I am looking to finance a mobile home park in Illinois. I have 20-25% to put down. Purchase price is $295,000. Cap rate is ~12%. Can provide more numbers and financial background on myself. I have great credit ~790 (last I checked). No bankruptcy or defaults on loans. Any recommendations on banks/lenders willing to finance the loan would be greatly appreciated. Thanks.
Hey @Frank Calderone ! I am a newbie..figuring out how I am going to finance my 2nd property has been my #1 hurdle.
A friend from BP, offered me some advice--he said, quit being a baby and call some banks. He also said that talking to banks/lenders is way more informal than you think, you just have to get over your fear of looking stupid/getting rejected and do it.
So anyways...I recently walked into a couple local banks, asked to speak to someone about REI financing. I sat down, introduced myself, told them what I was trying to do, and asked what I needed to do to be a desirable candidate for their loan. They spelled everything out for me and now I am clear with what I have to do.
The banks I went to all said to have: good credit score, 20% to put down, a Debt to income ratio under 43%, 6 months of the mortgage saved up in savings/checkings/roth account and 2 months of my current mortgage saved.
Im sure you situation may be different because it's a mobile home park BUT the solution is the same. Call up some banks and see what they require. Remember that they want to loan you money, so the phone call/visit is a business lead for them!
Thank you very much @Justine Scheuher! I really appreciate it and will take your advice!
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