| A real estate investor in Salinas was under contract to purchase a unique property with a hard funding deadline due to a 1031 exchange requirement. Unfortunately, the investor was having difficulty qualifying for a conventional loan due to the nature of the property - a Mobile Home Park out of Porterville, CA.As the subject was legal, non-conforming and mixed-use, it had zoning and improvement aspects traditional lenders would challenge, and exposures insurance carriers would oppose. Fortunately, HanoverMC is seasoned in the manufactured housing and mobile home park space, having funded purchases, refinances, rehabs, ground-up construction and fix & flips of both, and are familiar with the nuances and attributes of the subject property type, thus we were able to quickly get comfortable with the property. Additionally, we got comfortable with the investors, their business plan and with their ability to execute. The investors anticipate spending about $30K on renovations, increasing rents to market rates and refinancing into a conventional loan upon two years seasoned operating history. Furthermore, HanoverMC led a collaborative effort between the insurance company, City of Porterville and The California Department of Housing and Community Development identifying and assessing all risks, answering all questions, and helping all parties meet requirements necessary to secure the appropriate coverage. As such, we were able to facilitate the borrower’s acquisition of a unique property in a short time frame under competitive terms [25 Due-in 5 @ 8.5% with No Prepayment Penalty] and with appropriate insurance/coverage to protect the interests of both the lender and investor. |
