If you’ve been in the market to buy or sell an RV/MH Park in the last 2-3 years, you’ve probably seen a number of properties marketed with the following buzz words:
Seller/Owner Financing
Owner Carryback
Seller Carry
Seller Take-Back Mortgage
Owner Will Carry (OWC)
Purchase Money Mortgage
You also may have found yourself asking, what does this even mean for me as an investor or an RV/Mobile Home park owner?
The definition of each of these terms can be simplified by the following:
The seller of the RV or mobile home park provides a loan to the buyer instead of the buyer getting traditional bank financing.
Benefits to the buyer:
Easier access to financing, especially if bank loans are hard to secure.
Potentially more flexible terms, such as lower down payments or interest rates.
Quicker acquisition by bypassing lengthy traditional financing, enabling the buyer to take ownership of the RV or mobile home park sooner
Benefits to the seller:
Attracts more buyers.
Provides a steady income stream through payments.
Potentially higher sale price since the seller is offering financing options.
Can speed up the diligence process, increasing certainty of close
This definition provides a solid foundation, but additional considerations arise, especially with existing debt. If you have further questions about selling or buying a park through this method, please don't hesitate to contact our team at: MHRV@partnersrealestate.com
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