Our business is looking into mobile home parks and wondering about ways other investors have financed.
There're agencies that will finance larger parks especially the ones that have TOHs. For anything small, you'll have to be creative, perhaps ask about seller financing.
@Howard Eastham Partners If you are looking for a JV partner., please put us on your list.
Thanks for the plug Anthony. I was able checkout your website and think we would be a good fit for a JV. Not necessarily on a MHP we're not quite ready for that although we love the idea and still have that as a long term goal. We are in the Nashville market and looking to complete a few flips this year. I would love to touch base and continue the discussion.
@Howard Eastham Partners Sure would be happy to schedule a call to discuss.
@Howard Eastham Partners US Bank has told me they'll finance
@Howard Eastham Partners Our brokerage secures funding for MHPs. We do so through a variety of institutions depending on the location and size. Generally, as @Alina Trigub brought up, we immediately look at the ratio of Park Owned Homes or "POHs". When we calculate value and DSCR we're only considering "lot rent." MHPs are viewed by lenders by the lands ability to generate income. Zero value is given to mobile home units.
The ideal park in terms of lending opportunities would have a minimum of 80% occupancy and have every single home owned by the tenants.
Another basic requirement is that we need a city with over 25,000 people and/or a county with over 100,000 people.
1. What is the general DCR you are looking for?
2. What is the typical amount that the could be financed? 20% down finance 80%? 25/75, 40/60 etc
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing