Posted by Nicci on April 10, 2008 at 18:44:55:
I was willing to put some of my own money into the deal.
Trouble finding hard money financing - Posted by Nicci
Posted by Nicci on April 10, 2008 at 14:01:56:
Hi,
I seem to be having trouble financing this deal…I have to use a hard money lender initially because most banks are requiring 20% down, which I don’t have…
It’s a mobile home park worth $2.5
The owner is willing to finance:
$800K down - for the hard money in first position for a couple of years…
2nd seller carryback with the owners on teh remaining…
The numbers all support the payments, expenses, and then some…The park is very refinanceable at the full market rate right now, much less a few years down the road with rent increases and the vacant sites filled up…
I’ve talked to two hard money lenders - one is going to get back to me, but the other one said they don’t want to do deals with second seller carrybacks in today’s market…
The owners of this park are elderly, own the park free and clear and have owned the park for 20 years - it’s been a good steady source of income, but they can’t keep up with it due to health and age reasons.
I read several posts, including the moderators about buying using hard money and seller carrybacks, yet the reality is while people are willing to do it, I’m having a tough time with hard money lenders…
Is it because of the market changes?
Thanks.
Re: Trouble finding hard money financing - Posted by rochelle
Posted by rochelle on April 24, 2008 at 22:45:19:
I work directly with someone who is excellent at getting deals funded, that are very similar. With the purchasers flexibility, I am confident that he could get you the financing you are looking for. If still interested, send your contact information.
Re: Trouble finding hard money financing - Posted by dave
Posted by dave on April 13, 2008 at 24:25:21:
Yes skin in the game. That is the problem always with real estate acquisitions of that size! The bottom line is get owner financing for a short time period or shop the next deal. Shop 200 mobile home parks and get one elderly couple to be your banker. Don’t settle for the garbage statement you need skin in the game. Thats bull!
When bankers tell me that in the early days I said that fine when I leave Ill will simply get owner financing on the deal then you will be cut out of the deal that fine with me. I got so tired of bankers no I built my business on owner financing instead of bank money. I wrote my offers and offers in my terms. I made sure I made many offers to land a good deal. Most people wont just give you owner financing. You have to earn there trust. A deal the size of 2.5 million will require some prior experience in managing such a size asset of how could the owner trust you with there asset they sell you? So this means you don’t go from a 8 unit mobile home park to a 200 unit mobile home park. Growing pains like that without experience can be disastrous in business! Maybe a realistic approach would be to get a 50 unit park under your belt before going after the 200 unit park. Unless you have 20% to put down and have experience then its a thing of hammering out price, terms and trust with ownership.
Re: Trouble finding hard money financing - Posted by James Harris
Posted by James Harris on April 12, 2008 at 05:12:31:
How much are you willing to put down.
Re:NEED to have SKIN in the game - Posted by Matthew
Posted by Matthew on April 10, 2008 at 16:13:20:
no one is going to finance the deal without you having some $$ into it.