Package Deal Fun

After calling almost 3 dozen lenders, I realized I'd have to change strategies to get this tricky deal done.

About the Property


About the Deal

Why I liked it

The package deal gave us flexibility to divide the sales price however we wanted across the two properties, hopefully allowing us to pull out all of our cash in a BRRRR and hold on to two great properties located in one of my long-term growth target micro-markets.

Deal structure

We could not find a lender who would give us favorable terms on a manufactured home as an investment property — we needed both short term and long-term financing. We looked at literally tens of options before finally coming to the conclusion that we needed to split strategies.

We decided to forego the lending on the manufactured home entirely and pay cash to flip it on the retail market (there are lots of lenders who will lend on manufactured homes to a primary home owner). The single family home is a BRRRR using a hard money lender to be refinanced in 3-6 months.

We brought a JV partner to bring cash for the flip and will split proceeds.

Deal outcome

TBD, with both properties undergoing rehab as of November 2021. Early numbers appear to turn out very favorable results.

Single Family Home (BRRRR)

Projected Numbers

Purchase: $65,000
Rehab: $11,000
ARV: $110,000
Rent: $900-$1,000

Actual numbers

Purchase: $65,000
Rehab: TBD
Rent: TBD

Manufactured Home (Retail flip)

Projected Numbers

Purchase: $65,000
Rehab: $26,000
ARV: $170,000
Rent: $1,600-$1,700

Actual numbers

Purchase: $65,000
Sale Price: TBD

Deal Outcome


Lessons Learned

1. Creative strategies are only good if you have cash to make them happen, or lenders/partners who also think they’re good.

2. Bigger lenders are much less likely to do deals that are “outside of the box.”

3. Once again, multiple exit strategies for the win. If you have a deal, there’s a way to get it funded.

4. Having a good relationship with sellers and/or lead sources is so valuable with complicated deals like this.