City water and sewer. I’m only putting this out there since no bank can be involved in the deal. If you don’t have cash, this probably wouldn’t be the deal for you.
Why can’t you get bank financing?
What city/town in northern FL? I may be interested.
Its close to Tallahassee.
bank won’t lend on parks that are 100% POH
Look around on that, plenty of banks out there that will loan with all POH. What’s the local lot rent comps?
What banks did you have in mind? I have never found one bank who will lend on 100% POH parks. Hard money, yes. But Ive have no luck finding banks who will finance these kinds of parks
You are correct. Banks will usually not lend on POH’s and neither would I. Many brokers will always say, “yes I got a bank” but its a unicorn. If the numbers work without the income from POH’s the bank will lend but it seldom does.
If you have a serious buyer, we may be able to help.
We will need:
- 2 years of personal taxes
- 2 years of business taxes
- debt schedule
- real estate asset list
Do you know value of the land itself?
Vanderbilt will finance 100% POH communities and use the home rent to underwrite it as long as we can take liens on the homes. Send me a quality, experienced buyer and we can get it done.
Start with regional banks, I’ve talked to a few in the Pacific Northwest where I am. I’d also reach out to some brokerages. Madison funding group would be a good start. Also, break out the income from each home to home rent and lot rent by figuring out what market lot rent is and then tell the story that half of rent is lot rent the other half is home rent. Also a good idea to always do that with parks to break out lot rent and home rent even if it’s one single rent coming from the tenant. But again I’d start with regional banks and some of the big brokerage lenders.
… at about 7-8%
This is incorrect. Call me anytime to discuss.
We spoke about 6 months ago and your rates were about 2% wider than the market. Feel free to correct me here if I’m wrong so all can see. Where did your last few deals end up pricing? 10 year TSY at 2.36% today as reference point.
We are not in the ballpark your proposed above. Call me anytime and we can discuss a rate for any specific deal you may have.
Full recourse “in the 6s” as you state in your pm is way off market with the 10 year at 2.36.
I appreciate the discussion here. It really is good education for the newer folks. This post is about a 100% POH community so your base rate comparison is way off. I would be happy to discuss with you or anyone further. Call me anytime.
It’s not off at all. You demand full recourse and have liens on the homes. Is that worth 200bps? Not even close in my experience.
Great discussion! Best of luck to you down the road.
Hey @vankad Its frowned upon to go through multiple topics posting your service. Maybe taking the time to respond to someone specifically or take one post to tell about your specific application to the MHP space as opposed to generalities. Thank you