Private Lending & Conventional Mortgage Advice

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Joseph Gray
  • Rental Property Investor
  • Lenoir, NC
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Where Can I Find $100K For Mobile Home Park

Joseph Gray
  • Rental Property Investor
  • Lenoir, NC
Posted Dec 9 2019, 15:43

Found a mobile home park which I would love to purchase for the estimated cash flow and low liability.

It's land only with lots divided out and 8 mobile homes in the park.

The seller is renting them for around $150/Month, but I think they could easily rent for $210/month or more ($1,680/Month).

The seller is asking $100K, but I feel she may accept less. I don't know how to go about finding financing for this deal as I'm a little cash strapped right now with another home. Any ideas/advice would be absolutely appreciated! :)

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Jordan Moorhead
  • Real Estate Agent
  • Austin, TX
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Jordan Moorhead
  • Real Estate Agent
  • Austin, TX
Replied Dec 9 2019, 16:08

Heloc, family friends, seller carry, credit cards?

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Account Closed
  • Specialist
  • San Antonio, TX
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Account Closed
  • Specialist
  • San Antonio, TX
Replied Dec 9 2019, 17:34

What area is it in?

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Jason Graves
  • Rental Property Investor
  • San Diego, CA
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Jason Graves
  • Rental Property Investor
  • San Diego, CA
Replied Dec 9 2019, 21:34

@Joseph Gray

Ask the seller if she will carry any part of the loan.

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Frank V.
  • Wholesaler
  • Phoenix, AZ
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Frank V.
  • Wholesaler
  • Phoenix, AZ
Replied Dec 9 2019, 21:56

You can find some great ones for $60k in Phoenix AZ 

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Thomas Oliver
  • Summit, MS
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Thomas Oliver
  • Summit, MS
Replied Dec 10 2019, 00:21

@Joseph Gray do you have any equity in any of your properties? Do you have a good relationship with your local bank? If you have either of these and the property Aprasel is good. You should be able to 100 fin. By holding equity in place of cash.

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Alina Trigub
  • Rental Property Investor
  • Glen Rock, NJ
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Alina Trigub
  • Rental Property Investor
  • Glen Rock, NJ
Replied Dec 10 2019, 06:59

@Joseph Gray

Beyond what others already mentioned, consider either partnering with someone with  money or wholesaling it. How many lots is it subdivided into total? Is it only 8 or more?

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Joseph Gray
  • Rental Property Investor
  • Lenoir, NC
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Joseph Gray
  • Rental Property Investor
  • Lenoir, NC
Replied Dec 10 2019, 09:32

@Joel S. Hello! It is located in Coward SC

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Joseph Gray
  • Rental Property Investor
  • Lenoir, NC
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Joseph Gray
  • Rental Property Investor
  • Lenoir, NC
Replied Dec 10 2019, 09:32

@Jason Graves I will ask them! Thanks!

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Joseph Gray
  • Rental Property Investor
  • Lenoir, NC
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Joseph Gray
  • Rental Property Investor
  • Lenoir, NC
Replied Dec 10 2019, 09:32

@Jordan Moorhead Thanks!

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Joseph Gray
  • Rental Property Investor
  • Lenoir, NC
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Joseph Gray
  • Rental Property Investor
  • Lenoir, NC
Replied Dec 10 2019, 09:33

@Frank V. Wow that's awesome! What are the cash flow amounts on those monthly?

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Joseph Gray
  • Rental Property Investor
  • Lenoir, NC
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Joseph Gray
  • Rental Property Investor
  • Lenoir, NC
Replied Dec 10 2019, 09:34

@Thomas Oliver Thanks! Currently most cash is tied up in a home with no mortgage note. I'm looking to do a cash out Refi though and maybe be able to recoup those funds to make this deal work

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Joseph Gray
  • Rental Property Investor
  • Lenoir, NC
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Joseph Gray
  • Rental Property Investor
  • Lenoir, NC
Replied Dec 10 2019, 09:47

@Alina Trigub Thank you! Yes, it is 8 lots total. The land only is owned however, not the mobile homes which sit on the lots. Thanks!

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Alina Trigub
  • Rental Property Investor
  • Glen Rock, NJ
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Alina Trigub
  • Rental Property Investor
  • Glen Rock, NJ
Replied Dec 10 2019, 10:23
Joseph,
Then as I said earlier, bring it to a few local REI clubs and see if you can find people to potentially sell it to or partner with. Note the latter is a lot more involved! 

Originally posted by @Joseph Gray:

@Alina Trigub Thank you! Yes, it is 8 lots total. The land only is owned however, not the mobile homes which sit on the lots. Thanks!

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Federico Peralta
  • Specialist
  • Aberdeen, NJ
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Federico Peralta
  • Specialist
  • Aberdeen, NJ
Replied Dec 10 2019, 10:48

@Joseph Gray

You should email @Brandon Turner he might want to join 😁

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Replied Dec 10 2019, 15:48

@Joseph Gray. So you’re just buying the land and the trailer are paying paid rent ?? If so ask the owner to finance you until you’re able to get financing.

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James Hamling#1 Saint Paul Real Estate Forum Contributor
  • Realtor
  • Twin Cities, MN
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James Hamling#1 Saint Paul Real Estate Forum Contributor
  • Realtor
  • Twin Cities, MN
Replied Dec 13 2019, 14:29
Originally posted by @Joseph Gray:

Found a mobile home park which I would love to purchase for the estimated cash flow and low liability.

It's land only with lots divided out and 8 mobile homes in the park.

The seller is renting them for around $150/Month, but I think they could easily rent for $210/month or more ($1,680/Month).

The seller is asking $100K, but I feel she may accept less. I don't know how to go about finding financing for this deal as I'm a little cash strapped right now with another home. Any ideas/advice would be absolutely appreciated! :)

 Wholesale, Wholesale, Wholesale! 

Trailer parks are a COMPLETLY different best in REI, on level of difference from SFR as Mini-Storage, it is truly that different. To start with, a 12cap is a lame duck in parks market. I am assuming you don't have a valuation and prospectus report as it sounds like you were placing rent's by gut feel, parks run by data and #'s, never gut. You also mention it is either in development or decline as 8 lots open, you can not start capitalizing on rents until you first have occupancy meet and I can tell you it is a lot harder to get empty lots filled than it is a SFR occupied, unless you have the $800K kicking around to buy and place trailers to than carry back financing to buyers's/tenants? All this and more is why I say WHOLESALE, WHOLESALE, WHOLESALE because you need to get more knowledge and experience in the market before diving into the deep end with just a hope and a prayer.

If it's in MN I am open to looking at it and I will give it to you straight. Hell, may be one I or those in my group already passed on. Parks take years to develop to full occupancy, and even though it's dirt their IS maintenance costs and things that go wrong. Think replacing a sewer main sucks, imagine doing that for 20+ units, or repaving roads which surprise surprise roads do wear out. There is a lot of different things that come up and when they do it's tens or hundreds of thousands. 

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John Woodrich
  • Flipper/Rehabber
  • Minneapolis, MN
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John Woodrich
  • Flipper/Rehabber
  • Minneapolis, MN
Replied Dec 13 2019, 15:12

100K investment for the possibility of $1,680 per month??  I am new to MHPs but am I the only one who doesn't think this is much of a deal??  Seems that any deferred maintenance would tank this pretty quickly...