mind about banks is that they will only really consider the lot rent as income into how much the park is worth. mobile hone rent is not considered because of the expenses that go along with it.
if the bank financing doesn’t work, the next popular strategy is seller financing where the seller becomes the bank.
Hope this helps and best of luck!