The Situation
A borrower had identified a compelling RV park acquisition in North Carolina, an 80-site property with solid seasonal revenue and room for operational improvement. The seller was motivated and willing to participate in the financing, a common dynamic in off-market transactions where the seller values speed and certainty over maximizing every dollar at closing.
The challenge was structuring a deal that worked for everyone: the borrower needed creative leverage, the seller needed an exit with ongoing income, and any lender needed to be comfortable sitting behind a non-traditional capital structure.
The Solution
Requity Lending provided the first-lien bridge loan, taking the senior secured position in the capital stack. The seller agreed to carry a second-position note, effectively financing the buyer's equity contribution. This structure allowed the borrower to acquire the 80-site park with a creative capital stack that aligned all parties' interests.
For Requity, the key was our senior lien position. Our underwriting focused on the property's intrinsic value, the park's revenue history, and the borrower's ability to execute. With 80 sites and established seasonal demand, the underlying asset supported our position regardless of the capital structure behind us.
Deal Snapshot
| Parameter | Detail |
|---|---|
| Asset Type | RV Park / Campground |
| Location | North Carolina |
| Sites | 80 |
| Loan Type | First-lien bridge loan with seller-second participation |
| Structure | Seller carried a second-position note, financing the full equity portion |
| Requity Position | First lien, secured senior position |
The Outcome
The deal closed smoothly. The borrower acquired the 80-site North Carolina RV park and began executing their repositioning plan. The seller achieved a clean exit with ongoing income from the second note. And Requity's investors earned consistent, asset-backed returns from the senior debt position.
Why It Matters
Not every deal fits a textbook capital structure. Requity Lending works with borrowers and sellers to structure transactions that make sense for all parties while maintaining the conservative underwriting standards our investors expect. RV parks and campgrounds are one of our specialty asset classes, and that deep familiarity gives us the confidence to move on creative structures like this one.
Have a deal with creative structure? Talk to us or learn about our RV park lending program.
Why Seller Seconds Work for RV Park Acquisitions
Seller-second structures are particularly common in the campground and RV park space for a few reasons. Many parks are family-owned for decades, and sellers are often looking for ongoing income in retirement rather than a single large payout. A seller second provides that income stream while giving the buyer creative leverage.
Campground valuations can also be difficult for conventional lenders because revenue is partially hospitality-driven. When a seller carries a second note, they are effectively underwriting the deal themselves, which signals confidence in the buyer's ability to perform. Bridge lenders in the senior position benefit because the seller's willingness to remain financially exposed to the property signals belief in its cash flow.
At Requity Lending, we are comfortable in the first-lien position on deals structured this way as long as our LTV on the senior basis is within our underwriting parameters and the borrower has a credible business plan.
Frequently Asked Questions
What is seller financing in a commercial real estate deal?
Seller financing means the property seller loans some or all of the purchase price to the buyer rather than the buyer obtaining all financing from a third-party lender. The seller holds a promissory note, often secured by a deed of trust. Terms are negotiated directly between buyer and seller.
Can a buyer use a seller-carried second note alongside a first-lien bridge loan?
Yes. This is a common structure in campground, RV park, and other specialty property acquisitions. The bridge lender holds the first-lien position and underwrites based on their LTV. The seller carries a second note that can fund all or part of the buyer's equity contribution. The bridge lender must approve and be comfortable with the second-lien obligation.
Does Requity Lending accept deals with a seller second?
Yes. Requity Lending has financed acquisitions that include seller seconds in the capital stack. We underwrite based on our first-lien position and the property's ability to service the total debt. Borrowers should disclose the seller second upfront so we can evaluate the complete structure during underwriting.
What types of properties work best with seller-second financing?
Seller-second structures work best with income-producing specialty properties where the seller has long-term ownership knowledge, including RV parks, campgrounds, and mobile home parks. Sellers in these asset classes are often willing to remain financially involved because they understand how the property performs across seasons and market cycles.