Mobile Home Park Investment Fund James E. Glasgow | Court Street Partners, LLC

Earn 12% to 20% + Returns on Your Savings or IRA A 70-Year Old Investment is Back

A Senior Living Mobile Home Park Development Project                                                                             A rare opportunity to participate in a new development. The first Senior living Mobile Home Park in San Antonio and the first park to be built in a decade or more.

Project Scope The Project is a new development of a Class “A” Senior Living Mobile Home Park (MHP) in the San Antonio, Texas area. The MHP will consist of 150 to 200 spaces. May require more than one slide

Development will be in 3-Phases Phase one: will be 50 spaces and contain the park’s basic infrastructure of office space, signage, and residence common area amenities. Phase 2 and 3: will contain 50 spaces each to be constructed as the park fills up the earlier phase. 

Project Scope Expansion beyond 150 spaces will depend on availability of land, financing and demand. Based on a similar MHP that expanded in the last 3-years that added 278 spaces having leased them up in less than 36 months. We estimate a total project time line from start to lease up of 24-40 months. The total time line from construction start to sale of the project is estimate at 5-7 years

Projected Time Line Locate property, design, start construction 6 months from funding approvals. Construction 90 to 120 days Phase-1. Phase-2 & Phase-3 will take 3-4 months each. Lease up 6-9 months for Phase-1, total project lease up 24-40 months.

Projected Lot Rents: Using information from similar parks in the area. Lot rents ranged from $375 a month to $550 a month. The high end of the scale was for a mobile home rental pad site for a single or double wide home, with an 8’ X 8’ storage shed, two or three parking spaces, in a well maintained park with amenities. Lot rents will start at $400 and $450 a month, Increasing to the higher end of the scale once we are at 90% occupancy.

Pro-Forma Income Statement completed project 80% of revenue will be from Mobile Home Space rentals 10% of revenue will be from Financing homes for buyers. 30 homes of the 150 homes will be park financed for buyers, for simplicity only the income spread between payments is shown in the pro-forma. 10% of revenue will be from other sources, such as RV storage rental, club house rental, MH sales.

Proforma Projections: Projected Income: The park revenue when leased up will be $830,400 per year, net revenue will be $ 572,000.  At end of year 5 the projected income is estimated at $1,004,000 and net revenue of $702,000 Projected Cost: The Park will cost $5,000,000 to develop, of which 60-70% will be financed. Including carrying cost to lease up.

Pro-Forma Income Statement completed project Month Year Year 5* Total Revenue    $69,200 $830,400 $1,004,400 Total Operating Expenses 31% $21,500 $258,000 $302,000 Net Income $47,670 $572,400 $702,400 Total Park Cash Flow   39%   $26,700 $320,400 $450,400

Break Even Break-even is at 85 spaces rented and 17 homes sold and financed. Break-even as a percentage is at 57% occupancy of the total of 150 spaces. All figures are estimates, subject to changes as needed.

Negative Cash Flow Funds: From inception to break- even at 85 spaces rented is estimated to occur at 24 to 30 months into the project.   This time to lease up to break-even will require a reserve for negative cash flow.

The Park’s value when completed and leased up will be. $8,430,000 at a 6.5% cap rate at lease up. $6,850,000 at an 8% cap rate at lease up. $10,800,000 at 6.5% Cap Rate after Rent Increases are in place. $8,775,000 at an 8% Cap Rate after Rent Increases are in place.

Projected Returns:  The MHP’s returns to investors on a per year bases when the property is leased up should be 12%-14% per year cash on cash. The MHP’s total returns (annualized) when the Park is completed and leased up, then sold, based on a 5-year projected time frame for the investment is estimated at: 15% - 44% at an 6.5% cap rate 15% - 30% at an 8% cap rate The percentage returns would adjust downward if the time to a sale is at 6 or 7 years instead of 5 years.  (A $100,000 equity investment could conceivably grow over five years to be worth $175,000 to $250,000 (income received and property net value combined). 

Capitalization: New MHP Development of 150 spaces in 3-phases Total Project Cost: $5,000,000 Equity Investment & Operating Reserves: $2,000,000 Total Financing: HUD guaranteed bank loan needed:  $3,000,000

Calling all interested parties…. You can participate… I hope I have peaked your interest. We would love to have you as an Investor.    If You have an interest in participating in this Mobile Home Park investment opportunity please contact me. James Glasgow   jeglasgow@yahoo.com 210-413-7230 www.towardswealth.com

James E. Glasgow 35 years Real Estate investing experience. Real Estate experience in residential, commercial, owner finance, remodeling, construction and business management. Owner Gem Rentals LLC Real Estate Book Author Real Estate Instructor 40 years business management experience.