I am the owner of a mobile home community, Taber’s Place, LTD, located in Brewton Alabama. Phase one is complete and we are seeking to expand into our 2nd phase with 9 more units and a self-storage building. Can anyone provide contact information for lenders that specialize in this area? I'm just not happy with the 7%+ rate quotes we are receiving from local lenders.
For any potential lenders that may be reading this blog:
5926 Old Highway 31
Brewton, AL 36426
Background – Partners
Jeffrey Morris retired from the US Navy in December 2013 after 23 years of service as a naval aviator and accepted a position with Georgia Pacific in his home town of Brewton, AL in January 2014. He holds a MBA in marketing from Liberty University and a BS in business administration, financial services, from the University of North Florida. Further details on his background can be found on his LinkedIn profile at https://www.linkedin.com/pub/jeffrey-morris/67/a83/36a
Linda McCall is a successful businesswoman who owns and operates McCall’s Auto Sales LLC in Brewton, AL. The business was established in 1995 and continues to thrive in its market segment. She has also been involved in real estate and rental property transactions over the past fifteen years. She has owned more than 15 rental homes throughout the state of Alabama and bought and sold multiple homes during that time. She has narrowed her purchase and development area to Escambia County Alabama in order to limit travel requirements and better meet the needs of the local community.
Background - Business
Taber’s Place was officially formed as a partnership between Jeffrey Morris and his mother, Linda McCall in January 2015 in the state of Alabama, county of Escambia, and city of Brewton. 32.9 acres of land was purchased in August 2014 in preparation of the new community and mini-storage development. An analysis was conducted of the local housing rental market and it was determined that a severe deficiency exists for younger families who fall in the lower middle class bracket ($32,500-$60,000 annually). In order to meet the needs of this local market segment and maintain an acceptable ROI, it was determined that development of a mobile home community and accompanying mini-storage units would outperform apartments or townhomes in the short term (10 years). Lots were developed at a minimum size of 1/3 acre each to allow future development of duplexes should market conditions shift favorably in that direction.
In January 2015, sixteen acres were sold to fund initial development of the remaining 16.9 acres. Ground was broken on the first 4 acres, dirt work commenced to build a crushed asphalt access road and storm drainage, water and electric services were installed, and septic systems were engineered and constructed for the first eight homes. The first 3 bedroom, 2 bathroom, 1160 square feet, fully refurbished mobile home was purchased in September 2015 and rented to a credit worthy tenant within 24 hours of initial posting. Subsequently, a waiting list of 5 families, all with acceptable credit checks, was established within the first week of community marketing. With $95,000 of personal funds invested and confirmation that the market analysis was correct, Taber’s Place sought funding for four additional homes and completion of phase one. A local bank extended a business loan for $120,000 and four more refurbished homes were purchased by December 2015. All units rented, sight unseen, several weeks prior to each delivery. The waiting list of eligible tenants continued to grow, so the decision was made to purchase two more units in February and March of 2016 utilizing personal funds. These units rented in the same manner as the previous four and a current waiting list is still in place with 7 families anxiously awaiting an opportunity to secure a spot at Taber’s Place.