Financing MHP and other questions

Mobile Home Park Investing
1yFollow

Financing MHP and other questions

Steve NA
Member since 2025 · 1 post · 0 votes

Hello All,

I am new to investing in general (outside of a condo I have rented over the years). I was looking to learn more about getting into Mobile Home Parks and had a few questions that I was having difficulty finding answers to. Any answers or tips would be greatly appreciated.

1) Is it at all possible to obtain 15+ year financing on MHP? The reason I ask is because most deals I see on Crexi or Loopnet or anywhere else create negative cash flow under 7 or even 10 year terms with 7% - 8% interest rate. I am curious how others look at cash flow. To be clear my goal isn't to have a bunch of cash flow Y1 but just looking to break even.

2) How could I go about finding markets where MHP are more beginning investor friendly? I am starting to realize there has been a significant amount of consolidation in the space by private equity and other institutional investors. 

3) From research it also seems like getting financing can be difficult without prior experience in the space. Would going to local real estate meet ups be the best way to find potential investors I could partner with? Wasn't sure if there are more efficient ways to meet folks (BiggerPockets aside).


Any guidance is greatly appreciated. Thank you.

0Reply
54 views

4 Replies

Jump to latestLatest
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    1y

    Check out the MHU bootcamp by @Frank Rolfe!

    We've worked with local banks and been able to finance the three we own without any issues.

    I don't necessarily know if it's "beginner" investor friendly but you'll learn everything you need in the bootcamp which is the gold standard

    We get loans with 3-7 year balloons and 25 year amortization typically

    [email protected]512-888-9122
    The Moorhead Team5140 Reviews
    WebsiteView Page
    0Reply
  • Ericka Parrott
    Residential Real Estate Agent · Atlanta, GA · Member since 2009 · 381 posts · 134 votes
    1y

    https://www.biggerpockets.com/blog/biggerpockets-podcast-262...

    The info in this podcast addresses financing

    0Reply
  • Roger D Jones
    Member since 2023 · 178 posts · 122 votes
    1y

    Steve,
    It is true PE and investment groups have been gobbling up the market over the last 10 years- so much of the 'great all TOH parks' are more and more difficult to find.  That being said we as private investors can use this to our advantage and find some successes in POH parks or mixed POH/TOH parks.  I would focus my attentions here and try to stay local (within a 4 hour drive) as the POH rentals require more engagement.

    Financing is a tough deal... but sometimes you can find those Mom and Pop operations with quite a few POH rentals that will work with seller financing on a reasonable interest rate with a balloon within 5-7 years.  That gives you time to get organized and established for more conventional financing.  Just remember though unless you have deep pockets you need to at a bare minimum stay cash flow neutral until you get the property running and your debt paid off.  

    As for Frank and Dave at MHU.  An absolutely amazing forum that has an answer for any question you could ever ask... search the forum or ask.  I am not a huge fan of them personally as they are PE investors and have a very, very narrow view of the industry and how it should be approached.  Just my opinion though for what it is worth.

    0Reply
  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    1y
    Quote from @Steve NA:

    Hello All,

    I am new to investing in general (outside of a condo I have rented over the years). I was looking to learn more about getting into Mobile Home Parks and had a few questions that I was having difficulty finding answers to. Any answers or tips would be greatly appreciated.

    1) Is it at all possible to obtain 15+ year financing on MHP? The reason I ask is because most deals I see on Crexi or Loopnet or anywhere else create negative cash flow under 7 or even 10 year terms with 7% - 8% interest rate. I am curious how others look at cash flow. To be clear my goal isn't to have a bunch of cash flow Y1 but just looking to break even.

    2) How could I go about finding markets where MHP are more beginning investor friendly? I am starting to realize there has been a significant amount of consolidation in the space by private equity and other institutional investors. 

    3) From research it also seems like getting financing can be difficult without prior experience in the space. Would going to local real estate meet ups be the best way to find potential investors I could partner with? Wasn't sure if there are more efficient ways to meet folks (BiggerPockets aside).


    Any guidance is greatly appreciated. Thank you.


     Question 1) 

    You can absolutely get long term financing on good mobile home parks. My client had some things come up that prevented her from executing, but these were some of the options I had put together for her, a regional bank, a regional CU, and a national bank.

    Reminder that NOI sizes CRE debt, and that's often what determines the down payment requirement, not anything to do with the client or particular lender, just the property itself.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free