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REAL ESTATE Small Mobile Home Park? Financing Ideas?

MickeyDee

New Contributor
Jan 26, 2008
12
1
10
58
West Michigan
I've been speaking with a potential seller of a small MHP with 6 slabs. He owns 4 mobiles and rents the other 2 slab only. The property is actually 3 seperate parcels which may be split 1 more time in the future. Will the fact that it is 3 parcels make it more difficult to obtain financing? Does anyone have any experience financing a deal like this? Should I look for commercial financing? Or 3 seperate residential loans? Price per unit seems to be in the ball park, although the market here (W. Mi.) is in the tank. Any suggestions or comments would be greatly appreciated.
 

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tbsells

Contributor
Jul 27, 2007
304
57
31
Ohio
This is an ideal candidate for owner financing. Offer the seller "x" downpayment and "x dollars per month" for the property. You will be making monthly payments to him instead of the bank. If he won't agree, your best bet is with a local bank or S&L that services their own loans. Big banks probably will not touch a property like this. It doesn't fit the conforming loan criteria necessay to package and sell large amounts of loans. It really doesn't sound like a commercial loan either, probably just a residential investment prooperty loan.
 

jimculler

New Contributor
Sep 14, 2007
63
3
13
Tampa Bay, FL
Owner financing would be great if he is open to it.

If not then you will need 10% down minimum, and it will be underwritten for Debt Coverage Ratio.

If you want more details regarding commercial financing, post up some questions and I will answer financing questions for you all day!
 

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