Portfolio of 2 Mobile Home Parks
Crookston, MN
In May 2020, the Keel Team and investment partners purchased two mobile home parks in Crookston, Minnesota for $1,150,000.00.
Original Acquisition Price
May 29, 2020
Equity
Initial Cash Investment
Improvement
Summary
Through improvement initiatives such as infilling on vacant pads, renovating run down mobile homes, modest lot rent increases, and others – we were able to improve the portfolio’s operations, increase NOI, and achieve a significant value increase. The financial results of these efforts are summarized below:
Debt
Collateral
Non-recourse Fannie Mac agency debt.
Payout
Cash flow distribution
On November 2020, the first cash flow distribution was $40,421.94.
Capital
Cash out refinancing event
On February 9th, 2024 the first refinancing event occurred.
Refinancing
Event
Investor Distributions
The partnership received $1,554,302.10 from extra proceeds at the refinancing event.
Monthly Distributions Paid Starting in Month 6
7% Preferred Distributions Paid Quarterly
- November 2020: $40,421.94
- February 2021: $12,695.86
- May 2021: $16,864.77
- September 2021: $17,459.05
- December 2021: $18,111.44
- March 2022: $15,868.08
- June 2022: $16,895.80
- March 2023: $16,895.86
- June 2023: $16,895.82
- September 2023: $16,895.82
Capital
Summary
- $189,004.44 - Preferred distributions
- $1,554,302.10 - Cash out refinancing distribution
- $1,743,306.54 - Total Distributions
- $980,000.02 - Initial equity investment
- $763,306.52 - Total return on capital
Timeframe
- 45 Months = 3.7 Years
ROI
- 20.99% - 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 mobile home park.
Refinance
Additional supplemental loan available 12 months after refi (possible additional future returns per refinance loan terms).
Savings
Forced savings of approximately $4,008,000.00 due to the equity remaining in the property after the February 2024 refinancing event.
*Based on refinance appraisal values.
Appreciation
Additional potential equity appreciation as the trailer parks continue 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.
