MHRV Advisors Secures Park Owners Future and Enables Acquisition

MHRV Advisors has arranged three new loans for a private investor. Two of the loans were fixed rate with cash out refinancing and the third was acquisition financing for a mobile home park purchase.

Park #1 - Long Term Fixed Refinance with Cash Out

Desert Hot Springs, CA - October 12, 2006 MHRV Advisors has completed the cash out refinance of the Desert Palms MHC in Desert Hot Springs, CA. Within 2 years of purchasing the park the borrower replaced a 6.75% adjustable rate loan with a 6.14% interest rate fixed for 30 years, due in 30 years. The borrower was able to pull approximately $1,000,000 in cash out of this park and retire an adjustable rate loan with a lower fixed rate loan and have on a slight increase in monthly debt service.

Park #2 - Long Term Fixed Refinance with Cash Out

Murrieta, CA - September 1, 2006 MHRV Advisors has completed the refinance and cash out loan for Murrieta Palms in Murrieta, CA. Within 2 years of purchasing this park the borrower retired an adjustable rate loan with a new 30 year fixed rate loan at 6.30%. The borrower again used his equity to pull approximately $1,000,000 out of this park with only a slight increase in monthly debt service because of the low fixed rate.

Park #3 - Purchase Loan

Needles, CA - September 1, 2006 MHRV Advisors has completed the acquisition financing of the Palms River Resort in Needles, CA. 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"

Vince Reynolds and Norman Sangalang sell and finance mobile home and RV parks exclusively and have sold or refinanced over 100 MH and RV parks over the past few years. For further information please contact Vince or Norman toll free at (866) 459-MHRV (6478) or via email at info@mhrvadvisors.com.