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Process to Secure a Mobile Home Park Loan Explained by Commercial Real Estate Lender, Pacific Securi
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Added: 03/10/2004
Type: Summary
Viewed: 1243 time(s)
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Process to Secure a Mobile Home Park Loan Explained by Commercial Real Estate Lender, Pacific Securi
An established expert at structuring and origination of commercial real estate capital needs, Pacific Security Capital has developed useful guidelines to follow when securing a Mobile Home Park Loan. By focusing on the following underwriting criteria, the process of obtaining a Commercial Real Estate loan can be streamlined:
1 Determine Eligible Properties:
Eligible properties include Three-, Four-, and Five-Star mobile home parks with a low percentage of RV sites or model homes. Senior and family parks are acceptable. The majority of units are preferred to be double-wide with an underground utility system. The typical density should be 5 7 units per acre with an average lot size of 5,000 square feet. Professional management services are required.
2 Determine eligible property locations:
Nationwide properties are required to have good site access and a highly visible location with heavy traffic is preferred.
3 Identify Terms of the Loan:
* Loan Size - $1 Million $30 Million are standard; larger portfolio transactions are also considered.
* Debt Service Coverage 1.18 x minimum
* Loan-to-Value Ratio Up to 75% on conventional life company programs, 80% LTV on Fannie Mae DUS programs, and up to 90% Loan to Total Acquisition Cost available under FHA insured programs.
* Loan Term 5, 7, 10, 15, 20, 30 and 35 year terms are available
* Amortization Less than 35 years depending on the loan program chosen.
* NOI Calculation A full three years of operating history is strongly preferred. The potential gross income is determined by using the trailing 12-month historical results. Typical expense ratios should range from 35% to 45% management fee underwritten at a minimum of 5% of effective gross income. Minimum replacement reserves of $30 per unit are required.
With Pacific Security Capitals flexible terms and conditions, aggressive underwriting and quick commitments, following these underwriting criteria can facilitate the Commercial Real Estate investment loan process for Mobile Home Park loans.
About Pacific Security Capital:
Pacific Security Capital provides debt, equity and hybrid capital for the acquisition, development, construction, renovation, bridge, mezzanine, and permanent financing of commercial real estate projects requiring more than $1MM in financing. Pacific Security Capital is headquartered in Portland, Oregon with other offices in Seattle, LA, Chicago, Houston and New York. More information about the company can be found at http://www.PacificSecurityCapital.com .
For information about Pacific Security Capital visit: http://www.PacificSecurityCapital.com or contact Mike Myatt at mikem@PacificSecurityCapital.com
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