Structuring Financing for an 81 Unit MHP

[Sam Barr]

I’m in the middle of negotiations on a mobile home park. 

Seller is asking 1.75M. His note with the bank is 1.2M. He wants $300k cash and is willing to carry a 2nd for $250k.

I’m trying to figure out how to get the cash to close if the bank won’t allow that 2nd in place at closing. I’ll need ~$400k if they won’t let us close with that 2nd and ~$150k if they will.

The park is a 10 cap at 1.75 as is and is a 14 cap at purchase or worth 2.5M at a 10 cap after we sub-meter.

There is another 200k in lots we can parcel off and sell, another 720k in value if we add 20 more spots, ~50k in timber, and lot rents can likey go up another $25, adding another $240k.

I can likely bring an equity partner in, but because I can get most of my money out so quickly with the seller’s 2nd and all of my money + 250k out after ~1 yr, I’d like to try and solve the short term capital problem.

Anyone know of a lender who will let me close with the 2nd in place, or someone who can set me up a ~$350k line of credit or perhaps some transactional funding?