HOW YOU CAN FINANCE A CELLULAR HOME PARK PURCHASE

Mobile home parks have a lot of enticing features, but one of the most appealing is the variety of financing options available to purchase a mobile home park. Mobile home park financing offers more inventive vehicle finance possibilities than all other types of real estate combined. And this allows new buyers to the industry to take use of some highly attractive properties with less risk and inconvenience, as well as seasoned investors to take advantage of some extremely attractive buildings.

Seller financing of mobile home theme parks

One of the more appealing aspects of mobile home park vehicle financing is the ability to create a very advantageous loan from your mom appear seller who owns the park outright. Owner financing often comprises the following features: 1) no credit check 2) There is no loan committee. 3) little down payment (as low as 0 percent ) 4) non-recourse 6th to 12th season term 6) A 30-year amortisation period 7) Suspicion was permitted, 8) only a few seconds were permitted, and 9) inventive front-end words, such as interest-only in the early years, were permitted. It's no surprise that seller financing is the primary motivator for most people to start a business — it's simply too wonderful to pass up.

Wrap mortgage loans on mobile home parks

Another popular design in mobile home parks is the "wrap mortgage," which allows the buyer to virtually "assume" the first loan without having to tell the bank. These forms of agreements allow the buyer to avoid any bank panel or credit check, but they come with a risk component in case the lender discovers the property was recently sold without their approval. In such circumstances, the loan may be declared due and payable, and your down payment may be forfeited. So keep this form of finance in mind. Because the actual loan may allow for a "wrap," or construction that permits for a wrap in some circumstances, you should have a skilled legal professional evaluate the note and determine what is allowed.

Master Lease with Option

This is something you might only find in mobile home park sales. Typically, the arrangement is that you rent the entire mobile home park from the owner for a fixed monthly fee for a set number of years, with the option to buy the area at a pre-determined price during that period. This is a very useful strategy to employ when the mobile home park is so poorly managed that it cannot support any size observation. You scramble to make rent and save money once the hire begins, and if you structure it correctly, you quickly have a large positive cash flow every month. Then you have two choices for landing your job: 1) offer for sale

A bank loan for mobile home parks

All real estate has a typical visitor attraction. You visit multiple financial institutions, explain why your loan is a good one, run it by their loan committees, and conclude the programme with one or two offers. The standard down payment is 20%, the loan duration is 5 years, and the money is recourse. Fixed-rate and variable-rate interest are both frequent. The beautiful thing about bank funding is that it is so "secure" — financial institutions are strictly regulated by the United States government, and you can always trust that you will be treated fairly. Make certain that the type of bank you choose matches the type of loan you require. You can get a loan for anything less than $1 million.