Investments

Size- We buy manufactured housing communities of all shapes and from sizes of $6 million in value to sky’s-the-limit. We purchase single properties and large, multi-state portfolios.

Quality- Our sweet spot is two to four star communities. (We don’t add value to five stars and we can’t improve one stars to our standards.) We view vacant sites, failing infrastructure, title defects, flood zones and other challenges as value-add opportunities. .

Development- While we don’t yet do ground-up development of new communities, we welcome opporuntities to create new housing with significant re-developments of existing communities. This may include adding new housing sites within existing communities, acquiring adjacent land for expansion, filling vacant sites with new homes, rebuilding failing infrastructure, and other value-added redevelopment.

Location- We developed an algorithm which evaluates every Zip Code for its investment prospects. (Almost AI.) That analysis allows us to invest across the United States. We focus on growing populations of greater than 100,000, diverse economic drivers, and relatively high home prices.

Homes- We already own communities with more than 50% community owned homes. We are fine with them.

Consideration- We pay all cash, with no financing contingency.

Tax Planning- We have innovative structuring alternatives to help you postpone and reduce your capital gains tax.

Timing- Have a fire drill? We can put it out. Usually, though, we ask for 40 days for diligence and 30 days to close.

Management- We often retain on-site operating teams. We hope to retain regional management teams when buying portfolios. When everyone is retiring, we bring on colleagues from our property management partners.

Our flexible loan structures and manufactured housing community expertise allows us to tailor loans to your needs and assures no-surprise closings. Your loan is funded with discretionary capital, kept on our balance sheets, and we direct the servicing.

Structures- We are primarily bridge lenders on transitional, value-added business plans. Loan structures include mezzanine loans, B-notes and senior loans.

Term- Terms range from two to seven years depending on your needs.

Leverage- Typically, 60% to 75% loan to value. Debt yields are also an important criteria.

Amortization- Nah.

Recourse- Only the usual bad person provisions.

Loan size- Mezzanine loans can start at $6 million. Senior loans start at $30 million, including on a portfolio basis. There’s effectively no upper limit. Portfolio lending facilities could accept individual assets as small as $1 million.

Interest- Almost all are floating-rate. Caps will be needed – we never want to own your collateral! Spreads depend on the usual and are very competitive with debt funds, life companies and CMBS. If any bank were still lending non-recourse, we would beat their pricing.

Prepayment- Usually allowed without penalty after a year or so.

Relationship- lending We foster long-term relationships, across client’s portfolios and through many loan originations and repayments. We often work with mortgage brokers.

Timing- Within 48 hours, you will know if we have interest (another bad pun). For approvals and closing, we can hurry, and usually take 40 days from inquiry to funding.

Location- We will lend anywhere we would buy, and may be even more generous with those algorithms.

Quality- Three star (maybe two star) to five star. As manufactured housing community owners, we’ve lived most of the unusual challenges and can address those in loan underwriting.

We can structure highly customized preferred equity. To meet minimum investment sizes, preferred equity is most common, (ha!), on portfolios. Our underwriting criteria are similar to our lending criteria. Returns may include accrued interest and equity participation to meet your project’s needs.