Mobile Home Park Investing: The Keel Team Approach

Introduction

As mentioned numerous times in this blog, mobile home park investing stands out as a unique and often underappreciated opportunity. Among those leading the charge in transforming this niche market is the Keel Team, a dynamic group known for its savvy investment strategies and impressive track record of delivering substantial returns to its investors. Managing a portfolio of over 43 mobile home parks across 10 different states, with more than 30 full cycle deals – having returned all investor capital and some – the Keel Team has distributed over $30 million to its limited partner investors since 2020, by expertly syndicating individual mobile home parks across the United States.

Strategic Deal Sourcing

The Keel Team’s approach to sourcing deals is both meticulous and effective. They leverage cold calling to unearth off-market, value-add opportunities direct to seller, focusing primarily on mom-and-pop-owned mobile home parks. With a refined list of over 10,000 mobile home parks that fit their specific criteria, they’ve mastered the art of building relationships with owners. This groundwork often results in acquiring properties at prices below retail value, setting the stage for significant value enhancement.

Securing Financing and Raising Capital

Upon identifying a promising mobile home park, the Keel Team secures the property through local banks and credit unions, aiming for about 75% leverage. The general partners usually sign recourse on the loan, which no investor is required to do. The remaining 25% is usually raised from limited partner investors, syndicating the mobile home parks to pool resources and share in the potential rewards. This initial phase is crucial, laying the financial foundation for the subsequent value-increasing strategies.

At Keel Team Mobile Home Park Investments, we usually invest using a combination of different methods with our mobile home park investments, typically involving the Buying, Renovating, Holding Long-Term, and Refinancing our assets with Agency Debt (Fannie Mae/Freddie Mac). We only ever sell our properties if we lose trust in the market or if we are presented with a Godfather offer, as the famous investor Sam Zell would say. Check out our eBook on the “Top 20 Things I’ve Learned from Investing in Mobile Home Parks” by Andrew Keel for more potentially valuable insights!

Value Enhancement and Refinancing Mobile Home Park Investments

With the mobile home park under their belt, the Keel Team shifts focus to increasing its value. Strategies such as boosting occupancy, billing back utilities, raising lot rents, and addressing any deferred maintenance are key. These efforts are not only aimed at enhancing the property’s immediate financial performance but also aligning with the stringent requirements of agency debt lenders like Fannie Mae and Freddie Mac, known for their favorable financing terms.

The ultimate goal is to refinance the properties, securing long-term, agency debt at roughly 60% leverage. This step is pivotal, as it allows investors to remain in the deal, benefiting from the “infinite return” model while the Keel Team looks to refinance again in 10 or 12 years, adhering to a long-term hold strategy.

Selective Selling Strategy

While the Keel Team’s primary focus is on long-term value and securing returns of at least 15% for their investors, they remain pragmatic – selling mobile home parks only under specific circumstances. This may occur when confidence in the market wanes or if a major employer in the area withdraws, potentially impacting the mobile home park’s stability and profitability. Such strategic decision-making ensures that investments are not only lucrative but also resilient.

Conclusion to Mobile Home Park Investing: Keel Team Approach

The Keel Team’s approach to mobile home park investing showcases a blend of strategic acquisition, value-driven enhancements, and savvy financial structuring. By focusing on long-term growth and stability, and only selling when absolutely necessary, they’ve not only championed the potential of mobile home parks as an investment vehicle but also delivered impressive returns to their investors, never below 15% annual cash-on-cash returns. As the landscape of real estate investing evolves, the Keel Team remains at the forefront, redefining what’s possible in the mobile home park market.

At Keel Team Mobile Home Park Investments, we’re dedicated to enhancing communities while potentially maximizing investor returns. Our focus is on improving residents’ lives while delivering strong profits to our partners. Get in touch using the contact details below to learn more about our investment approach and strategy.

Disclaimer:

The information provided is for informational purposes only and should not be considered investment advice, nor a guarantee of any kind. There are no guarantees of profitability, and all investment decisions should be made based on individual research and consultation with registered financial and legal professionals. We are not registered financial or legal professionals and do not provide personalized investment recommendations.