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Frequently Asked Questions
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Keel Team is targeting C-grade all-age mobile home communities throughout the landlord friendly states primarily in the central United States. We are looking for mobile home parks with 50 or more lots and public utilities. Our ideal purchase is a cash-flowing mobile home park, within an MSA, that is around 70% occupied so we can instantly add value through infilling mobile homes on the vacant lots.
We also really love parks that include water/ sewer and trash in the rent before we buy it because this easy value-add component of installing sub meters and billing back the tenants for their usage results in conserving water and it also reduces our expenses.
Andrew Keel got his start in real estate investing back in 2014 through flipping single family houses around central Florida. He got into manufactured housing as a “Lonnie dealer” in 2015, flipping individual mobile home trailers around central Florida and then meeting and getting mentored by a mobile home park owner in Ocala, FL.
He got his first MHP deal done through a JV structure with a passive investor he met at the MHU boot camp in Orlando FL. His first MHP deal was a 67-lot park in Edwardsville, IL and we still own it to this day! We closed on it June 30, 2017 and this is a case study on keelteam.com. We refinanced into long term debt through Fannie Mae back in 2019. (Check out the details here: https://www.keelteam.com/case-study)
Andrew Keel has been syndicating MHP deals since 2017 and he has been in the real estate business since 2015. Andrew started flipping and wholesaling single family houses around central Florida while working a full-time W2 job in corporate America. Read Andrew’s Story Here. He got into MHP’s through doing “LONNIE DEALS” where he would buy a mobile home in an existing park and fix it up and then he would sell it on contract to an end buyer that would also pay lot rent to the park. Andrew did 19 of these deals which fully offset his monthly expenses and allowed him to drop the single-family flipping business in 2016 and go into MHP investing full time.
Jon Carcone at 4 Brothers Commercial started in single family real estate investing as well. He grew a HUGE flipping and wholesaling operation based out of the Washington DC/ Arlington, Virginia area. He scaled this business for 9 years (started it in 2009) and then started the 4 Brothers commercial wing in 2018, and subsequently met Andrew Keel shortly thereafter, where they started partnering on all the commercial deals together.
We are chasing yield and cash flow so we aim for secondary markets throughout the Midwest. We look for a steady population – not huge growth markets but not shrinking either. Markets like Des Moines, Iowa or Sioux falls, South Dakota and Indianapolis, Indiana are ideal for our model. There are many mom & pop owned properties in these states.
It all comes down to the income at the end of the day- how can we squeeze more dollars out of the asset compared to the prior owners? We ask ourselves this on every due diligence trip. If the property is a 6 cap property, every recurring monthly dollar of NOI (income) we can create adds $200 to the value of the property. The ‘commercial real estate math’ behind this looks like this:
$1 x 12 months = $12 in Net operating income/ .06 (6 cap value)= $200 in added value to the property when we sell or refinance.
These are some of the value add improvements we make:
- Billing back for water/ sewer and trash (many mom & pop owned MHP’s include these services with the monthly lot rent that each tenant pays)
- Raising rents after capital improvements that make the property a better and safer place to live
- Filling vacant lots/ increasing occupancy with new and used homes that we bring in
- Rehabbing vacant mobile homes on the property already
- Implementing a cable/ internet program for the property (this is a win-win as the tenants get a reduced rate due to the bulk pricing and the park owner gets a cut/ commission of those tenants that sign up)
- Installing LED street lights vs halogen power sucking lights that many MHP’s still have (also creates a more green, environmentally friendly commercial property)
- Pave the roads (this is a resident favorite)
- Trim trees and take care of other deferred maintenance left by the prior owners
- Fix water leaks
- Install new signage and fencing
- New website and online profiles with google for more visibility (SEO and ‘google my business’ profiles)
- Adding storage units/ shed rentals and carport rentals for additional income and a cleaner look
- Cutting unnecessary expenses like full time on-site managers making $65k+/ year
We carry loss of business income insurance on all of our mobile home park acquisitions so we will likely still be able to cover our liabilities. More than likely in this type of disaster scenario we would be ok but we would definitely be dragged down by the extra operational focus and time on site needed to recover from such an event. However, the monetary risk would be somewhat hedged due to our insurance.
Passive Investor Testimonials
Travis E.
