All Forum Posts by: Robert M Erickson

Hello, 

Does anyone have experience with FHA Title 1 loans for New Manufactured Homes to be set in a mobile home park? I am currently working with a mobile home park investor doing seller financing on New Manufactured Homes in their parks. However, we would like to find some conventional financing options if possible to help free up some capital. Would also be interested in packaging the seller financing loans for sale if there is a secondary market for manufactured home financing.

Any help or direction would be greatly appreciated! 

Thanks!

Robert

Thanks for the recommendation Joel I appreciate it!

Hello, 

I was curious if anyone had experience with pricing a drug rehabilitation facility. The property is in Southern California and was leased to a tenant operating the facility but they had some financial issues and moved out. Another company could come in and start operating immediately because of the property set up and licenses in place. We are just trying to figure out market value to see if selling is a good option at this point. Would the value be based on cash flow, number of rooms, licenses in place etc?

Any help or thoughts would be greatly appreciated. Thanks!

Rob

Thanks for your responses @Gordon Cuffe and @Kyle J. !!

Gordon I will send you a PM. 

Kyle, great information thank you for sharing! 

Just to update the thread where I am at, I found one lender that would do $100K but the condo needed to be a FNMA approved project which mine is not. My condo is actually an Own-Your-Own which is similar to a co-op. I did find one other lender willing to provide a loan, but it is what he called a "long term hard money loan". The terms would be $100K at 6.75% for 5 years with a 5% prepayment penalty which is not ideal. That loan has a finance cost of $18,100 over the 5 year period so I am not sure it is worth is especially if I only need the money short term and would have to pay a $5,000 fee to payoff the loan in the first year. 

Thanks for your input Harjeet!

Do you know any lenders that do HELOCs on rental properties in California? I have been able to find them for a primary residence but not rental property. 

Hi All!

I currently own a rental property (Own-Your-Own Condo in Orange County) that is paid off ($750K ARV) and rents for $2,800 per month. Do you know of any banks or lenders in CA that will lend $50K-$100K on this?

I spoke to a mortgage broker who said I would probably need to do a hard money loan at a loan amount this small but was hoping someone in Southern California knows of a small bank, credit union or lender that would be willing to lend on something like this. Short term loan with no prepayment penalty would be ideal but open to all options.

Thanks for the help!

Robert

Hi Chad, 

Thanks for your response! Yes it seems there is a lot of speculation and have heard a few different answers from lenders I have talked to in my area. I was referred to a real estate attorney but they don't specialize in manufactured financing so in search of another one at the moment. I wish we operated under Napoleonanic Law as we are helping the consumer with affordable housing options that they would not be able to purchase if they went the traditional route (or if they did their interest rates would be very high). I know they are trying to update the law with the choice act because the Dodd-Frank has had unintended consequences that for some reason the Consumer Finance Protection Bureau wont rectify...

Former Congressman Barney Frank, who co-sponsored the legislation, said he was “regretful to realize” its negative impact not long after Dodd-Frank became the law of the land.

In a 2011 letter to a constituent, Frank wrote:

“I do not think it is necessary to include manufactured housing as part of our effort to prevent abusive mortgage practices, and I am now working with my staff to see if we can find a way to make a change that would deal with the problem you correctly point out… “

In doing more research, it looks like we may need a Mortgage Loan Originator (or become one).

"For any individuals or entities that make more than 3 loans per year, the law requires that a Mortgage Loan Originator be involved to complete the transaction."

If anyone has any input or insight it would be greatly appreciated! 

Hi All!

I recently became involved in the mobile home park industry with a new partner who has been doing it for a few years. As we are fixing up the parks and selling manufactured homes in spaces, we have been using seller financing since traditional financing is very difficult and expensive for the buyers. Seller financing helps us sell the homes much faster. 

In doing these seller financing loans, do we need to be compliant with the Dodd-Frank Act?  

If so, does anyone have a package or know what is needed to be compliant?

Thanks in advance!