Need financing for MHP purchase ASAP

Real Estate Investing Mobile Homes & Mobile Home Parks
1

I will keep this as brief as possible. I have been a CRE member (now w/different log-in) for many years and hope someone can provide some great advice once again!

I have the opportunity to purchase another MHP for approx $175k. This property is REO and I do not have much time to pull together my financing options. I have the cash available; however I am in the process of purchasing a new residence for my family and prefer to have these funds for improvements of the properties. If I was to pay cash, I am concerned that the financing for my residence may be compromised… not sure though.

I already own a MHP which is valued around $200k. This one I own outright with no liens.

The agent I am working with wants to have me sign the P&S Agreement asap, preferably as a cash offer to strengthen the offer and believes this will be accepted.

I do not want to risk the purchase of the home for my family which is expected to close in the next 30-60 days.

I have the cash though would prefer to hold it for improvements on my personal home as well as the MHP.

I own a MPH now, as well as a few other lots free and clear.

Ideal situation would be a form of lending which I would be able to access soon, without affecting my personal home purchase.

Any ideas would be greatly appreciated!

2

Loan on the MHP

Could be that I could help you with the loan for the new MHP you’ve found.

3

You could always refinance the MHP you already own in order to raise the cash necessary for the new purchase.

4

Refi of MH not necessarily simple

Reading your post again I’m not clear on what it is you own and if it’s just one mobile home then refi of that is not simple or quick or sure.

While I do know of some lenders for tin-cans in parks they’re not going to want to loan on just anything tossed their way.

5

RE: MHP Financing

Thank you for the feedback. To be clear, I currently own a small Mobile Home Park with just 8 spaces (4 private owned, 4 park owned). This property is valued around $200,000 and is owned free and clear. I also have ownership of a couple other single family homes.

I am looking for a loan in the amount of $175-$190k for the purchase of another MHP. The park I am trying to purchase right now has 10 spaces. All mobiles are park owned. The value of this park is well in excess of $200k.

I understand I have the ability to apply for a loan using my current deed(s) as security however I am looking for the quickest and best solution.

I of course can provide much more info including estimated income, expenses, and may other details once I have the best financing source determined. Hopefully this clears up any confusion.

Thank you!

6

Where’s the MHP you’ll buy?

In what state is the MHP you want to buy?

7

Continue the conversation with John.

I want to point out something that might be completely obvious or might be lost in the rush.

If you secure a loan for a MHP it could very much impact the purchase of new home for the family if you are getting a loan for that home. You will likely be asked about loans outstanding and other details. If you suddenly show a new loan, one that looks to be high LTV on an asset that is hard to sell, the lender might take a dim view on the home loan and cancel any commitment.

There are legal and clean ways to avoid the issue. Failing to answer questions truthfully is not the path to go down. Explaining to the family why the home deal fell apart at the last minute also needs to be avoided.