Summary: The Madison
Group (TMG), a leading national lending source of Mobile Home Park financing nationwide,
arranged the $1.564,000 loan for the purchase of a low occupancy park in
Michigan. The borrowers were looking for maximum
financing on the purchase transaction.
The property had a high number of vacant pads in the park,
exceeding 50%. The borrowers were able
to purchase the property at a good price from a seller that lacked the finances
to add additional homes. TMG was able to
secure a long-term loan with a 20 year term, 20 year amortization, at 75% of
the purchase price. TMG worked with a
lender to become comfortable with the buying group and their ability to fill up
the park. The loan was structured with one
year of interest only payments to help with the cash flow during lease.
Location: Michigan
Property: 203 pad
mobile home park
Loan Amount: $ 1,564,000
Interest Rate: 5.62%
Interest Only for the first 12 months
Term: 20 Years
Amortization: 20
Years
Prepayment: 3/2/1%
declining
LTV: 75 %