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MHRV Advisors Secures Purchase Loan in Needles, CA

MHRV Advisors completed the acquisition financing mobile home park loan for a Needles mobile home park.  MHRV Advisors completed this $2,995,000 acquisition loan in just 14 days from loan application to close of escrow.  The borrower used the cash out from the other two properties for a down payment and to partially fund a 65 space addition to the park and construction of 100 enclosed storage units. 

“The borrower wanted to secure his future for many years to come, yet still acquire one more park for his portfolio.  We were able to find a lender offering a fixed rate loan for 30 years with the ability to borrow additional funds down the road should the need occur.” Said, Vince Reynolds  “Most fixed rate loans constrain park owners with prepayment penalties and prevent 2nd TD’s or the ability to borrow from the park if the need ever occurs.  These new loans allow up to 70% total financing, so as the borrowers equity in the mobile home park grows so does his ability to borrow against it, and the existing fixed rate stays as-is, it’s a real win-win scenario.” 

Norman Sangalang commented, “While working on placing the long term financing on the two parks, the borrower was presented with an opportunity he could not pass up, we shifted gears and increased the loan amounts on the two parks to facilitate acquiring the third park.  Since mobile home parks and RV parks are all we do, we did not have to waste time trying to find a lender that could complete the deal in the allotted 14 days.  We have done several deals in the past with this lender, and we were confident in their ability to close on time and assure our client that he could tie up this opportunity.  Because of the substantial amount of upgrades and expansion that will occur to this park over the next couple of years, the new loan had to have some flexibility so we needed an adjustable rate loan with no prepayment penalties.  Because of the current condition of the park it would not qualify for the fixed rate loans we placed on the other two parks.   Once the upgrades and rehab is completed we will obtain a loan like the ones on the other two parks”

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