I’m in the middle of negotiations on an 81 unit mobile home park.
Seller is facing his bank note not renewing due to bankruptcy in another company. Asking 1.75M. His note with the bank is 1.2M. He wants $300k to help cover bankruptcy costs and is willing to carry a 2nd for $250k.
I’m trying to figure out how to get the cash to close if the bank won’t allow that 2nd in place at closing. I’ll need ~$400k if they won’t let us close with that 2nd and ~$150k if they will.
The park is a 10 cap at 1.75 as is and is a 14 cap at purchase or worth 2.5M at a 10 cap after we sub-meter.
There are another 200k in lots we can parcel off and sell, another 720k in value if we add 20 more spots, ~50k in timber, and lot rents can likey go up another $25, adding another $240k.
I can likely bring an equity partner in, but because I can get most of my money out so quickly with the seller’s 2nd and all of my money + 250k out after ~1 yr, I’d like to try and solve the short term capital problem.
Anyone know of a lender who will let me close with the 2nd in place, or someone who can set me up a ~$350k line of credit real quick? I’ve got good references