What has been your experience in terms of using private lenders to fund a MHP purchase? Good, bad?
What are the minimums/maximums for what they will loan? Typical interest rate? Terms? Recommendation of companies?
Thanks!
I am a private (BRIDGE LOAN) lender and I would loan up to 75% for no longer than two years at 10%. I would expect you as the buyer to come up with the other 25% and quickly move to permanent financing. I would look closely at your creditworthiness, experience, and collateral equity. I only lend, however, to clients I am familiar with. There are lots of companies that do Bridge loans. You might inquire through Bigger Pockets.
Thanks @volare71 for your input.
Private lenders are great if you need funds quickly. The rates are higher than what banks offer. If you want long term debt, the rates are too high.
Of course this is a different asset class, but in the past I would offer private loans to house flippers and charge up to 16% interest for a 9 month term. It was worth it to the flipper because we could close in a week and the homes needed work meaning they were ineligible for bank debt.