Mobile Home Park Financing?

What is the current status of getting loans for mobile home parks?
Is it possible? How much down do they want?

Looking to start small, in the 6-10 unit range, $120,000-$200,000.

Also, if financing is hard to get, how would you go about trying to get owner financing other than ‘asking’? Meaning, how to sweeten the deal for a seller who isn’t really advertising or considering owner financing, tyring to get them to consider owner financing (if a commercial loan isn’t available).

Thank you in advance for the advice!

Hi,

You will need to put between 30 and 40% down now depending on location and income / size!

A mobile home park is substancially land with utility improvements per space!

A owner carry park is a possibility with a negotiated down payment as this might be great for smaller parks!

             GR

When considering the purchase of a mobile home park as compared to an RV park there are many factors to consider. While mobile home parks and RV parks are often sold by the same brokers and are combined in one facility, they are not the same and both require different amounts and types of management.

The following comparisons are for Overnight/Destination RV parks as compared to the typical mobile home park in which the lots are rented out on a monthly basis. In many cases, the seasonal or extended stay RV parks will have more of the qualities of the typical mobile home park rather than those of the Overnight/Destination type RV parks.

Length of Stay: Mobile Home owners are in the park permanently or at least until they sell their home and move somewhere else. RVer’s are in the park for usually a week or less. The longer a home or resident stays in the park, the more likely it will have the qualities of a mobile home park and the less time a home or resident stays in the park, the more likely it will resemble the operations of an RV park.

Management: This is probably one of the most significant differences between RV and mobile home parks. In most cases, it takes less time and manpower to run a mobile home park than an RV park. There are several factors for this:
With a mobile home park, the manager will typically see the residents of each space only once per month when the rent is paid and anytime there is a problem. However, with an RV Park you may have a new camper in the space every day or every few days. You may have to acquaint them with the park, the facilities, and in many cases the area. How to get here or there, where to eat, etc.

In addition, many RV parks will have showers and restrooms that need to be cleaned several times during the day. Most mobile home owners have their own showers and toilets.

In Mobile Home Parks, the manager usually only maintains the common areas and the residents maintain their own spaces, etc. However, in an RV Park, the manager will not only maintain the common areas, but should check each space to make sure it is clean before renting. As before, these spots may have a different RV’er each day and so it is ongoing.

Ease of Movement: While it will cost an owner of a mobile home 1-2 thousand dollars or more to move their mobile home out of the park and set it up somewhere else, the owner of an Recreational Vehicle can hook up, move and reset their RV up in another park in a couple of hours or less and for the cost of gas. Thus, you have to work much harder at keeping the RV’er satisfied with the park if you want to keep them there.

Eviction: In a mobile home park if you have someone that is not paying rent or causing other problems, you will have to go to court and deal with the judges and it may take several weeks to have them evicted out of the park. However, in an RV Park, the rent is usually paid in advance and if it is not paid, you should be able to have the RV removed immediately for lack of payment or other issues. These laws differ from state to state so make sure to check first to stay legal. :shocked :biggrin

Thanks regards - Jensyn