Real Estate Investor · Lexington, SC · Member since 2012 · 25 posts · 11 votes
Hello,
I have been a long time reader but this is my first post. Anyway, just wanted to ask if anybody is finding financing for mobile home with land properties.
I have called 30 to 40 of the national and local banks in my area but nobody seems to have an appetite for making loans on these properties to investors. 21st mortgage told me that they would make the loans but after filling out the application, I was denied.
We (my dad and I) have financed our first 12 properties using various personal lines of credit but can see that the end is near at least until some time passes. I have begun to seek alternative financing (private money) but just wondering what you are seeing in your market.
Specialist · Springfield, IL · Member since 2011 · 700 posts · 479 votes
13y
Ryan wrote:I personally wouldn't buy a mobile home as an investment property. Mobile homes tend to depreciate instead of appreciating.
Nothing is ever absolute. I built a park in the mid 70s where the homes are selling for about 10 times what we sold them for new. Like all real estate, location is paramount. In the case of HUD Code homes, the community they are located in makes all the difference.
In the case of the original poster, Aaron, he is looking for a private land setup, often referred to as a "land-home" transaction. Now we are really back to location to determine if it will appreciate.
Rod Are you looking for financing for buyers of the homes in your park, or financing for someone who wants to buy your park? They are two separate types of lenders. George Allen, the national consultant to community owners has both types of lists available so you might want to contact him for either list.
Aaron If 21st Mortgage turned you down, none of the other lenders I know would be willing to help you. They have access to Title I and Title II and that is as deep as anyone will go when buying loans, other than the captive finance companies that generally will not finance homes sited outside manufactured housing land lease communities owned by a related company. Sorry.
Property Manager · Rainier, OR · Member since 2013 · 26 posts · 3 votes
13y
I am also interested to know of lenders. I have my mobile home parks for sale in Kelseyville CA and would like to have some financing info for potential buyers. It has a great income but financing is key to a sale.
Specialist · Springfield, IL · Member since 2011 · 700 posts · 479 votes
13y
Ryan wrote:I personally wouldn't buy a mobile home as an investment property. Mobile homes tend to depreciate instead of appreciating.
Nothing is ever absolute. I built a park in the mid 70s where the homes are selling for about 10 times what we sold them for new. Like all real estate, location is paramount. In the case of HUD Code homes, the community they are located in makes all the difference.
In the case of the original poster, Aaron, he is looking for a private land setup, often referred to as a "land-home" transaction. Now we are really back to location to determine if it will appreciate.
Rod Are you looking for financing for buyers of the homes in your park, or financing for someone who wants to buy your park? They are two separate types of lenders. George Allen, the national consultant to community owners has both types of lists available so you might want to contact him for either list.
Aaron If 21st Mortgage turned you down, none of the other lenders I know would be willing to help you. They have access to Title I and Title II and that is as deep as anyone will go when buying loans, other than the captive finance companies that generally will not finance homes sited outside manufactured housing land lease communities owned by a related company. Sorry.
Real Estate Investor · Lexington, SC · Member since 2012 · 25 posts · 11 votes
13y
Ken Rishel, thanks for your help. I was afraid that 21st would be the only possible bank lender. Oh well, this will force me to get better at raising private money.
Real Estate Investor · Lexington, SC · Member since 2012 · 25 posts · 11 votes
13y
Just wanted to update this thread. I had heard to contact Triad Financial, US Bank, and CU Factory Built Lending. All three would make loans to owner occupants but declined to make loans to investors for mobile home and land properties.
I had an interesting discussion with the local credit union today and will pursue that further.
Investor · Austin, TX · Member since 2009 · 410 posts · 295 votes
13y
Hi Aaron,
Local credit unions and military credit unions are good sources that will likely give you some positive feedback or at least point you in a good direction.
In my area I stay busy by purchasing using private cash or seller held payments.
Congratulations on the first 12 homes! That is no little feat. Also, I love to hear that you are investing with your dad. I would love if my dad also invested.
Real Estate Investor · Lexington, SC · Member since 2012 · 25 posts · 11 votes
13y
Hey John,
I appreciate your reply and have enjoyed reading your blog posts on BiggerPockets as well as your main site for a long time.
Seller financing is the top choice for the investor in my opinion, but I have only managed to get it on one property. (Most of our deals have been REOs.)