The Madison Group (TMG), a leading source of mobile home park financing nationwide, arranged a $1,500,000 mobile home park loan to refinance and cash out on an existing park in Oregon. The 58-pad park is located on 12.6 acres and was 46% occupied. There were 26 park owned homes. The clients came to TMG looking for a loan to payoff their existing sellers carry note, get reimbursed for some capital expenditures, and fund the rest of the capital expenditures to complete the park.
TMG was able to arrange a $1,500,000 loan with a 6.75% 12-year fixed rate and a 30-year amortization. TMG and the client worked closely with the lender to create a loan structure that fit their needs, including an interest reserve and 12 months of interest only payments. The lender also decreased the interest rate by about .50% due to the increasing interest rates. Ultimately, the client was able to lock in a 12-year fixed rate at 6.75%. The loan structure was great for the client, allowing them to cash out of their mobile home park and fund future improvements.
Location: Oregon
Loan Amount: $1,500,000
Interest Rate: 12-year fixed rate of 6.75%
Interest Only: 12 months
Term: 12-years
Amortization: 12 years
LTV: 80%
Recourse
Prepayment: 5,4,3,0