Summary: The Madison
Group (TMG), a leading national lending source of RV Park financing, arranged
the $3,300,000 purchase of an RV Park in Utah. The final loan terms were a rate
of 4.45%, with a 10-year fixed rate term and 30- year amortization.
The client’s goals were met by providing a cash out loan to
buy out the partners. The borrowing entity owned
the park over 20 years and created a great deal of equity. The park is owned
free and clear, so it was necessary to structure a maximum cash out loan to pay
off the other partners. The park is currently managed by one of the owners who
remained as the sole owner. TMG obtained financing that allowed the
manager/owner to become the owner of the RV Park without partners.
TMG negotiated the best loan terms with a quality lender and
assisted the borrower during the loan process. There were some legal circumstances
that needed mitigation regarding the borrowing entity but TMG worked with the
lender and underwriting to get the loan closed in a timely manner. The rate is
low and provides excellent cash flow. The borrower is pleased with the process,
the professionalism of the lender, and overall execution of the transaction.
Property: RV Park
Loan Amount: $3,300,000
Interest Rate: 4.45%
Term: 10 Years