Mobile Home Park
Southeast Michigan
In June 2021, the Keel Team and investment partners purchased a portfolio of three mobile home parks in Alma, Breckenridge and Hillsdale, Michigan.
Original Acquisition Price
June 4, 2021
Equity
Initial Cash Investment
Improvement
Summary
Through improvement initiatives such as: filling vacant pads, removing and renovating run down homes, modest lot rent increases, and others, we were able to improve the parks’ operations, increase NOI, and achieve a significant value increase. The financial results of these efforts are summarized below:
Debt
Collateral
Non-recourse Fannie Mae agency debt.
Payout
Cash flow distribution
On December 2021, the first cash flow distribution was $98,857.63.
Capital
Cash out refinancing event
On May 24th, 2023 the first refinancing event occurred.
Refinancing
Event
Investor Distributions
The partnership received $2,940,008.21 from the refinancing event. Plus an additional cash flow excess distribution of $98,857.63 was paid to investors at this time. The new debt is non-recourse Fannie Mae agency debt.
Monthly Distributions Paid Starting in Month 6
10% Preferred Distributions Paid Monthly
- December 2021: $98,857.63
- March 2022 : $47,182.40
- June 2022: $47,182.52
- September 2022: $61,782.50
- December 2022: $56,955.33
- March 2022: $58,249.75
Capital
Summary
- $370,210.13 - Preferred distributions
- $2,940,008.21 - Cash out refinancing distribution
- $3,310,218.36 - Total Distributions
- $2,329,990.00 - Initial equity investment
- $980,228.34 - Total return on capital
Timeframe
- 24 Months = 2 Years
ROI
- 21.04% - Annualized cash on cash ROI for the partnership
*And the LP investors stay in the deal after the refinance for infinite returns.
Future Potential ROI Opportunities
Infinite Returns
Infinite returns since all of the original equity investment has been returned, yet we still own the MHP.
Refinance
Additional supplemental loan available 12 months after refi (possible additional future returns per refinance loan terms).
Savings
Forced savings of approximately $5,331,000.00 due to the equity remaining in the property after the May 2023 refinancing event.
*Based on refinance appraisal values.
Appreciation
Additional potential equity appreciation as the MHP continues to increase in value.
Interested in learning more?
Get in touch with us today to learn more about mobile home park investing!
LEGAL DISCLOSURE: All investment offerings have a high degree of risk. Results may vary. Past performance is not a guarantee of future success.
