All Forum Posts by: Charles B.

I agree with Louis. Commercial lenders tend not to be very picky about those sorts of transactions as long as the numbers support the final sales price.

You might also want to consider using "transactional funding." The funding source will probably require a closing agent that is quite familar with those sorts of deals.

Sounds like a great deal! As far as things to keep an eye on, I would suggest:

Permits
Water
Sewage
Any maintaince invoices (who are the vendors; how old is equipment; is there a service contract in place?)

Well good luck with what seems like a real DEAL!

Hi Dory,

After re-reading my post I suppose that did sound a little vague (unintentionally). By "sources" I mean that I have found a private lender that acutally seems willing (provided he likes the likelihood of the deal closing) to put forth earnest money without being a equity partner in the deal.

Most importantly, I have found some smaller bank/credit union sources for unsecured loans which can be used to cover "soft" costs such as appraisals, earnest money deposits, inspections and the like.

Yes, believe it or not there are still a few banks providing unsecured loans. I would not plan my entire investing career around them, but they are lending at the moment.

Feel free to send me a private message and I will share with you what I can.

I hope this helps.

Before ending I did want to reiterate though that the best option regarding earnest money in my mind continues to be "no earnest money deposit." These "sources" are only for those instances when I absolutely can not get the seller to agree to waive the EMD in exchange for a "fast" closing.

In the past month I have acutally uncovered 2 or 3 different sources for funding earnest money requirements. Let me know if you are interested (assuming you have not already created solid joint venture relationships with other investors that can cover the earnest money for you).

Thanks

I also have a recommendation to someone that has worked well in my experience. Please send a message for the contact information.

Nick thanks for the information, and I have requested to join the probate group.

For those who are interested in selling leads, I would be interested in any and all commercial property in probate leads. They are not nearly as common as SFH, but they are out there, and tend to sell for quite a discount (in my experience).

Thanks again.

First, thanks for your contributions to this thread Rachel. Its been helpful even for those of us who are far from new to investing to hear the mobile home side of things.

I am curious. With so few institutional financing options, have you seen Lease Options, Subject to, or seller finance deals work in mobile home investing?

I will add one more category of projects where a master lease works well (at least in my experience). I use a master lease when I need a year to establish or re-establish the financials for a property. I am currently working on an event center. Its a great money maker, but due to the age and health of the current owners, I can not obtain great financing because there are virtually no current financials.

The master lease lets me control and run the property for a year, while creating attractive (if I know what i am doing) financials to position it for attractive financing or a refinance in a year.

I love the idea of private funding for any deal. I make my living hunting around for private funds for deals. However, out of curiousity, aren't there ANY national or regional lenders for mobile home parks? And if so, what are typcially the lender guidelines?

I would imagine you are talking about a high interest rate and lower LTVs, but I could be wrong. I appreciate input from anyone with more mobile home park financing experience than I have.

You are correct, their advertising certainly leads you to believe that they provide the funding for the deals, but that is not strictly correct. The money comes from the end buyer.

I know that may sound confusing, but they do not fund deals. Not in the traditional sense anyway.

Now once you understand the system you will learn that you dont' need funding. Instead you simply need an end buyer that can get funding.