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Phil Querin Q&A: Landlord's Right of Access to Install Submeters


Question. We are sub-metering a property and have given all the appropriate notices including the 24 hour notice for right of entry to their space. About 20 residents have denied our access to the site and are asking us to provide them with exact dates on when we can enter their space. We could do that however as with all of these projects delays may happen and it would require the possibility or multiple 24 notices to change the dates of entry. Do the residents have right to do this, if we have given them a 24 hour notice with a window of 30 days for which we could gain access to their lot. Also if we relented on the original plans and 24 hour notice and we hand-posted a 24 hour notice for the right of entry when we know which sites we will be working on the next day is that an option?



Mark Busch Q&A: Stay and Pay" Court Agreements"


Question: We have a younger gentleman who has lived in the RV section of our park now for around six months. He checked out well in our application process, but now has not paid rent for two months. He says that he was laid off from his job, but is starting a new one and that his mother has agreed to help him catch up. But that was several weeks ago and still nothing. We don't necessarily want to evict him, but this obviously can't continue. Any advice?


Mark Busch Q&A: Stay and Pay" Court Agreements"


Question: We have a younger gentleman who has lived in the RV section of our park now for around six months. He checked out well in our application process, but now has not paid rent for two months. He says that he was laid off from his job, but is starting a new one and that his mother has agreed to help him catch up. But that was several weeks ago and still nothing. We don't necessarily want to evict him, but this obviously can't continue. Any advice?


Financing Your Community

Financing Your Community

 

Feature Article: Anthony J. DiMarco and Gerard D. DiMarco

 

Almost every community owner at some point in time will experience the need for financing of some kind. There have been many ups, downs, and complexities of the financial markets over the past 25 years, and the impact these fluctuations have had on available loans has been huge. In this article we will address some of the important issues that community owners may face during the lending process.

 

Lenders are back after the credit crunch of a few years ago

 

Since the financial crisis that began around 2007, the capital markets began to slowly re-emerge in late 2010 and early 201 for manufactured home community lending on a wide scale. Today's lending market, combined with historically low interest rates, is the strongest it has been in years. Lenders are eager to provide long term fixed rate, non-recourse loans with 30 year amortizations on manufactured home communities. We are currently helping a customer refinance a five year commercial mortgage-backed security (CMBS) loan that closed in March 2010 (our records indicate it was one of the nation's first CMBS loan post financial crisis) with a ten year fixed rate loan at less than 4.25%. The existing loan the borrower is paying off had a rate of 6.5%.

 

A few other real world examples include recently helping a client lock a ten year fixed rate loan at 3.51%! Additionally, another client just secured a 4.2% long term fixed rate, replacing a rate of 6.5% from the previous note. The market has improved dramatically!

 

There are currently numerous lending platforms and options available for community owners including conduit lenders (CMBS), life insurance companies, Fannie Mae, Freddie Mac, credit unions, and traditional bank loans. There are also a wide range of product options and features available in today's financial market including bridge lending, short term floating rate debt, interest only, mezzanine debt, and flexible prepayment options. With so many options available, finding loan that suits your specific needs as a manufactured community owner is possible.

 

How to obtain a mortgage

 

There are two major components that lenders review when analyzing a loan request; the guarantor, and the property itself. On the guarantor side, most lenders look for an individual to have a credit score of at least 600 and a sufficient net worth. Even though most of the loans we offer are non-recourse, our lenders still look for those minimum requirements. On the property side, as a general rule, our lenders require a minimum loan amount of $500,000, a minimum debt service coverage ratio of 1.25x, and paved roads. There are also numerous aspects to manufactured home communities that make them unique compared to other asset classes.

 

Every community can qualify for a loan!

 

We have financed deals with low occupancies, private utilities, and low populations. However, having a better understanding of what lenders prefer can be helpful in assessing your property, or a potential acquisition, in preparation for a new loan. The type of loan and benefits of the mortgage depend on the checklist" of items a lender reviews. Some of the key components that determine the rate and terms of a loan include:

 

  • Community quality
  • Borrower experience and equity
  • Loan-to-value (LTV)
  • Financial and occupancy trends of the property
  • Infrastructure quality - roads

Financing Your Community

Financing Your Community

 

Feature Article: Anthony J. DiMarco and Gerard D. DiMarco

 

Almost every community owner at some point in time will experience the need for financing of some kind. There have been many ups, downs, and complexities of the financial markets over the past 25 years, and the impact these fluctuations have had on available loans has been huge. In this article we will address some of the important issues that community owners may face during the lending process.

