Financing for new NOI

mobile home university
#1

OK lets say you buy some sort of turn a round park and within 5 months you increase the NOI from say 100K to 150K. Now lets say you bought at a 7 cap and your going to sell at a 7 cap. And every thing looks great the income is on the dirt, you got the spaces filled with owners, raised the rent just a bit across the board and now you want to sell!

Your obviously selling at a higher price.

Heres the question, Is the bank / Finance / Insurance co whatever,

are they going to lend based on the new NOI?

Or are they going to lend based on lets say a 3 yr avg or some variation of this?

#2

Paul,

I have just refinanced a MH park 11 months after purchase and pulled out all my money. If you can provide as strong enough story and data, the banks are very open to refinancing for a higher loan amount. It will also help to have a strong relationship with your bank.

Corey

#3

Corey did you use a Nationwide finance company?

#4

Terry,

Clayton Bank & Trust would be a great choice for MHP/MH’s financing. Steve Waite and Matt Daniels represent Clayton Bank & Trust. They both will be at Mobile Home Millions.

I look forward to seeing you in Orlando and hearing about all the great things you are doing!

Corey

#5

Corey,

I can’t make it my daughter is graduating that weekend So I’ll be at the next one, but if you could answer my other post on Due Diligence I would really appreciate it. You are a enormous help and I wish i could be there just the idea of Like Minds Thinking Alike is a great place to be because we all are willing to help one another and thats what makes this business so great.

#6

Terry, Could you resend me the post and I will answer.

Paul, I hope all is well! I have not talked to you in a while. I am finding banks are lending putting emphasis on 6-9 months of P&L history (it shows how wacky the lenders are getting!).

Corey