I’m getting excited for MHM6 and can’t wait to see everyone and meet a bunch of new friends too! Thought I’d give the group a quick heads up on some of the things that have happened and will happen at an event like this.
Several years ago I was a speaker at MHM2 and needed to raise $1M in private money on a $3M cash flow deal that I had under contract to purchase. The “readers digest version” goes like this: 315 unit waterfront community with positive cash flow after debt service from day one, 50 vacant lots, a boat ramp, 300 ft. salt water fishing pier, 65 acres, 2 pools, brick clubhouse, bocci courts, shuffle board, and 7 vacant acres of commercial road frontage. Three years later I’m happy to say this park is worth a conservative $8M (and when I say conservative I mean I would NOT sell it if offered $8M cash today). I remember Ernest Tew looking me square in the eye while we were standing on the fishing pier and saying, “Karl, this is a blue chip property.” He was right.
So now its time for MHM6 and this time I need to raise $4M in private money on a $14M cash flow deal that is also currently under contract to purchase. This project appears even better then the last - 752 developed lots, cash flows the day we close with a net (EBITDA) of $1.2M, priced at just shy of a 9 cap on performing lots only, leaving 250+ lots to fill as upside potential. With our proven conservative infill program this project is forecasted to be worth $21.4M in 4 years or less, and at full occupancy less 5% vacancy it will be worth $23M+. The first year infill program is already liquid in cash and ready to go. This is a