In July 2020, the Keel Team and investment partners purchased a 90 lot mobile home park in northeast Nebraska for $2 million.  Through improvement initiatives such as: filling vacant pads, removing run down homes, filling potholes and repairing off-street parking pads, 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:  

 

Original acquisition price: $2,000,000 (July 07, 2020)

 

Equity: $600,000 initial cash investment from partners

Debt: Recourse debt for both general partners

 

Distributions Paid, Starting in Month 6:

 

• January 2021: $34,816.98

• April 2021: $17,408.50

• July 2021: $17,408.50

• July 2021: $50,000.00 

• October 2021: $25,860.48

• January 2022: $25,860.48

• April 2022: $25,860.46 

​

Total Distributions Paid to Investors: $197,215.40
 

Cash Out Refinancing Event

May 17, 2022

 

Investors received $1,610,138.35 from the refinancing event.

 

The new debt is non-recourse, Fannie Mae agency debt.

 

Summary: 

 $197,215.40 Investor Distributions

$1,610,138.35 Cash out Refinancing Distribution

$1,807,353.75 Total Distributions

($600,000.00) Initial Equity Investment

$1,207,353.75 Total Return on Capital

 

Timeframe:

23 months = 1.9 years

 

ROI:

105% annualized cash on cash ROI 

 

​Future potential ROI opportunities:

• Infinite returns since all of the original equity investment has been returned, yet we still own the MHP

• Additional supplemental earn out loan available 12 months after refinance closing

• Forced savings of approximately $1,825,000 due to the equity remaining in the property after the May 2022 refinancing event (based on the $5,100,000 appraised value from the refinance)

• Additional potential equity appreciation as the MHP continues to increase in value