Mobile Home Park
Western Iowa
In November 2019, the Keel Team and investment partners purchased an 80 lot mobile home park in western Iowa for $1.4 million.
Original Acquisition Price
November 7, 2019
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
Collateral
Recourse debt for both partners.
Payout
Cash flow distribution
On July 2020, the first cash flow distribution was $27,256.30.
Capital
Cash out refinancing event
On March 11th, 2022, the first refinancing event occurred.
Refinancing
Event
Preferred Distributions
The partnership received $1,205,640.32 from the refinancing event. The new debt is non-recourse, Fannie Mae agency debt.
Preferred Distributions Paid Monthly
- July 2020: $27,256.30
- October 2020: $11,853.78
- January 2021: $11,853.78
- April 2021: $12,125.35
- July 2021: $14,711.26
- October 2021: $14,519.40
- January 2022: $14,682.49
- March 2022: $11,812.51
- Total Preferred Distributions Paid to Investors: $118,814.87
Capital
Summary
- $118,814.87 - Preferred distributions
- $1,205,640.32 - Cash out refinancing distribution
- $1,324,455.19 - Total distributions
- $840,000.00 - Initial equity investment
- $484,455.19 - Total return on capital
Timeframe
- 28 Months = 2.3 Years
ROI
- 25.08% - Annualized cash on cash ROI
*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 return per refinance loan terms).
Savings
Forced savings of approximately $1,508,000 due to the equity remaining in the property after the March 2022 refinancing even.
*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.
