our investment programs
Acquisitions
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. Ususally, 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.
loans
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.
preferred
equity
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.