How Does Seller Financing Work On a Mobile Home Park?
Seller financing is pretty simple and straightforward. When purchasing a mobile home park, the buyer will typically agree to pay the seller with installments and an interest rate. Since mobile home parks are often difficult to acquire through traditional real estate channels, this is probably the most common way that buyers finance their park.
Advantages of using seller financing to sell your mobile home park
As the owner, seller financing has many benefits. First and foremost, if you know the buyer, you do not necessarily need to run a credit check. There isn’t a loan, so you don’t need to worry about the buyer going through a bank.
You can also sweeten up the deal for a potential buyer. For example, the agreement could include interest-only payments for the first couple of years while the buyer makes improvements on the property. You can also ask for a lower down payment with a higher interest rate. These are some of the advantages of seller financing if you are working with a reputable buyer that you can trust.
Risks of using seller financing to sell your mobile home park
There are some risks that are associated with seller financing. Let’s say that there is an outstanding loan on the park or that the park was used as collateral for another type of financial situation. If the buyer for some reason backs out of the agreement, then the seller still will be liable for any outstanding debt that they have on the mobile home park.
In real estate in general, seller financing can fall through on an agreement in about three percent to five percent of deals. Even though seller financing may let the owner make an exit from the property quickly, there are still risks associated with seller financing on mobile home parks.
Lastly, there is the tying up of liquidity. Instead of parting with your mobile home park with cash in hand, you will likely end up having to wait to use the liquidity from the mobile home park.
Can a fast cash offer help you sell your mobile home park?
A fast cash offer is often a great way to sell your mobile home park. First and foremost, if you go through Mobile Home Park Instant Offer, you will be working with a qualified investor who is interested in purchasing your property. You will also get access to liquidity so that you can move onto your next venture. Additionally, we can take most trailer parks that are in a variety of different conditions. If you are looking to get out of your mobile home park, work with Mobile Home Park Instant Offer for a fast cash offer.