I have a MHP I’d like to make an offer on...but


#1

Hi guys,

I have a park I’d like to buy, owner wants $350k, but broker doesn’t get the feeling he wants to do owner financing and I was really hoping to get it under contract with 10% down and owner carry.

I still would like to try and buy this park and will approach banks to try arrange funding but that is looking like my only hope of owning this park, there is still the option to assign it to another investor if I can’t gather the funding.

My questions:
What options do I have to buy this park if I can only get my hands on 10% of the funds now and the owner isn’t interested in carrying the note?

Do I need to tell the owner how I’ll be paying (loan vs cash) when I place the offer?

Will I lose earnest money if I put this under contract and cannot convert the purchase because I couldn’t acquire a loan or assign it?

I have a decent paying w2 job and could probably have another 10% towards the park in a years from saving but it’ll be long gone by then. Maybe I’m jumping the gun on trying to get a park in this price range but thought I’d reach out for advice just in case there’s a way.

Thanks


#2

Jon,

If you think the deal is very attractive, get it under contract stating you will get new financing. Then you can really dig into the due diligence and find out everything you need to about the property. Make sure your contract gives you a contingency to cancel the deal after a certain number of days (my contract allows me 30 days of inspection period and 30 days for financing). You can always bring up the offer of owner financing after you are under contract. Then you could assign the deal or cancel if needed.

Robbie


#3

Have you sat down with the seller and talked? That’s Step #1. Build rapport, find out what his needs are. Some sellers are hung up on asking price, and will carry a note for a full-priced offer. For others, getting a lump of cash is most important.

If you need more downpayment, and you will for a bank, you’ll need a partner.