The best way for recapitalize the value of MHP

Just come from the MF background and understand add value to MHP (increase NOI).

Most likely to update the management system to increase the lot rent and decrease the main expense.But after we increase the NOI,how do we recapitalize the value added?

In MF,we can refinance or resell to get the equity cash out, what is the choice for MHP?

Thank you

Vincent
I hadn’t seen a response to your post. But if you came from the MF world then the basic tenets of MHP investing is the same. Refi and or resell are your primary exit strategies to realize the untapped equity you have created. Other possible ideas may be to bring on latter stage investors or partners into the deal.
While the details and metrics may be different than MF, the same principles of investing apply.

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Thank you fro that.

I understand the principle should be almost the same, but the finance side should be different. Refin is not issue for multifamily at all, but for MHP the Refin might not be so easy and for the resell for other investors should be different from MF as well?

Thank you

Vincent
You are absolutely correct on that aspect. While I love the MHP business model much more than the MF model, one negative is liquidity. The is liquidity in getting financing as well as liquidity in product and buyers/sellers.
That is one aspect you will have to adjust in your investment model if you want to move from the MF to MHP investments. For example, I see people still modeling that they want to acquire a small MHP for 4.5% at 80 LTV. Unless you have great connections, good luck.

@howardhuang33 are safe modeling assumptions 6% and 75% LTV? I’m trying to model out a first time owner purchase and that was what I was going to assume for first bank financing.

Was wondering if 70% LTV is more common?

There are a few recent posts about financing - 5% plus/minus depending on amount, 75% LTV.