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MHRV FINDS LENDER THAT IS COMFORTABLE WITH 2ND NOTE AND DEED ON A OLD SINGLEWIDE AND TRAVEL TRAILER PARK

MHRV Advisors places mobile home park financing loan on a Palmdale, CA park to obtain a new 2nd note and trust deed of $110,000. Vince Reynolds and Norman Sangalang of MHRV Advisors arranged the new financing for the owner.  The park is a  1 Star mobile home park located on approximately 20 acres in NE Los Angeles County (Palmdale). The 20 space park consists primarily of old singlewides and travel trailers with 8 park owned homes. The park had 1 vacancy at the time of financing and is in need of repair. The only amenity at this park is a laundry facility.  The owner purchased the property in  September 2002 and was seeking additional capital to upgrade the park and purchase another park in the area.  Because the property is of less than desirable quality and the owner had purchased the property just over a year ago a new loan from conventional sources was out of the question. 

Reynolds commented,  “A $100,000 loan on a 1 star park is tough proposition even for a loan in the 1st position.  We have a private lender that is very comfortable with all types of mobile home parks and just needs to see the property to make a lending decision, once that is done we can close the deal in two weeks or less”

The loan is interest only at 12% for 3 years and 10 points to obtain.  The points are rolled into the loan balance and the borrower needs only to come up the closing costs for the loan.  “The points and terms seem outrageous, but considering that there is no appraisal, no environmental, no legal, no processing fees and no prepayment fees some park owners in need of quick or hard to obtain loan find this option very attractive.”  Said Norman.

Reynolds continued, “When we add up what it would cost to obtain a convention loan with up front fees and associated costs then add in future prepayment penalties this loan is very competitive for older parks or hard to place loans under $500,000 and will help position the property as a candidate for conventional financing in the future.

Mobile Home Park Hard Money Loan, Trailer Park Hard Money Loan, CA, AZ, NV 
  

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