Financing Options

I have noticed a few times of people floating around here the idea of doing some personal financing.

My situation as it stands, I have a MHP under contract about 19 spaces and a leased restruant that is on the same Parcel.

The park is in Augusta GA, demographic wise it has the four M’s; Masters, Medical, Military and Manufacturing.

The park is on city water and sewer. Lot rent is $120/month competition is around $200/month.

Restruant is in its 3rd year on 10 year lease. $1,200/month for 2 more years then it will jump to $1,500/month

I can easily see myself getting into a 25%+ cap rate on this park.

I have it under contract for 150k. I have completed all the due diligence by the numbers from frank and daves due diligence book. I also just ordered the home study coarse to continue to assist me.

I am waiting on the phase one to come back which I expect to get it by friday.

The current owner is a chineese lady who’s husband owned it and ran it but recently he died and she hasn’t been able to run it as well due to language barriers.

They owe 60k on the park, when they bought it they paid 225k for it owner financed at 8%

With my 50k down payment the plan that was proposed was that the note holder will take 25k and finance the other 25k at 7% for 3 years and they will take off 10k.

I was then to carry a second note with the current owner with 75k financed for 5 years at 6% interest.

The contract stipulates that the sale is contingent on agreeable financing terms when I intiated the deal as everything was proposed.

After I pumped over 6k into the park and I am ready to close the note holder (previous owner) for the current owner decided they wanted to be paid out and didn’t want to transfer loans or start another note.

The local banks won’t mess with the park because the owner dealt in cash and mixed it with her accounts so there isn’t any true accounting done.

So, my options is now to either come up with the full 150k, in which I have 50k on hand to manage and looking to get a 100k loan fully backed by the MHP or get a loan large enough to cover the current note which will be 25k.

Would anyone be interested in offering some financing options?

I’m coming back to this to leave me email address if anyone has any information on a possible financing solution.

Quick overview.

park for sale 150k

appraised at 170k

down payment 50k

Desired financing option

100k @ 5 years on 6%

Monthly Payments $1,933.28

Earnable Interest $15,996.81

Closing has been stalled due to the last minute financing issues so any advice maybe just something to point me in the right direction will be good.

My email address is

It sounds a good deal. But I would be a little cautious putting all the savings you have to the deal which the bank would not want to touch.

From my experience, a park which you have more leverage on the banks money usually wins you more. Usually, a park this size could be acquired by using maximum 30K of your own money.

I have not posted in years, I am not the expert that a lot of people in here are, I have only bought 9 parks and have interest in 4 others, but not knowing the expenses to get a realistic cap rate, have you thought of equity financing? I have done it both ways and it has worked out well with 3 partners more so than 50/50 but 60/20/20. I would be interested in the 20% for $12k if you can get another partner, or I can do 30k hard money if you think you can really get near a 25 cap, with capital expend, vacancy, insurance and realistic management, maint. expenses on the ledger.