Mobile Home Park
Chicago, IL - MSA
In December 2017, the Keel Team and investment partners purchased a 112 lot mobile home park in Indiana near Chicago, IL.
Original Acquisition Price
December 15, 2017
Equity
Initial Cash Investment
Capital Call
On Month 23 Of Ownership
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
Collateral
Recourse debt for both partners.
Payout
Cash flow distribution
The first cash flow distribution was $98,500.
Capital
Cash out refinancing event
On March 25th, 2020 the first refinancing event occurred.
Refinancing
Event
Investor Distributions
Investors received $894,355.67 from the refinancing event.
Preferred Distributions
Paid Monthly
- January 2018: $3,500
- February 2018: $3,500
- March 2018: $3,500
- April 2018: $3,500
- May 2018: $3,500
- June 2018: $3,500
- August 2018: $3,500
- September 2018: $3,500
- October 2018: $3,500
- November 2018: $3,500
- December 2018: $3,500
- January 2019: $3,500
- February 2019: $3,500
- March 2019: $3,500
- April 2019: $3,500
- May 2019: $3,500
- June 2019: $3,500
- July 2019: $3,500
- August 2019: $3,500
- September 2019: $3,500
- October 2019: $3,500
-
November 2019: $3,500
(Additional $150K capital call) - December 2019: $4,500
- January 2020: $4,500
- February 2020: $4,500
- March 2020: $4,500
Total
Payout
Preferred Distributions
The partnership received $98,500.00 from the preferred distributions. The new debt is recourse.
Capital
Summary
- $98,500 - Preferred distributions
- $894,355.67 - Cash out refinancing distribution
- $992,855.67 - Total distributions
- $675,000 - Equity investment
- $317,855.67 - Total return on capital
Timeframe
- 27 Months = 2.25 Years
ROI
- 20.92% - Annualized cash on cash ROI
*Based on refinance appraisal values.
Future Potential ROI Opportunities
Infinite Returns
Infinite returns since all of the original equity investment has been returned, yet we still own the MHP.
Savings
Forced savings of approximately $440,000 due to the equity remaining in the property after the March 2020 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.
