I am new to all this but live in Florida along the gulf coast where mobile home parks are abundant and accepted. Most parks sell homes around 10k to 150k and some of the homes are even in the 1070s. I can see where the people own their own homes and pay lot rent can be a money machine. Even if the home is empty they collect the lot rent. I am wondering if anyone can explain to me if possible how you can purchase a MHP with no money of your own or very little down. I see some assumable mortgages and some owner financing. What are some of the better ways of getting the parks.
Thanks in advance
AJR
Sorry 1070s = 1970 mobile homes
ajr - One financing option for mobile home parks is a loan that allows you up to 90% financing. Commercial lenders want the buyer to have some skin in the game.
Loans for purchasing mobile home parks work like this
Credit Score
680 and up - 75% first + 15% second - can be seller carry, etc. = 90%
625 - 679 - 75% first + 15% second - can be seller carry, etc. = 90%
575 - 624 - 70% first + 20% second - can be seller carry, etc. = 90%
You may have a seller second up to 25% of the property value, but you the buyer must have 10% equity (down) in the purchase.
Loans are fully amortized up to 30 years - no Balloons.
Minimum debt coverage is 1.25%
Minimum of 75% occupancy
No more than 25% of the spaces can be RV’s
Loan amounts $100,000 - $3,000,000 (higher on a case by case basis)
All in all, the financing is not as difficult as you might believe.