I currently own 3 mobile homes, the 1st one I bought, I completely remodeled and added to it, which is my current residence, and its paid off. The 2nd one I'm about half way through the rebuild, then the 3rd one came to me, which I partnered with a friend on and it only needs a few cosmetic items fixed. All 3 of these have been owner financing with no money down. My credit score is ok I have a decent paying job, I make about 35k per year, but I have a large family so it takes most of my income to provide, in other words I don't really have any money saved, I've been trying to do everything out of pocket. It would only take about 10k to complete the 2nd mobile home, I can get about 55-60k for it once its completed, but it's going to take me another 4-6 months for that, (the 8 unit) I would like to get, is fully occupied and has a rent roll of 42k per year, I would really like to get this to help me grow faster exponentially! Any advice would be greatly appreciated, thanks in advance!
If your credit score is good you could probably get approved for a commercial loan and leverage equity from your paid off home as a down payment. Another option is to see if you could put a deposit towards the 8 unit so it buys you some time to complete and sell your other mobile home.
Go talk to a local bank, anything over 5 units will finance itself with its debt service coverage ratio and P&L, meaning, its way less dependent on you personally, and as long as its a good investment and you have the liquidity ( or the capability to access it thru your paid off home ) for down payment they will take it. They do take a peek at your personal finances, bank depending, to make sure you can handle it. You should be fine, get your ducks in a row & make a play at the place pending financing. Good luck. PS, why does it take 4-6 mo to reno a mobile home?
I do the work myself, I can't afford to hire a contractor yet. I'm hoping that once I sell my second one I'll be able to have at least 15k in an account to get some of the work done by someone on any property's going forward. (I enjoy doing construction work) I appreciate your advice, I'll be sure to go sit down with a few lenders in my local area next week and see what they can tell me.
I have always been under the impression that banks wouldn't use mobile homes for collateral/equity! I'll have to see about it next week! I appreciate your advice.
Sorry to bring this up but where are you going to get the down payment money.
Well that's what I'm trying to figure out, if all else fails I'll use the funds from the sale of my 2nd mobile home