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TMG arranged the $5.6MM cash out refinance of a MHP in Kansas

Tags: Mobile Home Park Financing, MHC loans, Cashout loans
Saturday, Mar 20, 2021
by Angela Kesselman

The Madison Group (TMG), a leading national lending source of mobile home parks, arranged the $5.6MM cash out refinance of a family park in Kansas. The property was purchased by the client two years ago.  It is in a growing area and has excellent curb appeal.

The borrower’s goals were to refinance the higher rate first mortgage and get a lower rate to increase cash flow. TMG was able to secure 3 years of interest only payments and cash out of the project to receive some investment capital for use on other projects. This will increase the borrower’s investment yield.

TMG worked with one of their agency lenders to secure the borrower’s request.  The expenses on this park run lower than market, so we worked with the lender to underwrite it with the lower in place expenses to maximize the dollars.  The loan closed with a $5.6M loan fixed for 10 years, 30-year amortization, and 3 years of interest only. The borrowers benefit from a cash out non-recourse long term loan.

Location: Kansas

Property:  175 pad Mobile Home Park

Loan Amount: $5.6MM

Interest Rate:  4.25%

Term:  10 Years with 3 years of Interest Only

Amortization:   30 Years

Prepayment:   Yield maintenance

Recourse:  None



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