I am currently in a position to purchase my first investing opportunity and my first MHP. I would like to have it in an LLC but I am unclear on whether I need to have that established prior to the purchase or if it can be transferred afterwards (or what is easier). Experienced input would be much appreciated! :)
Did you find it hard to get approved for financing with a new LLC?
Are you thinking of getting seller or bank financing for the deal? If you plan on using seller then having it in an LLC won't be that big of a deal. If you plan on going bank route, have you found a bank that you know loans on MHP? If not, you'll want to start shopping around for one of those ASAP. If you don't mind me asking, how large is the park, ratio of POH to OOH, and how many empty pads does it have?
Thanks @Bill F. I still have to discuss financing with the seller. I'm open to either. There is a bank that I'm sure would help me out with this purchase. They do portfolio loans and I've worked with them in the past. The park is small and rural; all the homes are OOH. There are 90 pads and vacancy is high...the current owner has not kept the place up over the years so it does need some work.
@Karli F. That's awesome you have an existing relationship you can leverage. I would caution on assuming any banks make loans on parks. MHPs have the connotation of being synonymous with trailer parks in some peoples mind and this will cause some banks to balk. Add in the high vacancy rate and the bank may pass.
It seems like you have a great value add opportunity and depending on the asking price some great upside. Hope this helps.
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