How to deal with bankers?

Just got word today that a $3B refinery is finally going to be built just 30 minutes from my park. Been talking to both Legacy and 21st, but I’d just rather have a line of credit to buy homes on my schedule and from manufacturers that I choose. My idea is to contact local banks and credit unions to see if I can get a line of credit, secured by the park, to buy homes and bring them in. Can anyone give me any pointers as to how to approach bankers? I expect to get a lot of doors slammed in my face, but I would like to increase my chances of success as much as possible.


I would ask this question of your local banks and see what they say. If you own the park without a mortgage, a RELOC should be available I would think. If you do have a mortgage you will have to go out of your way to show the bank you have enough equity for a second mortgage (lien).


Adding to Brandon’s comment; Trying to get a second mortgage/TD on a commercial property is a long shot. At best.

If you have other collateral, you should score a loan, provided the collateral is something the lender likes. Ask.

Or, just borrow against other collateral piecemeal without using the MHP as security for the loan.

We refinanced our park to take out money to purchase new homes. Then went back inside of year and got a second thru same local bank to have additional concrete streets installed. Centennial Bank was very easy to deal with. We looked in to the 21st Mortgage Cash program and were approved but I wouldn’t even consider it after we got the terms. We would have lost our volume incentive discount, then they mark up the home an additional 8% in cost. On top of that they only allow you to mark up the home 5% from invoice. This maybe a good program for those just looking to get homes in to their park but wasn’t worth all the work to only make 5% on the sale. Once approved you can get 3 homes to start, after they start moving they wont hold you up. CSL Financial offers floor planning financing throughout the south east at 8%. I feel dealing with my local bank as the best option.

Rolf - It helps to have a basic business plan to show the bank, which should include history of success and plans for the future including strong cash flow. Most will want at least a 1.2 debt coverage ratio.