Mobile Home Park
Ludington, MI
In May 2021, the Keel Team and investment partners purchased a mobile home park in Ludington, Michigan for $2,086.500.00.
Original Acquisition Price
May 18, 2021
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, Freddie Mac agency debt.
Payout
Cash flow distribution
On November 2021, the first cash flow distribution was $62,209.69.
Capital
Refinance closing date
On February, 9th, 2024 the first refinancing event occurred.
Total
Distributions
Distributions Paid to Investors
The partnership received $272,209.69 in distributions.
Investors Received
Investors received $1,258,666.74 at the refinance closing.
Monthly Distributions Paid Starting in Month 6
- November 2021: $62,209.69
- February 2022 : $29,999.99
- May 2022: $30,000.00
- August 2022: $30,000.01
- February 2023: $30,000.00
- May 2023: $32,499.92
- August 2023: $27,500.08
- November 2023: $30,000.00
- Total Preferred Distributions Paid to Investors: $272,209.69
Capital
Summary
- $46,251.33 - Investor distributions
- $846,642.87- Refinance distributions
- $892,894.20 - Total distributions
- $575,000.00 - Initial equity investment
- $317,394.20 - Total return on capital
Timeframe
- 17 Months = Approximately 1.5 Years
ROI
- 36.76% - 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 $3,084,000.00 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.
