Finding the right park lender and negotiating a park loan has always been more nuanced than other real estate loans. But from 2008 to 2009 the turmoil in the banking and lending industry has made park loans even more complicated. Unfortunately parks as an asset class had nothing to do with the lending crisis but is affected by the overall instability of the capital markets. Despite market conditions MHRV Advisors was able to provide the owners of this park with a very favorable loan with rates and terms that fit their investment needs and return on investment goals.
The park is 100% occupied year to year because of the excellent location in San Diego County. The park consists of 15 mobile home spaces and single family home. The park is in great shape aesthetically and streets that are in good condition. The overall expense ratio is very low because there are no amenities and parks generally have lower expense ratios. Adding to that low expense ratio is the fact that most utilities are passed through. The park is on city water and city sewer. The new $650,000 note and first trust deed variable rate loan is fixed at 6.5% for ten years and fully amortized over 30 years.
This new mobile home park loan gave the park owners the opportunity to finish property improvements such as new street lighting and installing new water meters to increase the income and lower expenses.
MHRV Advisors is the leading park brokers specializing in Mobile Home Parks For Sale, Park Financing Loans in addition to RV parks for sale & loans throughout the counties of California, Arizona and Nevada and have personally sold or refinanced 100’s of Mobile Home Parks and RV Parks since 1993. For further information please contact MHRV Advisors at (858) 456-5110 or http://www.mhrvadvisors.com
http://www.mhrvadvisors.com/
