How to Buy a $2.9 million MHP

How to Buy a $2.9 million MHP

Samuel CoronadoPro Member
Investor · Huntsville, AL · Member since 2016 · 348 posts · 182 votes

This is more of a reach goal for me since I am still in my "collect 4 green houses before trading up to a red hotel" stage, but I thought I would ask the hive mind anyways. How are deals like this usually structured? First off, when I was doing my Zillow map search, it came up as in MS. I've personally driven this neighborhood and was amazed at how nice and clean it is. Is this a cut and dry 20% down deal the rest through a commercial lender like Wells Fargo or are there better ways to do this? 

This is the address: 0 Highway 72, Killen, AL 35645
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Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
1y

You can use local banks and there are national lenders. I checked this out and it looks overpriced without having any other info. For almost $100k a lot you want a pretty high NOI to make sense of it, like over $300k IMO

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

    You can use local banks and there are national lenders. I checked this out and it looks overpriced without having any other info. For almost $100k a lot you want a pretty high NOI to make sense of it, like over $300k IMO

  • Samuel CoronadoPro Member
    OP
    Investor · Huntsville, AL · Member since 2016 · 348 posts · 182 votes
    1y
    Quote from @Jordan Moorhead:

    You can use local banks and there are national lenders. I checked this out and it looks overpriced without having any other info. For almost $100k a lot you want a pretty high NOI to make sense of it, like over $300k IMO


     I agree. It's definitely a bit high. I believe these are all POHs as well. 

    When you finance through national lenders, in your experience, is a balloon a common requirement for commercial loans of this nature or is it possible to get a fixed rate for 30 years? 

  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    1y
    Quote from @Samuel Coronado:
    Quote from @Jordan Moorhead:

    You can use local banks and there are national lenders. I checked this out and it looks overpriced without having any other info. For almost $100k a lot you want a pretty high NOI to make sense of it, like over $300k IMO


     I agree. It's definitely a bit high. I believe these are all POHs as well. 

    When you finance through national lenders, in your experience, is a balloon a common requirement for commercial loans of this nature or is it possible to get a fixed rate for 30 years? 


    Yes, I've never seen a commercial loan without a balloon. Some DSCR lender may jump on here and say they do them but I don't like their terms typically.

  • Investor · Baltimore, MD · Member since 2019 · 168 posts · 47 votes
    1y

    Seller financing

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