We have a fundamentally sound park under contract in Iowa that doesn’t meet the minimum $500,000 loan requirement to excite the normal suspects in the commercial mortgage brokerage community. Our problem is that we are getting a ton of push back from local lenders in the market because they really don’t want to do a park deal. Can anyone recommend a mortgage broker who works with properties in Iowa and is willing to take on a loan amount of around $390,000?
Our local bankers love any property that has low risk and parks with good management fits that category. Someone needs to educate the soundness of your situation and keep showing you P & L’s and deposits slips to the local banks and they WILL help IF you have a good business.
CharlesD,
We recently closed on a park in Iowa and the loan amount was around $500K and can provide the info of our lender. Let us take this offline.
@CharlesD We use Leah Denesha on smaller loans such as this one. Here website is www.MHCLending.com.
Thank you Brandon. This has been a huge help!
We are still seeking financing on this park. Leah is still working it, but we want to look at as many options as possible. Both local banks have never done a park and they aren’t willing to start doing them now. So that option is off the table. Seller is a top 20 park owner (6,000+lots) so owner financing isn’t an option.
The park is 74 spaces, 77% occupied, being bought at a true 9 CAP (backed up with financials) with good upside. The town is small but we feel comfortable with it after doing our diligence on the local economy (and also based on the opinions of a few trusted advisors).
We still can’t see any reason this deal shouldn’t be able to get done due to a lack of financing. Any additional help would be greatly appreciated.
CharlesD,
It seems like there is a need for financing MHP deals below a certain dollar threshold.
Good deals, but the local banks won’t lend. Seller can’t/won’t finance.
There is SO much money out there chasing yield.
And 9% would capture all the money you need.
If you have MHP experience and skin in the game, we can take this discussion off-line.