Funding for mobile homes and portfolio

7 Replies

Hey BP,

I have a question. Is there any lender that would fund a deal with the seller holding a second for 25% on an MHP purchase or a portfolio of houses making the deal 100% finance? I am in Indiana where the properties are located and most of the lender that I would normally use do not allow seller seconds. How can you grow if you don't do creative deals? It is a low amount of lenders that understand what an investor is doing with creative real estate.

@Donald Torrence have you considered working with an equity partner? Banks don’t like to participate in 100% financed deals because then there is no skin in the game. What would prevent you from getting frustrated and simply walking away?

If you get an equity partner, you will run the deal, the equity partner will likely be passive, and the bank will fund a portion of the deal under their normal terms.

You will need to be able to demonstrate track record, expertise, and have a game plan you are capable of executing. If you have those items, network with the people around you who might have an interest in being your partner, particularly those who already know you, your character, and your abilities.

I have an excellent track record with deals I have a completed. I brake down some of the deals I have done in my book The Hiden Entrepreneur Within Me that for sell on Amazon. It just sometimes gets under my skin when a lender who doesn't know what they are talking about gives an investor bad advice because they don't know.

As far as partners, I've had partners in the past and sometime you may think you are a good fit to work with someone then the honeymoon is over and you find out the truth about that partner. So my past partnerships have kept me away from ever doing them again. I know I may be missing the boat but I have not run into that right person. What's sad about that is I sometimes speak to new investors at meetups and some come up to me and ask can they take me to lunch. I always turn down the lunch but give them half an hour of my time.

Wren thanks for responding. Yes, the seller is willing to subordinate his position. I even asked if it can just be a personal loan and not against the property. He also said yes to that. It is a 107 unit park. The property has been poorly maintained with an out of state owner. The management company is really bad and the rents are low for the area. The purchase price would be $1,250MM for a 5-year term.