Put 2 parks under contract at same time?


#1

I am attempting to put two parks under contract at the same time.

I have the right finances to close each deal with a little bit of seller financing. Then I can put down a reasonable amount on the bank loan. I have 10 years experience as a landlord and have invested passively in 8 mobile home parks. These would be my first two parks to actively manage.

If I am successful, will the banks likely let me close on two parks simultaneously?

Or should I focus on the best deal and see if it falls apart before looking at the other park?


#2

This is a complicated question and it’s hard for an outsider to say definitively.

In general though, I would lean toward pursuing both. If they both pan out, but the bank balks at you buying both, you could likely bring in an experienced money investor on the second to partner with you to bolster your balance sheet and make the bank happy.

It would be a shame to pursue one, have it fall through, and then find that you’ve missed out on the other one at that point.


#3

I agree. I would pursue both. Odds are that one of them will end up falling apart anyway. It happens all the time. In the event they both turn out to be excellent opportunities, there are always ways to figure out the money. If you’re concerned about it, you could ask the lenders you’re working with early on about the other possible transaction. The seller financing thing also isn’t so easy. I’d start to feel out each seller once you’ve built a rapport