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Following are the basics, in outline form, of the most secure, saleable, seller financed mobile home notes. Please note this outline is specific for home only/chattel loans in land leased communities. While I understand some of the possible benefits of lease options, they are not sellable in the secondary market.

The MHC lending market has now been strongly impacted by the mortgage meltdown. Always considered to be a specialized asset class by banks, this historically underserved market constricted further as risk weary banks restricted their lending practices in the second half of last year.

This is the decision many mobile home park investors make when deciding on which property to acquire; a park with a higher density of “park-owned” homes or one with “pads-only”/less than 25% park-owned. As the available financing for manufactured housing to individuals intending to place their home in a mobile home park has “dried-up”, there are more and more parks where the park owner rents the both the pad and the mobile home.

The term “up-side” potential is often used in the acquisition of mobile home parks. I hear this from many clients when evaluating a park. They are looking at its’ current cash-flow, potential rent increases, and achieving higher occupancy. The reality of creating greater value quickly is not as common as a steady appreciation.

Many mobile home park investors often ask why lenders typically do not use the total cash-flow from a property with park-owned homes. The answer is that the majority of these mobile homes are considered personal property.

The source of down payment funds to purchase a mobile home park is a question posed by a number of investors on a regular basis. There are many creative buyers looking for ways to acquire a property with as little out-of-pocket as possible.

Many mobile home park investors are looking for parks with a lower than stabilized occupancy in order to take advantage of the infrastructure in place and increase the value of the property with their own efforts. Purchasing mobile homes and either renting them or selling to tenants is the most common approach.

You recognize that interest rates are near historical lows and you have decided that you are going to refinance your manufactured home community. Or, perhaps you have identified a property you want to purchase. Whichever the case may be, you are going to need a loan. But before calling your mortgage banker or lender, the first step you should take is to assess and prepare your property for financing.

With interest rates at historic lows, it is still an excellent time to obtain permanent financing for a manufactured home community. Before selecting a loan, however, it is important for a property owner to assess investment goals and prepare a business plan.

Just as you prepare to take advantage of the low interest rate environment and decide to refinance your existing property or pursue an acquisition with debt, you find that obtaining the level of financing necessary isn't as neat and simple as initially imagined.