Mobile Home Park in the Chicago, IL MSA:

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In December 2017, the Keel Team and investment partners purchased a 112 lot mobile home park in Indiana near Chicago, IL.  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:  

 

Original acquisition: $1,100,000 (December 15, 2017)

 

Equity: $525,000 initial cash investment from partners

Additional $150,000 capital call at month 23 of ownership

 

Debt: Recourse debt for both general partners

 

8% 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

• July 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 $150,000 capital call)

• December 2019: $4,500

• January 2020: $4,500

• February 2020: $4,500

• March 2020: $4,500

 

Total Preferred Distributions Paid to Investors: $98,500

 

Cash Out Refinancing Event

March 25, 2020

 

Investors received $894,355.67 from the refinancing event.

 

The new debt is recourse.

 

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 

 

​Future potential ROI opportunities:

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

• Forced savings of approximately $440,000 due to the equity remaining in the property after the March 2020 refinancing event

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