Financing Park Purchase, POH

For those that have financed a park with POH, how did you structure it? I have a park I am in contract for that has about $275K worth of inventory (mostly 2017s). Im thinking it makes sense to me to break it out from the park as I will also be holding the inventory in a separate LLC and managing the accounting separately.

Or do I just keep the debt under the park LLC and order one appraisal. Then once we close, I can still manage operations separately?

The two transactions I’ve done with inventory it’s one appraisal but the bank broke it into two loans (shorter term on the “homes” loan)

We just did a deal for $510K with 10 POHs. 25-space park.
The bank did one loan for the Park at 65% LTV and a small Line of Credit for the POH at 50% LTV.

Thanks for the input!

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The separate LLC for homes is usually a lender driven requirement. I don’t think it helps you with risk mitigation (maybe it does-my insurance broker tells me its unlikely though) but I usually don’t separate the homes unless the lender requires it. I don’t see it as being worth the extra hassle and expense.

I bought a park recently with about $3.5m in homes and they are all owned by the same entity that owns the park. The lender treated the income as the same as lot rent and gave me the same LTV, rate, term, and amortization as they gave the park. Lender was Presidential Bank. Also have done similar constructions with Five Star and Vanderbilt. 1st Bank gave me a LOC for my existing homes on another similar POH heavy park.

Thank you! How did your Apprasial look respective to breaking down the value of the homes and the park? I would ideally like to see two separate values for negotiation reasons.

I thought I’d keep my POH inventory in a separate holding from the standpoint of operations, dealer licensing, and accounting but it sounds like I should reconsider.

Thanks for your insight.

Colliers was the appraiser and they broke out the value of the homes from the real estate. Our lender also used NADA values from Datacomp to further assess the home values.