Real Estate Investor · Rincon, GA · Member since 2009 · 22 posts · 11 votes
I have been searching for 2 years for refinancing for this property. First national bank came thur for me.
Details:
40 year old park
36 acres
185 spaces
150 filled
42 park owned homes
Appraised value = 2.1 million
42 homes value = 309,000
noi = 209,000
cap rate = 8.4 %
Payment = 12,175.00 per month $2,000.00 less than last month
20 year am with a 5 year call in. Don't like this part but that is the best I have found out there.
This deal coming thru has to be a GOD thing!
The worst part of this more than 3 month ordeal was the complete stripping away of my financtial life by the bank. I feel violated because of all the info the bank required to close this loan. I have never been scrutinized to this extent in all of 26 years in borrowing money.
Well this deal is done, now to work on the refi for 2014. Gotta start now and really make this park look sweet for the bank. Rick
Real Estate Investor · Rincon, GA · Member since 2009 · 22 posts · 11 votes
16y
"Congrats Rick! What interest rate? Fixed?
What kind of things did the bank want to see that you felt were onerous?" Jon Klaus
The interest rate is 7% fixed.
I guess the biggest thing was that I have never been subjected to a phase 1 enviromental or a commercial appraisal. These two things gave me a lot of stress ( probably undue stress). Also the fact that it is a $1.5 mil loan warrents the bank doing its due dilligence. Now that God has gotten me through this one the next one will be more relaxed. Also I had been turned down so many times by other banks and private lenders. I should also say that this refi paid off an owner financed note.
The former owner and I will now partner to develop another property of 16 acres ajacent to this one as a 100 space MHP with all park rentals. We are working to bring in city sewage with our own lift station. We will then be able to sell the lift station services to surrounding communities at a nice fee per lot each month. I hope to have more than 500 connections. Water and sewer combined at $50-$75 per month. We need that to pay for the lift station.
Tucson, AZ · Member since 2008 · 945 posts · 45 votes
16y
How marvelous for you, and what a way to end the year. I agree with Jon's kudos on giving credit to the One who deserves it. That helps us keep priorities straight.
Congratulations on your persistance and a great win.
Ofgift
Residential Real Estate Broker · Memphis, TN · Member since 2009 · 18 posts · 1 vote
16y
can this deal be done for rental homes? i have 5 properties that i paid cash for. no liens. total investment -- $200k. looking for a blanket line of credit for all 5 properties.