OfflineI am negotiating the purchase of a mobile home park. The seller has agreed to sell for $300,000.00. He will also finance the property with $60,000 down. He will not accept a substitution of collateral for the down payment. He needs the money. The park nets appoximately $80,000 per yearand has upside. He is trying to work with me, but I do not have the money, and my credit is currently weak. Does anybody have any ideas where I can get the $60k? I do not think the seller would give a 2nd position mtg. Thank you.
__________________
Bring in a partner and split profits
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
you may want to fill out some info on your profile so that other investors here can know a little about you and where you're from so that they can network with you.
Do you have any family members of friends that may be interested in loaning you some money from their savings acct, 401, etc. for a generous interest rate?
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
Thanks for the response. I do not have friends and family with money. I understand the theory of finding a private investor with money. How do you find this investor or hard money lender? I have had sf rentals before but my financial situation is different and what worked then will not work now. My numbers are good, the seller is old and owned the mhp for about 20 yrs, and he is trying to work with me. I just have to produce the downpayment to fulfill his need.
an off-brand, local bank, or start building your buyers list and ask any of 'em if they would be a private lender for you (since they have funds). Or, maybe those buyers would buy that park from you, you can wholesale it, and everybody wins?
Advertise for an investor to buy a 10% interest in the park for $60,000. If the park nets $80k/yr, that's a 13% cash on cash return. If the numbers aren't good enough for the investor, you could sell them a 20% interest for $60k which would be a 27% cash on cash return. If you are going to do this, make sure you have it under contract so you don't get snaked. Make sure you structure the payments on your 80% to allow for taxes, insurance, maintenance, vacancies, etc.
"I do not think the seller would give a 2nd position mtg."
Don't make the mistake of assuming what the seller will or will not do. You don't ask, you don't get. If the seller is willing to go in second position, you could try to find someone to loan $60k in first position at 10%, interest only, due in 2 years. Then you have the profits from 2 years of running the park to pay of the $60k in 2 years and the seller goes into first position after 2 years.