MHP lenders for NC no park owned homes

13 Replies

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

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. 

call all the banks and credit unions in the area. That will be your best bet. Loan brokers won’t look at deals below $1M. 

@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.

I hope this helps you.

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. 

@John Brinkos I should of mentioned what bank we did get our loan from.

It was Arvest Bank and they have been wonderful!!!

Originally posted by @John Brinkos :
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.

How is everything coming together? Were you able to find a bank or how did you proceed?

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

John,

Sorry to hear that. Was it financials, physical, or environmental that you found. Thank goodness for diligence. 

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.

Originally posted by @John Brinkos :
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 

Fayetteville, NC area.

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

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