Financing Down Payment

mobile home university
1

I have a question about financing the down payment. If I needed to put down $140k are there going to be any issues with the bank if i get the money from someone or a hard money lender? I have always been told that I had to provide the Down payment. but, I know people borrow the money from family or a hard-money lender to make the deal. i just dont have any experience with doing this. Any advice or avenues for doing so would be greatly appreciated.

I have a great opportunities but I need more capital. I am hesitant to Pull my Retirement account for this too, especially since my account is receiving 10% year to date…

2

Typically, banks require to be in first position. If you are sourcing funding from family and friends they’ll want to be secured as well.

They can be secured with a second mortgage/trust deed or with an equity position or a combination of those two.

Make sure it’s all in writing. Memories tend to get fuzzy when things don’t go as planned.

Your bank will want proof of your down payment long before escrow closes.

Make sure you are crystal clear with your investors as to how they make money or how they could lose money. Anything else invites lawyers, etc.

If you have very little or no skin in the game and no experience in the MHP space, what are your investors really getting themselves into?

BTW, if you’re getting 10% in your retirement account, what are your expectations for this project?

One more thing, you could lend some of your retirement money to an experienced operator in exchange for a preferential return.

Just a thought…

Keep us posted.

3

Search this forum for bank fraud down payment and you will find a few threads on this topic. In general, the bank will not permit you to borrow the equity you are putting into a deal. If you try to do it anyway and hide this from the bank you may end up in very hot water.

See, e.g.: