Little guy wants to buy big park

[GJS]

We have $400 000 cash.

We stumbled on a $3 million park.

The initial numbers and basic research on the park and area look good. Occupancy > 80%.

Unfortunately, the seller made it clear - no seller financing.

We do not have it under contract yet, but let’s say that we are able to do so.

Questions: How can we get financing for this park? Are there any lenders out there that will lend $3 million with only $400 000 down? Should we get partners? Any other options?

Thank you.

[Marvel_Equity]

Deals of this size can be very desirable. As Frank suggests, check with Pierce @ Security Mortgage. He can give you a good starting point for your options and what it will take. You could probably get a partner if the numbers check out but in that scenario, you might need to get it under contract. You can always assign it but that doesn’t seem logical if you have 400k and its a deal that you can participate I sent you a suggestion via message on one thing you might try as well. Good luck and keep us posted if you are able to move forward with it. It would be great to know all the specifics but I would withhold until there is a purchase/sale agreement in place.

[Marvel_Equity]

Oh yes, 400k is not a little guy but a big one!

[Peter]

Does anyone know how much money (percentage) down do banks typically require to finance a MHP deal?

Can members please share their experiences - what is the lowest percentage down you guys have seen? If possible, please also name the bank/mortgage company.

thanks.

[tmperrault]

You’ll likely have to put down 20 to 30%. Note that I would hold back some of your $400k for reserves. You’ll need some of that money for repairs (expected and unexpected), bringing in homes, rehabbing poh’s, etc. If you’re getting a commercial loan, you may want a park in the $1.5M range.