Financing For Smaller Parks/First Time Investor in Tennessee


#1

Planning to initiate a viewing of a smaller park (15 lots) in Tennessee, have down payment of 20% lined up, but am unsure if financing is even possible. I have read and heard that many parks are difficult to obtain financing on if they are under 40 lots, however, obtaining a park of that size is not an option for me to start out. Any suggestions of banks/financing options for a park of this size in Tennessee? Owner financing not available.
Thank you


#2

Local & smaller regional banks will entertain it if you can tell the story how you will operate it well and also kiss the note. Plan to go to 6-8 banks to find reasonable terms. Good luck!


#3

I was able to obtain financing on a 9 spot park I purchased for 105K here in Blount County, TN. Have a business plan together and go in with knowledge on how your going to cash flow it. I used a program called Live Plan to build my business plan to show the bank. Be prepared to pay about $3500 for an appraisal along with any other inspections you need such as septic.

Try the small banks. I obtained financing on a 5 year ARM on a 15 year note with no balloon with a small local bank.


#4

Just realized this post is almost a year old. Hopefully my input will help someone else even if its a little late on the response.