The Madison Group, a commercial broker and loan consultant, has facilitated the financing for a MHP/RV Park in Mesa Arizona. The borrower secured a nonrecourse loan with a 10 year term and 30 year amortization. The loan was fixed at 4.5%. In addition, they received some cash out. The borrowing entity was a group of investors, so the nonrecourse nature of the loan was important.
Nearly 40% the income is derived from combination of seasonal and annual RV rental. This created extra challenges to be able to prove income for overall debt service coverage. TMG processing team worked closely with the park manager to be able to break out the income in a way that would satisfy the underwriter. This took a good deal of time and effort, but ultimately the borrowing entity got a loan to fit their needs. The previous loan had a prepay that opened up on December 1, 2014. Everyone involved was determined to fund on that date. The loan funded on time, meeting the clients timing.
“We like MHP and RV financing, even though they have some inherent challenges in proving income,” said Jeff Meierhofer of The Madison Group, who originated the financing. “The borrower’s needs were to secure a 10 year term so they would not have to redo the loan in a few years. Getting a nonrecourse loan done in a timely fashion required our experienced staff to work closely with all parties.”
The financing was arranged by Jeff Meierhofer, Director of Finance at The Madison Group.
The Madison Group (www.madisongroupfunding.com) is a commercial loan broker and consultant specializing in financing for investor properties nationwide. TMG provides flexible and reliable capital for real estate acquisitions, refinances, and re-capitalizations for a variety of property types including: multifamily, mobile home parks, credit tenant NNN net lease, office, retail, industrial, self-storage and other commercial properties in the United States. Established in 2001, The Madison Group’s intention is to provide highly competitive loan products through its superior capital market expertise and quality sources of capital. TMG works efficiently and effectively to get the transaction closed and funded.
The Madison Group and Jeff Meierhofer can be reached at 435-785-8350 or by emailing Jeff at firstname.lastname@example.org.