Seeking Note Guarantor & Capital Partner

We have a park we just put under contract in Hopkinsville KY. We believe it’s a good opportunity with some good upside, Some Specs on Park:

  • · 210 total spaces( 87 useable/rentable lots)
  • · 81 occupied (tenant occupied) handful consist of RV and some DW Homes
  • · 6 vacant homes
  • · City water/city sewer-flat rate charged to the tenants
  • · 64 acres good size lots
  • · Well Located, smaller market
  • · The vacant pads would need to be rezoned back to Res Manufactured Housing 3-4 months cost estimate $3500
  • · $175 lot rents, market rents are min $225+
  • · Located about 60 miles from Nashville TN in western KY
  • · We would be acquiring it at about 10 cap but could increase that cap rate to over 12+ and then some in relatively short period of time.
  • · Value add in increasing lot rents, submetering, bringing in new management , rezoning& filling the vacant lots.
  • · We have been working on this for about a year, we are seeking a partners who can provide capital and be a signor on bank note (seller financing might be a possibility if conventional cannot be obtained).

If you think it might be of interest shoot over a signed NDA attached and will get you the OM on it.

2 Likes

Hi SPSI, I may have interest in this deal. shot me an email at wpg3ut@gmail.com and we can get you an NDA.

Greetings, I can certainly be both an operational and money partner on a deal like this. Please circle back if as I would like to know where you’re at in the process. I will certainly sign an NDA. Email address is robert@dovedistributors.com thanks and good luck!

Saw this old post of yours and thought you might be interested in this deal.

Just got this park under contract and I am looking for a Capital Partner to invest in this exciting, HUGE VALUE ADD opportunity! It’s selling for $1.45M; an 11.5 CAP based on total income; a 29.6% Cash on Cash return; and it is seller financed!

However, the upside is even better! It is essentially a 50-space park now, with 12 vacant sites. But there are 50 more sites with the water, sewer and electric in place. And it includes a total of 40 acres with original plans for yet another 106 sites for a total of 206 sites!! The park’s potential value goes to $2.1M just by filling the 12 vacant sites. By bringing the next 50 sites on line, the value jumps to over $4M. And then to over $10M by completing and filling the other 106 sites.

On top of this huge financial upside, this is possibly the nicest park in Michigan. It was built circa 2000 and has been meticulously cared for, so there is little maintenance expense. It’s got vinyl homes, city water and sewer that are billed back to tenants and is in a “bedroom city” in the solid metro of Lansing-East Lansing.

The Lansing-East Lansing metro markers are:

  • size = 472,000
  • median home price = $157,666
  • 3 BR apartment rent = $1200/mo.
  • vacancy rate = 7.9%
  • State Capital of Michigan
  • Michigan State University and two other colleges
  • General Motors factory
  • Major employers are: State Government, Michigan St. University, General Motors, Sparrow Health System, Auto-Owners Insurance Group, Lansing Community College, Lansing School District, McLaren Health

There are currently 50 sites (26 POH’s, 12 TOH’s, 12 vacant lots). Average rents are $776 for POH’s and $350 for TOH’s. Annualized income and expenses as of 1/1/20 are: $283,857 and $116,519 respectively, yielding an NOI = $167,338. Included in the deal, but not in the NOI are 26 newer homes conservatively valued at $247,000.

As asset manager, my basic three-stage plan to add value to this park is to:

A) Fill the 12 vacant sites with homes from 21st Mortgage and make them tenant-owned homes. Increase the lot rent across all 50 sites to $400. Keep the 26 homes as rentals for five years to maximize depreciation on them, then turn them into tenant-owned homes. New Park Value @ 8 CAP = $2.1M

B) Complete the roads and pads on the next 50 sites. Add homes and make them tenant-owned. Increase rents to $450/mo. New Park Value @ 8 CAP = $4.725M

C) Do the infrastructure on the remaining 106 sites. Add homes and make them tenant-owned. Raise rents to $500/mo. New Park Value @ 8 CAP = $10.815M

In summary, this is an outstanding income opportunity with an excellent property in a strong metro! With relatively little work we will increase the park’s value over $600k (i.e., Plan A). We have essentially 50 more nearly free sites, and by getting them on line we will increase our investment’s value over $3M (i.e., Plan B). Plan C would take significantly more effort, but that reward is tantalizing to think about, too!

If you are interested in becoming the Capital Partner in this venture, I’m looking forward to hearing from you! Please email Gordon Graham, Landmark Assets, LLC at: gordoncgraham@gmail.com.

THANK YOU for your consideration!

Gordon