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Follow on Google News | The Madison Group closes a $3,000,000 Purchase Loan for a Mobile Home Community in TennesseeTMG facilitated a loan with the finalized terms as follows: 78% LTV, 5.99% interest, 20 year term, and a 25 year amortization. The buyer of this property came to us requesting a purchase loan. He is an experienced MHC and commercial real estate owner and saw the upside in this property with under market rents. He also needed to execute a 1031 exchange. The biggest challenge of this loan was lack of documentation from the seller. The seller was unable to provide traditional profit and loss statements or any quality information on the park's expenses. We were provided only six months of bank statements and several months of rent rolls. Another challenge with this loan was that eighty pads were master leased, which is an issue for many lenders. The park's income potential and the borrower's extensive experience were positives in this transaction. TMG worked with the buyer to put together proforma data from the rent rolls and bank statements. We worked with our preferred lender who understood the merits of this transaction. The lender was able to fund the loan at a leverage of 78% with a timely closing to complete a 1031 exchange. "This was a tough transaction for most lenders. We recognized immediately that the loan would need to be placed with one of our preferred funding sources. The final rate was higher than the buyer was used to having on his parks, but he understood the potential of the park and was willing to take a higher rate to capture the upside moving forward." Said Angela Kesselman, TMG's Associate Director of Finance The financing was arranged by Angela Kesselman at The Madison Group. The Madison Group (www.madisongroupfunding.com) is a commercial loan broker and consultant specializing in financing for investor properties nationwide. TMG provides flexible and reliable capital for real estate acquisitions, refinances, and re-capitalizations for a variety of property types including: multifamily, mobile home parks, credit tenant NNN net lease, office, retail, industrial, self-storage and other commercial properties in the United States. Established in 2001, The Madison Group's intention is to provide highly competitive loan products through its superior capital market expertise and quality sources of capital. TMG works efficiently and effectively to get the transaction closed and funded. The Madison Group can be reached at 435-785-8350 or by emailing Angela Kesselman at angela@madisongroupfunding.com. End
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