About Us
Our admin team leader has 20+ yrs experience actually supervising the managers of RV/MH properties. Our General Managers have experience in hospitality and business planning. They are actively purchasing parcels that are operating with tired, seasoned, owners that would rather be elsewhere, typically finding off market deals.
What would draw someone to your parcel?
We are creatively making deals where our new economy has invested Billion$ and we are doing it as quietly as we can before others realize the opportunities. The old adage '“ location, location, location” applies. Studying the area of your prospective opportunity is crucial to your success. “If you buy it, They Won’t necessarily come to stay with you.” There are many AI tools to help you determine if the area of interest has economic opportunities.
Have you heard very conservative investors say, “it’s not how much you make, but how much you actually don’t loose over time?”
Our team initially would not be interested in parcels that experienced hazardous weather. Our research has allowed us to focus on buying the business (LLC) that owns the park. We also know that a parcel has contracted with FEMA or not. Knowing the park has FEMA experience, and the history of those invoices can not only reduce the risk of loss, an event could actually increase your NOI.
Example: 2021-2022 Properties we are buying right now charged $275/mo for a MH Pad, Resident paid for utilities, garbage fee, and lawn maintenance.
FEMA moves in their MH for displaced residents. Since they typically loose everything, they contract with the park to supply utilities, garbage removal, and exterior maintenance (mowing). FEMA paid $800/ month for 6 month terms for an RV pad, and $900/ month for a MH Pad. The park was available to receive units 2 weeks after the storm. Contract renewed 2x for 66 MH pads. Do the math.
Its important to retain the SAM listing by buying the business. Transfer of the LLC by a competant attorney will insure that you get all the assets of the business and none of the liabilities of the previous operators. The previous experiences and contracting with a business like “Cotton Strategic Infrastructure Solutions” who regularly contract with FEMA, insures that your parcels are high on the “Chosen list”.
Does your business plan offer lender partners a preferred interest payment and an equity kicker?
Consider a waterfall agreement if your asset has first year bonus depreciating assets. Passive investors not only want a fixed rate of return on the loan, they’ll want an equity position as well. Structuring depends on each lender investor. Some may want to stay in a period certain. Others, may want to exit after about a year, so you’ll need to have a strong deal that can refinance.
Our current deals are for 13 months. We are offered rates between 6.75% and 9.25%. Equity positions with the preferred interest payments are ranging 15% to 25% and you can adjust the equity percentage for those choosing equity only. That enables them to benefit by the long term capital gains treatment on the gain of their investment and they can 1031 into your next deal too! Exits are scheduled when the parcel/business is qualified for a DSCR placement.
Want to see what we are doing? Respond here, we’ll send you an NDA and schedule a Zoom with you.