Best way to Finance MHP

6 Replies

Hey Everyone,

What are the best ways to finance MHPs? I should have my first park under contract this week but am not sure which route to go for financing.  I am going to try mt hardest to get seller financing. What about bank financing? I searched bank financing and it looked like most loans had a minimum of $1 Million.  My purchase agree will be for a maximum of $400,000. 

Thanks in advance. 

@Jamin Olds

Consider reaching out to the local (to the park) small banks and credit unions in the area. Keep in mind they'll be asking for the financial statements, so make sure you have them. Also, be prepared to make a lot of calls as most of them won't be interested. 

@Alina Trigub

Thank you. I am going to start calling banks tomorrow. I have access to some hard money lending but not enough to complete the deal. Maybe I can get sellers to carry a portion of the debt and I raise the rest. Trying to think of creative ways Incase I cannot get a bank to lend.

@Jamin Olds banks will loan on smaller amounts . I've financed one for 175k . It's like any other deal when you buy commercial . If the financials are good on the park . Finding a lender should be easier . Don't get me wrong though, there's always a pause on the phone . When the words mobile home park are said . You'll know you're talking to the right lender . When you say mobile home park, and they immediately say yes . They have one in their portfolio already or have heard about the returns they can offer . Once I found a lender for the first park, the second went much easier.

I hope you’ve bought the Due Diligence Manual . I highly recommend it. Great information about the ins and outs of buying. I have recently signed up for MHU boot camp as well . You should visit the site . They have some free information for investors .

Good Luck.

@Jamin Olds   There are small balance commercial programs for mobile home parks at the $250k minimum loan size available.  Let's connect.

The county the park is in must have at least 100,000 people and you'll need at least 80% occupancy but 30 year terms are available.