Joining us for episode 3 is Art Tuverson. Art works as a managing director for Berkadia’s mortgage banking platform. He is a debt and equity capital provider dedicated to the commercial real estate industry on a nationwide basis, with emphasis on the Manufactured Housing Community and RV Resort industry. He has over 19 years of experience that have led to a broad customer reach and deep domain expertise in property valuation and analytics.
Blake and Art first dive into Texas and property tax reassessments. According to Art, most Mobile Home Parks have fortunately escaped a lot of the large tax increases. They will generally look to the appraisal for the property taxes. When it comes to underwriting, they will look at tax comps. The mobile home park industry is a smaller pond than other industries like multifamily in which the assessors are more focused on.
They discuss a recent California condo conversion loan that Art had worked on. This conversion loan is a good option for park owners that deal with rent control. It allows them to unlock trapped equity in mobile home parks by condo-mapping the property and selling the individual lots to the residents. However, this does require the right lender.
They touch on some underwriting factors from the lenders that have become more standardized. The lenders are focusing on segregating the revenue park owned home P&Ls from the property level P&Ls for more accurate valuations on a property level. This leads to better loan proceeds.
As of the beginning of 2021, the agencies are seeing inflows 2-3x there average run rate for supplemental loans. In order to moderate this increase there has been a slight increase in pricing, they are being stingier on credit acceptors, and they are limiting discretionary cash-out refinances.
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