Can a person with no money and fair credit buy a mobile home park?
by Author on Friday, March 26th, 2010 | 5 Comments
Looking for multi unit mobile home part with no money down with fair credit in the western seven states, preferably with city utilities.
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Mobile home parks are excellent investments if you really understand the business and it is a business. You can buy with fair credit and no cash down. The best candidates would be a long-term owner who wants to retire. That type of seller is going want some cash but if there is no mortgage on the property than you can work a deal. If the property has a mortgage on it and you do not want to use your cash then consider the strategy of corporate raiders. They finance the purchase of the takeover with the assets of the company they will be acquiring. Translating to mobile home park strategy, you can have the seller sell maybe vacant lot(s) or mobile homes on the premises and then you can using a 120 close have the right to advertise for new tenants prior to closing and that would be your cash outlay. Another strategy would be go contract (while the property is in escrow) with a third party like a satellite tv provider or vending company, phone company for cell towers to install new equipment on the property and have them close the day of your closing and use that cash for down payment. The seller can take a 90 promissory note and remember to close 2 days after the rents are collected because that will give you maximum cash at closing.
You should be looking for parks with 30 or less homes on it. See Deals on Wheels by Lonnie Scruggs. He lives in Virginia Beach area.
Good luck
I don’t see how that would be possible. You would need some up-front money, and an excellent credit rating.
The problem with no money down is it translates to "no equity but full liability." Get yourself a business plan to make sure it’s going to bring you the kind of revenue you’re looking for. If you can show that to the bank, you will probably get the loan; however, you need to review it first. Is it really a profitable venture???
The reality is that investment property typically requires at least 10% down. There are rare occasions when you can get the 100% but your credit has to be close to perfect, you have to know somebody at the bank, or you need to have a partner with cash.
You want to buy the whole Park? Or a mobile home IN the park? Which?
I know of a park for sale but you better have 15% down and excellent credit for the other $650K