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:

 

• February 2021: $43,760.53

• May 2021: $21,880.24

• September 2021: $21,880.24

• December 2021: $23,967.95

• March 2022: $23,967.95 

• March 2022 refinance cash out: $2,004,752.73

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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:

• 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 $1,811,000 due to the equity remaining in the property after the March 2022 refinancing event

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

 

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