Howdy BP friends. I have recently decided to shift my business focus away from the typical MF and SFR to mobile home parks. I have a good handle on bank financing when it comes to single family, but I have no idea what to expect for closing costs on a MHP. Can some one give me an estimate or help me understand what closing costs would be for bank financing on a park with a sales price of around 750k? Or if you have real numbers from a recent deal you can share, that would be awesome! Thanks!
I know there are a lot of variables to this question, but I’m just looking for a ballpark estimate. My gut feeling is 8-10% but that is just a wild guess.
A lot of it depends on the commercial broker and the taxes.
I would suggest contacting a commercial broker that specializes in MHP for the state you're looking to purchase in.
@Dave Van Horn thank you for your reply. I do understand there are many variables associated with the question. I’ve spoken to a few bankers and brokers but no on has really taken me seriously at the moment because I’m not a park owner, and have nothing under contract....yet. I’m just trying to estimate my out of pocket expenses at closing.
It can take a lot of work to actually calculate that number that's incredibly dependent upon on the deal.
You might want to try looking at a deal that's closed. REIA groups have commercial meetings, you may be able to find someone there to show you a recent deal to give you a rough idea of closing costs.
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