Hampton Roads, VA · Member since 2014 · 52 posts · 27 votes
Could anyone point me to a MHP lender that would entertain a loan on a $425,000 purchase. 28 space park, 26 homes, 24 occupied. No park owned homes, city water, city sewer, paved road. NOI around 47k.
We would like to bring 30% to the table loan amount of $297,500. The challenge we seem to be finding, at first look, is the small size of the loan.
Thanks, John
Investor · Durham, NC · Member since 2013 · 62 posts · 40 votes
8y
I highly recommend First South Bank. They did a loan for me at that exact amount on a similar sized park in NC. Depending on your personal credit and number of partners, SunTrust does unsecured loans through their LightStream unit. It’s all online. I got $100k at 6% 10 year amortization and the money was in my account 24 hours after I did the application. SunTrust does not do these loans in their branches, it’s all online.
Rental Property Investor · Millersville, MD · Member since 2017 · 127 posts · 44 votes
8y
have you asked the seller if they’re willing to carry the rest?
It sounds like a pretty straightforward deal. I may be able to help if you’re willing to partner for a short period. It’s easier to “refinance” sometimes than get a small loan.
West Plains, MO · Member since 2017 · 14 posts · 8 votes
8y
@John Brinkos, Hi, My husband and I bought a MHP and initially had trouble with the loan also. It was a 39 space park with about 25 occupied with 4 park owned homes on 8 acres. We wanted to use a local home town bank, but had never done a MHP loan and only looked at the value of the land. So we went to the bank we always use which is a national bank, and they too in the beginning were looking at the physical value, until we went in and talked to them about looking at it from the income perspective of it. They still under valued it, but we finally got the loan, purchase price was 250,000 and we put down 60,000.
Investor · Durham, NC · Member since 2013 · 62 posts · 40 votes
8y
I highly recommend First South Bank. They did a loan for me at that exact amount on a similar sized park in NC. Depending on your personal credit and number of partners, SunTrust does unsecured loans through their LightStream unit. It’s all online. I got $100k at 6% 10 year amortization and the money was in my account 24 hours after I did the application. SunTrust does not do these loans in their branches, it’s all online.
Could anyone point me to a MHP lender that would entertain a loan on a $425,000 purchase. 28 space park, 26 homes, 24 occupied. No park owned homes, city water, city sewer, paved road. NOI around 47k.
We would like to bring 30% to the table loan amount of $297,500. The challenge we seem to be finding, at first look, is the small size of the loan.
Thanks, John
I should be able to get this one done, John. Feel free to PM you phone number and I will call to discuss.
Hampton Roads, VA · Member since 2014 · 52 posts · 27 votes
8y
Jon Dorsey and all,
Thank you so much for the advice and assistance. Unfortunately, some things turned up as we went through do diligence that we could not come to an agreement on so we are no longer moving forward on the MHP.
Oh well, NEXT!
Everyone have a great day and a great weekend.
John
Hampton Roads, VA · Member since 2014 · 52 posts · 27 votes
8y
It was about how a major operational restructuring would effect the forward operation and our discomfort with the risks. The seller and I were unable to come to an agreement when we became fully aware of how recent the restructuring occurred and the lack of proven operation compared to the price.
Could anyone point me to a MHP lender that would entertain a loan on a $425,000 purchase. 28 space park, 26 homes, 24 occupied. No park owned homes, city water, city sewer, paved road. NOI around 47k.
We would like to bring 30% to the table loan amount of $297,500. The challenge we seem to be finding, at first look, is the small size of the loan.
Thanks, John
@John Brinkos - curious - where was the park located
Wilmington, NC · Member since 2017 · 31 posts · 23 votes
8y
I’m trying to analyze a similar 23 park in eastern NC with all pods owned by tenants, utilities are paid by tenants and it’s on the city water & sewer line. Can’t get an accurate NOI from the seller but I know that rents are $275 with 1 home rented for $625. Taxes are $6000. Asking is $750,000 and they turned down an offer for $625,000 from another buyer. What are you collecting in Fayetteville per pod? What % expenses should I account for? Park is in below average condition for the area