Mobile Home Park
Jefferson County, PA
In March 2018, the Keel Team and investment partners purchased a 61 lot mobile home park in Jefferson county, Pennsylvania.
Original Acquisition Price
March 2, 2018
Equity
Initial Cash Investment
Improvement
Summary
Through improvement initiatives such as: filling vacant pads, removing run down homes, converting utility payment from park paid to tenant paid, modest lot rent increases, and others, we were able to improve the park operations, increase NOI, and achieve a significant value increase. The financial results of these efforts are summarized below:
Debt
Non-Recourse
The new debt is non-recourse, agency debt.
Payout
Cash flow distribution
Investors received $462,729 from the refinancing event.
Capital
Cash out refinancing event
On September 5th, 2019 the first refinancing event occurred.
Refinancing
Event
Investor Distributions
The partnership received $462,729 from the refinancing event.
Capital
Summary
- $35,610 - Preferred distributions
- $462,729 - Cash out refinancing distribution
- $498,339 - Total distributions
- $284,937 - Initial equity investment
- $213,402 - Total return on capital
Timeframe
- 18 Months = 1.5 Years
ROI
- 49.93% - 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 property.
Refinance
Additional earn out loan available 12 months after refi (possible additional future return per refi loan).
Savings
Forced savings of approximately $942,500 due to the equity remaining in the property after the September 2019 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.