I've been investing with the Keel Team for a while now, and they are my go-to real estate investing company. I grew up around the MHP, Self-Storage, Multi-Family environment and my family invested heavily in this space. I knew this was a space that I wanted to invest in long-term, but with my current business interests, direct involvement in that space became too much to manage on my own. Investing with the Keel Team is easy and the results have been unmatched. I receive all of the information I need to quickly and efficiently vet a deal, and once the decision is made to move forward, the documents are presented in a clear and concise manner to get up and going. Distributions and tax documents are provided on a consistent basis and I couldn't be happier. If I have the funds to invest, the Keel Team is the first location I look to invest, and I look forward to continuing that relationship. I highly recommend you do the same.
Joe H.
I would recommend that any investor consider Keel Team as part of a diversified portfolio as Andrew and team produce consistent income as well as growth. I have been with Andrew several years as he is honest explaining all risks and rewards. I was considering purchasing a mobile home park as a solo investor and realized after attending the seminar that learning and implementing all the procedures would have been too much while running a full time business. You are getting all of Andrew's experience and expertise avoiding the learning curve on your own. So Andrew is a good fit for any investor. We will continue to add investment with Andrew as this will contribute to our retirement income.
Leon H.
Recently finished my first deal with the Keel Team, they really knocked the ball out of the park! The team started the project when covid-19 was raging spread. Despite this challenging operating environment, they delivered results ahead of every milestone while communicated with limited partners with quarterly reports and transparent operational documents. The project was not only completed a year ahead of schedule, but the higher asset quality also brought many optionality's at exit refi. The deal ended with a refi rate that’s about 200 bps below expectation while keeping the asset with a low-risk profile. I am thankful for the Keel team’s professionalism and trustworthiness. I am partnering with them with more deals in the future as I have not experienced a more hands-off investment than this.
Joel M.
Andrew and his team have executed the business plan on the mobile home park we invested in beautifully! Not only are they doing what they outlined in the plan, they are doing it ahead of the schedule! Needless to say I am very pleased, especially as a passive investor. It's very gratifying to get results like this and be kept in the loop along the way. The communication has been timely and accurate and I continue to be impressed with the professionalism of the Keel Team.
Isaac B.
There aren't many operators who say what they do and do what they say, but Andrew and the excellent Keel Team are the exception. They operate with absolute transparency and honesty, hit proforma projections, and generally exceed expectations. In this investing climate, finding a group like the Keel Team is a lighthouse in the stormy harbor.
General Testimonials
Alan Bush
It has been a pleasure working with the Keel Team/4brothers group/s! We are now on our 4th facility loan and it has been an interesting opportunity. When they initially contacted us, it was a totally cold call. Reliance State Bank considers ourselves a Community Bank, with virtually all of our customers located within our marketing area. The initial financing request was for facilities within our trade area, but ownership entities were not.
All members of this group have been fantastic to work with. From the start, their financing requests include very detailed info about the existing ownership entities, cash flow studies (past and present), community details, complete financials and future plans to implement efficiencies going forward. They provide historical information about their existing ownership locations.
They are very responsive and willing to provide timely info needed. One of their key people in the process is Mariska Jackson, who works from South Africa. She is an amazing young lady to work with, as professional and nice a person as you will find anywhere. On our recent project, we have been working more with Wes Coetzee, equally impressive.
Darryl Jorgenson
I am a business lender with a regional bank and have originated loans for the Keel Team and their affiliates on multiple occasions. The Keel Team members are professional and very knowledgeable about the real estate industry. Inevitably many challenges will arise throughout the loan process, the Keel Team helped to resolve every challenge efficiently and quickly. It was a pleasure working with the entire team and I hope to work with the Keel Team many more times in the future.
Tom Wallace
Our experience working with Andrew Keel, his team, and the 4 Brothers team was excellent. Working directly with Andrew and his team solidified the loan terms to which we would mutually agree. Thereafter, his team, and the 4 Brothers team, were very helpful and communicative to provide the information we needed for underwriting and to bring the deal to a successful closing. The working relationship was very good, and we look forward to more opportunities to work with the Keel team and 4 Brothers team in the future.
Ram Levinger
The Keel Team and I have closed between $10-$20 million in the Mobile Home Park and Self-Storage industries over the last six years. They have repeatedly demonstrated professionalism and expertise in their field by consistently providing pertinent information in a timely manner. Their understanding and communication of their own transaction history, as it relates to historical metrics and market data, makes it easy to determine loan eligibility and lender interest. They have always paid their loans on time and have been extremely responsive borrowers. I look forward to working with them more in the future.
Michael Janabi
I’ve enjoyed working with Andrew and Keel Team. He has proven to operate with integrity and is communicative, flexible, and proactive. Based on my experience, I will continue to recommend, advocate for and support the Keel Team. Congrats on your accomplishments and wish you greater success.
