Financing a mobile home and using an LLC?

Question

We are looking at buying a park model home and land. We want to finance it, but the lenders like 21st mortgage will not loan if it’s an LLC.

We are wondering how we can finance a mobile home + land but have it under an LLC instead of our personal names.

This is because we plan to Airbnb it.

Also it is a park model which is considered and RV due to it being 399sq ft.

Rachel H. · Answer

@Paul Ross I agree with @Adrian Smude. It's best to scope out your options and talk to multiple sources.

Check with your local real estate investment club. See what local funding sources other investors are using to fund their deals. This may be a good start.

Also, you may want to see if there are any private lenders in the group looking for funding options. If not, there may be people there who may know others who are looking for deals to fund.

Hope that helps!

Jeffrey Abraham · Answer

Financing a park model home and land under an LLC for Airbnb purposes can be a bit tricky due to certain restrictions and preferences of lenders. Here are a few options and considerations:

• Commercial Loan or Portfolio Lender: Some commercial lenders or portfolio lenders may be more flexible in financing properties under an LLC, especially if the property will be used for commercial purposes like short-term rentals (Airbnb). These lenders often consider the income-generating potential of the property rather than just personal credit history.
• Non-conventional Financing: Look for lenders who specialize in non-conventional or alternative financing options. These lenders may have more relaxed requirements regarding the ownership structure (LLC vs. personal names).
• Seller Financing: If the seller is motivated or willing, you could negotiate seller financing where the seller acts as the lender. This can sometimes bypass the LLC restriction, although terms may vary.
• Refinancing after Purchase: If you initially purchase the property under your personal name and then transfer it to an LLC, you could explore refinancing options post-transfer. This approach involves risks and considerations, including due-on-sale clauses in existing mortgages.
• Credit Unions and Local Banks: Sometimes local credit unions or community banks can offer more flexible terms compared to larger institutions. They may consider the unique circumstances of your purchase and the intended use of the property.Dm me if you need help with finance I can point you in the direction of a hedgefund.

Roger D Jones · Answer

I am no banker and there are people here that will certainly address your question better than I... but it appears you are blending real property and personal property and trying to bundle together into an LLC.  It's like buying a house and wanting to throw in a jet boat and 'bundle' it.  You will probably have to buy the property on it's own as an LLC and then take out a second business or personal loan on the RV.  You might then be able to transfer that RV in title into your LLC.  There is probably other ways to solve this and the bankers on here will be of help.

Financing a mobile home and using an LLC?

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