 

Lenders are back after the credit crunch of a few years ago

 

Since the financial crisis that began around 2007, the capital markets began to slowly re-emerge in late 2010 and early 201 for manufactured home community lending on a wide scale. Today's lending market, combined with historically low interest rates, is the strongest it has been in years. Lenders are eager to provide long term fixed rate, non-recourse loans with 30 year amortizations on manufactured home communities. We are currently helping a customer refinance a five year commercial mortgage-backed security (CMBS) loan that closed in March 2010 (our records indicate it was one of the nation's first CMBS loan post financial crisis) with a ten year fixed rate loan at less than 4.25%. The existing loan the borrower is paying off had a rate of 6.5%.

 

A few other real world examples include recently helping a client lock a ten year fixed rate loan at 3.51%! Additionally, another client just secured a 4.2% long term fixed rate, replacing a rate of 6.5% from the previous note. The market has improved dramatically!

 

There are currently numerous lending platforms and options available for community owners including conduit lenders (CMBS), life insurance companies, Fannie Mae, Freddie Mac, credit unions, and traditional bank loans. There are also a wide range of product options and features available in today's financial market including bridge lending, short term floating rate debt, interest only, mezzanine debt, and flexible prepayment options. With so many options available, finding loan that suits your specific needs as a manufactured community owner is possible.

 

How to obtain a mortgage

 

There are two major components that lenders review when analyzing a loan request; the guarantor, and the property itself. On the guarantor side, most lenders look for an individual to have a credit score of at least 600 and a sufficient net worth. Even though most of the loans we offer are non-recourse, our lenders still look for those minimum requirements. On the property side, as a general rule, our lenders require a minimum loan amount of $500,000, a minimum debt service coverage ratio of 1.25x, and paved roads. There are also numerous aspects to manufactured home communities that make them unique compared to other asset classes.

 

Every community can qualify for a loan!

 

We have financed deals with low occupancies, private utilities, and low populations. However, having a better understanding of what lenders prefer can be helpful in assessing your property, or a potential acquisition, in preparation for a new loan. The type of loan and benefits of the mortgage depend on the checklist" of items a lender reviews. Some of the key components that determine the rate and terms of a loan include:

 

  • Community quality
  • Borrower experience and equity
  • Loan-to-value (LTV)
  • Financial and occupancy trends of the property
  • Infrastructure quality - roads

Phil Querin Q&A - What To Do When Resident's Children Reach 18 Years Old and Remain In Community


Question. We have residents whose son just turned 18, and will continued to live at home for the time being. So far, he has not caused any problems, and we have no reason to believe he will. But now that he is an adult, should we require that the he go through a criminal background check and formally apply to become a tenant?

Phil Querin Q&A - What To Do When Resident's Children Reach 18 Years Old and Remain In Community


Question. We have residents whose son just turned 18, and will continued to live at home for the time being. So far, he has not caused any problems, and we have no reason to believe he will. But now that he is an adult, should we require that the he go through a criminal background check and formally apply to become a tenant?

First Commercial Property Article: The Importance of Rules and Regulations in YOUR Community

Stating the obvious: Rules and Regulations (aka Guidelines For Living) set forth living and maintenance behavior which a MHC Resident must follow while living in your community. These R&Rs can include items like maintaining yards, limiting on-street parking, allowing or prohibiting fences, cleaning up after pets, deck sizes, night time quite hours and a whole host of other items governing how your community is maintained and used.

First Commercial Property Article: The Importance of Rules and Regulations in YOUR Community

Stating the obvious: Rules and Regulations (aka Guidelines For Living) set forth living and maintenance behavior which a MHC Resident must follow while living in your community. These R&Rs can include items like maintaining yards, limiting on-street parking, allowing or prohibiting fences, cleaning up after pets, deck sizes, night time quite hours and a whole host of other items governing how your community is maintained and used.

Phil Querin Q&A: Section 8 Housing: Can It Require Landlord Repairs To The Home?


Question. We have a tenant that rents one of our Studio Apartments, recently she requested to rent one of our mobile homes that just became vacant. She informed us that she was approved for Section 8 and also that there would be an inspection of the Unit. We would like to know if we would be required to pay for any changes or upgrades due to the result of the inspection.

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