Lenders who include Home Rent

Hi All,

I have an off market opportunity presenting a bit of a challenge. The park is about one third POH and two thirds TOH. Existing lot rent is well below market but the POH all-in rent is at market.

The park is great from a cashflow perspective; however the numbers don’t make sense when excluding home rent.

Does anybody know lenders who can include home rent as part of the underwriting. The loan is around $1.3 million. Thank you!!

Hey Surfandfish,

I’ve run into this situation before, definitely tricky. You might want to check with lenders like Bellwether or Lima One; I’ve heard they sometimes consider home rent in underwriting, depending on deal structure and experience. Worth a shot.

Good luck with the deal!

I always search the banks in the area and rank them by total assets and number of branches. Then I eliminate the large national banks an the small community banks. Then I call each of the 10 to 20 that are left over and ask them. The remaining banks typically only service a small area, so any recommendations that I give in my area will differ in your area. You really should be on the phone with bankers to answer this question.

Also it is not as explicit as “do you include home rent or not.” Sometimes the bankers do not know the difference. So, just present your business plan and numbers and have them make a proposal to you. Then take the best proposal.

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