[Phone Booth]

[ QUOTE ]
Sure, you WOULD be correct, except that institutional lenders tend to shy from the type of RE deals that I like to do - mobile homes, mobile home parks, manufactured homes on land, and new development, and that type of thing. Thats not all I do, but right now its most of what I do.


[/ QUOTE ]

Is it just me or earlier in the year commercial mortgage shops were pretty much handing out free money against exactly the collateral type you're describing? Or are you already leveraged to the hilt and looking for more of mezzanine/equity type of funding? Assuming what you're doing meets HUD requirements, you can even get FHA to chip in with cheap mortgage insurance. I'm assuming it's a question of leverage, since there's no way you can get, at least in the US, the kind of return you're describing without taking extremely leveraged positions to begin with, but in that case I'm not even sure why you need to borrow very much extra, unless you like to keep those partners happy for potential future ventures - this may be a valid motivation if the alternative is a subordinate or mezzanine loan with less flexible terms at 12-15%.