Need seller financing advice

I am planning to sell my 42 space community and am considering carrying the financing. Or I could look at some sort of master lease arrangement. I am flexible. My target market is a newbie who wants to get into the business, but not take on a turnaround situation. What do you think of these terms:

30% down (sales price will be somewhere in the low $800s)
interest only
year 1: 2%
year 2: 3%
year 3: 4%

or perhaps:

1: 3%
2: 4%
3: 5%
4: 6%
5: 7%

Will require some degree of cross-collaterallization with another property.

The park itself is pretty much turnkey, and there is a huge demand for housing in the area. I am far away and wish to move onto other things in life.

What do all of you think of these terms? The idea is for a buyer to get lower payments initially and focus on filling the empty lots as well as, hopefully, a fast sale. They could bring in homes and then refinance me out and maybe even pocket some money. Also, would it be helpful to have a sewer line vid and a Phase 1 and perhaps even a survey all ready to go vs. waiting for the buyer to do them? Any suggestions are more than welcome



Impossible to answer your question without knowing the operational characteristics of your park. Tell me it makes a million a year, and I will gladly take your terms and pay you an extra 20% annual interest or more. Tell me it makes $10,000 per year, and your deal is really bad.

Also, why are you focusing on a newbie? That seems odd. Many experienced buyers are more likely to not waste your time and close. I’d consider your deal, but I am not a newbie and need to know the basics first.

Please share the location (generally), the lot rent, number of paying units, number of POH and TOH and some other basics, and I or somebody on this forum will make you an offer.

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This is why I’m on here asking for advice. What is everything you would want to see in a package to do your initial analysis? I could prepare a file and send them out to people who were interested.

As for location, draw a line from Pittsburgh to Youngstown and I am in the middle. This is the heart of fracking and cracking country in the US.


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Understood. So let’s take a step back. Instead of determining what the terms of a loan would be, let’s figure out what the value of the park should be. I know the area well since I grew up in western Pennsylvania. You said the price is in the low 800s, but any buyer is going to figure out their own price using their own financial models and calculations. Here is what we need to get started:

How many tenant owned homes?
What is the lot rent?
How many park owned occupied homes?
What is the average rent of the park owned occupied homes?
Are there any abandoned or vacant homes that need to be torn down or repaired and how many?
What material are the roads?
Are the utilities city water and city sewer or are there any private utilities and if so what type?
What is the overall condition of the property and is there any deferred maintenance including roadways, overgrown trees, infrastructure issues, etc. what are the revenues and expenses and net operating income?

With that information I should be able to understand what the park is worth and if your proposed deal is reasonable. I would also be interested in purchasing this property. Feel free to send a private message to me and we can exchange more details.

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Working on it. Will have it all by mid-week.

Hi @Rolf me and my partner own a park not too far away from your area. I would be interested in discussing further. You can give me a call directly and I can give you some insight if you are serious about selling. You can email me at or call me at 215.999.1001 (if i dont answer leave a voicemail and i’ll call you back). Thanks.


When you offer special financing, you are offering something of value to potential buyers and likely expanding the buyer pool. This creates the opportunity for an enhanced sales price. How much the price is enhanced ultimately depends on the cost and availability of alternative financing vs seller financing.


I have an info packet ready to send out to any anyone interested. However, could you please e-mail me directly and give me your direct e-mail. Can’t figure out the messaging system through the forum.



I agree with a few others…more information is likely needed to drill down precise terms.

However, generally speaking 30% down and low interest-only terms looks attractive. Keep in mind your own degree of motivation. If you are not so motivated, then be more aggressive with terms (higher down, higher interest, more scrutiny on the cross-collateralization). If more motivated, then price aggressively. Something else to consider: “1st payment not due until 90 days after purchase” = another idea that makes your offer attractive, in giving buyer time to stabilize the Park.

Offering O.F. is certainly attractive, given that securing financing on MHPs can be a bit of a challenge (when compared to other types of commercial or MF properties).