Financing

Hi,

This is my first MHP and finally I am in for a MHP located in Indiana with 26 pad out of 24 owner owned and 2 empty. I am a Canadian and would like to know the finance options I can get in USA. I am willing to pay 20-30% down and the selling is not ready to finance so I have to look for bank or some private vendors. The amount I am looking is approximately 150K. What are the best options I have, any vendors I can approach to get this done or I need to approach the bank to get this deal? What are the interest rates I am looking for? Any advise much appreciated.

Thanks

RK

RK,

I would suggest calling all the local banks in the area of the park. I normally do this when I have a park under contract. I ask for the VP CCommercial Loans and ask them if they do loans on mobile home parks. If they do, I strike up a friendly conversation and just give them a brief summary of the park. If they don’t loan on mobile home parks, I’m not going to talk them into it so I just say thank you and hang up.

Once I get 4-5 interested banks, I either mail my portfolio to them or set up appointments to meet them.

To give you an idea on the last park I purchased. I called 20 banks. 5 said yes they would be interested. Of the 5 only 2 said that they would do the loan on my park. Not the best ratio but local banks will lend on parks…if you find the right ones.

Dave

Dave G. is exactly correct. That’s how to do it. And that’s what I love about the forum – people giving people great real-life information.

Awesome. Thanks Dave. I really appreciate your help! I will do it as advised.