Looking for financing options

I have my first park under contract (Midwest) and am looking for financing options, advice or possibly an investor.
There are 2 banks considering financing the park but I have not gotten a commitment yet and it is concerning dealing with small banks that do not have MHP experience and the other concern is that their approved appraisers have never appraised a park before.

About the park.

61 Lots
2 Empty lots
1 Abandoned home
24 POH (rent $650-$800)
Occupancy 100% + waiting list
City Water
City Sewer
Utility costs well below average (Water under $30 per unit)
Paved Roads
27 Acre Property
Room to add 22-24 homes and there is high demand for them.
Seller will carry 25%
Sale Price $1.2M
Current lot rent $250 (last increase in 2014)

I have spoken to a few lenders that have been mentioned on the forum but between this being my first park, it “only” being 61 lots and a few other things I don’t seem to fit their criteria.

Any advice would be appreciated

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Check with John Medernach First Secure Community Bank Sugar Grove IL six three zero 409 724six.

They might be interested in looking at it.
My guess is you need to have skin in the game so you need an equity partner for the down payment and the park financing as well for the balance.

I will give them a call, thank you for the information

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Got a flyer from a company called Stursberg and Fine Capital. 800-741-3314. Know nothing about them but ‘listed’ rates seem enticing.

I was enticed by the same flyer and was not impressed with them

-Contact every small and mid sized lender within 30-60 miles of the park
-Consider contacting a loan broker
-Lenders will already be leery of you with no industry experience, if you don’t have stellar credit and personal finances you may have a very tough sell to lenders. You may need to bring in a partner to get a loan.

I’m in almost the exact same situation. @Noel_S, do you mean an experienced partner or just a partner with equity and more money to bring to the table? At what point do you give up calling banks and go to the loan broker? That’s my dilemma right now - do I keep calling or do I just say screw it and go loan broker route?

Hi Icelander,
I have 2 questions for clarification:

  1. Which state is this park in? Given the loan size you may need to go to a local/regional bank. Many are state specific. We might have better contacts if we know this.
  2. What exactly is the loan term structure you are seeking? You mentioned the sellier is willing to carry 25%. Are you saying he is willing to carry 25% as a 2nd lien?
    -If so that is great, however note that not all lenders will allow that much. The will have LTC and CLTV limits. Every bank is different
    -If the seller wants a 1st, I doubt you can find a bank willing to loan you on a 2nd
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I’m far from an expert on MHP financing, but to the best of my limited knowledge banks like to lend to investors that:
-Have experience in the industry
-Have a high net worth
-Have great credit
-Have high personal cash flow

The less of each of the items you have the harder of a time you’ll have getting a bank loan with decent leverage. If you’re too weak on these items, it may be easier to partner with someone who can fill in your weak spots.

I recently heard a funny line from my banker who said
"we do not discriminate against race, age, sex or religion. But we do discriminate against out of state investors".

Lol… but that was true. They would only give a 65% LTV loan to out of state investors but would have given a 70/75%LTV if I lived in state.


First of all, congrats on the contract! By quick glance, it seems like you may have a winner and that’s awesome. The number of park owned homes may be an issue along with the inexperience factor, but if you have good credit and if you are working a 9-5 job (regular income) at this point, you might have a shot with small or medium sized banks as others have said. I would look in the same town initially as the bank may be familiar with the property. Also, has the seller worked with any local lenders on the park in the past, if so, they may also work with a new buyer. If the park happens to be in OH, I could provide a lead that I’ve worked with on several deals that does allow seller 2nds and credits a portion towards the required down payment. Good Luck!

[quote=“RickB, post:11, topic:14640”]
n OH, I could provide a lead that I’ve worked with on several deal
[/quote]Hello Howard and thank you for the response.

The park is in Minnesota and the structure I’m seeking is $900,000.00 preferably with a 20 year amortization.
Seller will not be carrying a first or second, seller is financing 25% and I will be using other property I own as collateral.
I am selling a commercial building and a couple of houses to pay off seller in full.

Icelander, please shoot me an email at stevendsegal@gmail.com. I might be able to help you out here.