Seeking Equity Partners: New MHP development


#1

I am a Florida MHP Developer looking for Equity Partners as we begin the process of developing a 13 acre site that will consist of 85 lot sites, private community club house and pool. This new community will contain 85 houses for sale on leased ground creating a wonderful opportunity for equity partners to participate in net sales income as well as long-term ownership of an income producing investment.

Projected returns on this project are forecasted to be a cash-on-cash return of 120% over a 2-year period. This affordable housing property is located 20 miles North of Daytona Beach. Initial equity raise is $1,000,000 consisting of 10 shares of $100,000.

For more information on this exciting project, please email Drew at dbpsu25@gmail.com


#2

Hi,
Very interesting. Three questions most people here would be interested in:
What is the projected cost per pad to develop (without land)?
What is the projected cost per home to fill lots?
What are the projected lot rents?

Thank you!


#3

Thank you for your email. Please find the responses to your questions below:

1.) Projected cost per pad site to develop. ($30,000/lot)
2.) Projected cost per home to fill lots. ($588/lot)
3.) Projected lot rents ($150-1 bedroom),($200-2 bedroom), ($225-3 bedroom).
*Please note that we have positioned this as an affordable housing development as we are looking to keep the lot rents on the lower side. The Flagler county market can accommodate lot rents in excess of $500 as we can potentially consider incorporating a higher lot rent. If you want me to forward you a detailed package, please let me know as I can email you. Thank you for your interest. Drew B.


#4

@dbpsu25 Not an expert on MHPs, and certainly not an expert at development, but wouldn’t this cost be too high to justify the project? At $30,000/lot and then having to fill it, and with the lot rents being so low, the cap rate on this would be minuscule. Am I missing something?


#5

Thank you for your contribution and feedback. At a $30,000/lot to develop and then the cost to fill, the cash-on-cash return is significant. As described initially, if we increase the lot rents to $500, (which we will most likely do), the cap rate and the returns become proportionately that much more attractive. Let me know if you need more information as I am more than happy to share the pro-forma with you. Thank you for your message.


#6

@dbpsu25 Ahh, that was the part I was missing. I thought the lot and home rents were $500, not just lot rent. That rent number supports the development cost pretty well. I’d love to see the proforma as I am in the market to develop a park myself and I’m trying to make the numbers work. PM me your email or the data itself if you don’t mind. Thanks!

Just wondering, do you plan to do the development all at once, or in phases. Also what’s your strategy to fill the park with homes?


#7

I am more thank happy to send you the investor package. Just provide me your email. thank you.


#8

I’m interested, can you send me your investor package?

laterralau@gmail.com

Thanks!