
Mobile Home Community in Southern GA
In August 2020, the Keel Team and investment partners purchased a 109 lot mobile home park in southern Georgia for $1.6 million. Through improvement initiatives such as: filling vacant pads, removing run down homes, paving roads and 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: $1,600,000 (August 28, 2020)
Equity: $655,000 initial cash investment from partners
Debt: Recourse debt for both general partners
Distributions Paid, Starting in Month 6:
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February 2021: $43,760.53
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May 2021: $21,880.24
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September 2021: $21,880.24
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December 2021: $23,967.95
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March 2022: $23,967.95
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March 2022 refinance cash out: $2,004,752.73
Cash Out Refinancing Event
Mar 11, 2022
Investors received $2,004,752.73 from the refinancing event.
The new debt is non-recourse, Fannie Mae agency debt.
Summary:
$135,456.91 Pro-Rata Distributions
$2,004,752.73 Cash out Refinancing Distribution
$2,140,209.64 Total Distributions
($655,000.00) Initial Equity Investment
$1,485,209.64 Total Return on Capital
Timeframe:
19 months = 1.5 years
ROI:
151.17% annualized cash on cash ROI
Future potential ROI opportunities:
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Infinite returns since all of the original equity investment has been returned, yet we still own the MHP
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Additional supplemental earn out loan available 12 months after refinance closing
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Forced savings of approximately $1,811,000 due to the equity remaining in the property after the March 2022 refinancing event
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Additional potential equity appreciation as the MHP continues to increase in value
Legal Disclosure: All investment offerings have a high degree of risk. Results may vary. Past performance is not a guarantee of future success.