Guidelines For Purchasing Commercial Real Estate
am interested in buying a mobile home park. owner is asking 250000, but will carry 100000. the remaining 150000 will need to be financed thru a bank. what are the guidelines for this type of loan? is it even a possible scenario? amount down? term? any other options i might have?
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This is tuff to answer without a few facts.
What is the value of the Subject Park?
How has the occupancy rate been?
Is this on city sewage or does it have a recycler?
What down payment do you have?
How is your credit?
Just a few to get this one going.
[addsig]
chrestoff
From your own negitations with the Seller so far:
1) $250,000 (asking price)
2) $150,000 Bank First Loan
3) $100,000 Seller Carry Second Loan
Start with the Seller to point out that the Seller will be required to carry the agreed $100,000 loan in second position.
No bank loan will agree to be in second position.
Even with the Seller's loan in second position and the Seller refuses to be in second position ... there are companies that will buy the Seller's second loan in escrow (at a discount). That way the Seller will receive cash at close (it will not be the full $100,000.
Cheryl Lopez