Commercial Loan plus Seller Financing

[Michael Ballard]

Hello Bigger Pockets Community,

I am a Seattle Investor interested in purchasing a mobile home park. The seller is willing to finance the property with a very large (65%) down payment. My question is  - Does anyone have an experience with or advise on getting a commercial loan for 70% - 75% of the purchase price and then do seller financing on the down?

Or perhaps a small down from me, plus some combination of commercial loan and seller financing.

And advice would be appreciated.

Thank you

Michael

[Jack Martin]

@Michael Ballard in this market, the best financing for a mobile home park with that strategy will be local banks, regional banks, or credit unions. You can find out which banks have an appetite for mobile home parks by asking the MH/RV brokers in your area, networking through other owners of parks in your area, or simply obtain list of the smaller banks and CUs in your area/region and call them to see if they have lent on parks in the past.

As you find them, simply pose the question that the seller is interested in carrying a portion of the sale, and you'd like to know if they would be comfortable lending in first position, while allowing the seller to carry a portion in second position?  MAKE SURE to be extremely candid about that up front!  If you don't get that extremely clear, you may get all the way to the closing table only to find out the lender will not allow it. Also, keep in mind it is unlikely that any lender will allow you to acquire the property with zero cash in the deal.  Lenders like you to have skin in the game.  Otherwise their risk is that you could simply walk away from the deal.