I am in the market to buy a mobile home park and a lot of the ones I have found have dirt roads. From the boot camp, I remember Frank saying that a bank wouldn’t finance a park without roads. How do you figure this into your offer? Do you subtract the price that it would cost to pave or gravel the park from the purchase price? Do you pass on the park?
Blake
Blake -
Frank said a bank would not finance a park with dirt roads.
And that is not entirely correct. It is certainly more difficult if your park has dirt roads, but such parks are typically smaller parks, and the ‘big boys’ (Wells Fargo, Citibank, conduit lenders, etc.) would not finance such a small deal even if the roads were paved.
I bought one park with dirt roads. I had to call nearly every bank in the state and sign personally for the loan, but I got it done. In fact, I had two offers from local banks to finance my dirt-road MHP. All you need is one. 
To your good luck smiling and dialing,
-jl-