MHPI V, LLC
WHO WE ARE
The principals of Elevation Capital, and their affiliates, have extensive experience in the ownership and operation of mobile home parks in the United States. They have invested in over one hundred sixty (160) mobile home parks and brokered over twenty-five (25) other mobile home park transactions over the last twenty (20) years, making them uniquely situated to quickly assess investments and determine their risks, possible re-marketing plans, and future growth potential. They have previously organized and funded ten other companies with the same business plan as the Company. The principals have authored books on mobile home parks, developed the largest and most respected websites dedicated to the mobile home and RV park industries, and conducted mobile home park boot camps. They have long established relationships with key market participants such as banks, insurance companies, and are able to source attractive investments through their listing websites. They have well established processes for handling all aspects of mobile home property management including acquisition, development, re-marketing, leasing, disposition, accounting, and legal.
In addition, the Key Principals are backed by a strong extended team; Dave Reynolds is the owner and CEO of the 450+ employee company RV Horizons, Inc. that provides property management for Funds. The Manager works with RV Horizons, Inc. to enact turn-around plans and perform day-to-day operation of properties acquired by the Funds. RV Horizons is headquartered in Cedaredge Colorado, but also has employees Montrose, Colorado and Niles, Michigan (along with onsite managers and field supervisors across the country). The team at RV Horizons, Inc. includes corporate office staff, district managers and rehab crews who work with onsite managers.
OUR EXPERIENCE & TRACK RECORD
The Company is formed by principals who, with their affiliates, collectively have over sixty (60) years of experience investing in mobile home parks and other real estate. The Company will fully employ its principals’ investment strategy, asset management practices, track record and relationships with lending institutions, professional network, operating platform, and experienced staff in sourcing investments and seeking to minimize investment risk and maximize cash on cash returns.
OUR INVESTMENT CRITERIA & STRATEGY
The Company’s primary strategy is to acquire, add value to, and reposition under-valued, under-managed, under-performing, improperly capitalized, income-generating mobile home properties in the United States. Target communities are primarily either in larger markets or smaller growth markets with diversified employment, with spaces that are medium sized and larger, and with homes in average to good condition. The purchase price for parks is expected to be in the Two Hundred Thousand ($200,000) Dollars to Three Million Five Hundred Thousand ($3,500,000) Dollars range.
ABOUT THE FUND
The primary strategy is to acquire, add value, and reposition mobile home parks that are currently generating income yet are under-valued, under-managed, under-performing, and/or improperly capitalized. Our goal is for each tenant to own their home, while the Fund owns and maintains the underlying land and infrastructure such as roads, utilities, and amenitites (if any). This special owner-tenant relationship, and the fact that mobile homes aren’t actually very mobile (due to the high cost and risk to move a home), leads to tenant longevity and other unique investment advantages over many other asset classes.
There is a huge and growing demand for affordable housing, yet traditional site-built homes and apartments can’t meet the need. At the same time, there is a limited supply of new mobile home parks and a high barrier-to-entry for new mobile home park development.
MHPI V, LLC was formed to acquire mobile home parks throughout the U.S. The company will indirectly invest through Affordable Housing Community Fund 6, LLC (AHCF 6) in a portfolio of assets consisting of sixty mobile home parks as well as other assets.
The company may also invest in other assets, including but not limited to real estate assets or securities, in which case the company’s primary strategy will be to acquire, add value to, and reposition under-valued, under-managed, under-performing, improperly capitalized, income-generating properties in the United States. Target communities will be primarily either in larger markets or smaller growth markets with diversified employment, with spaces that are medium sized and larger and with homes in average to good condition. The purchase price for such parks is expected to be in the Two Hundred Thousand Dollar ($200,000) to Three Million Five Hundred Thousand Dollar ($3,500,000) range.
The company’s goal is to purchase communities that will produce initial cash on cash returns of 12% to 15% in the first year, with an increase of 3% to 5% per year thereafter. Within 5 to 10 years of each acquisition, the company expects to either sell the property or refinance and hold the property, producing a blended overall cash on cash return of at least 20% per year to the investor over a likely 5 to 10 year period.
The company will engage onsite managers to manage each of the company’s portfolio properties, for which such managers will receive market-based compensation from the company. The company may also engage third parties to provide the services of leasing and sales agents or other services as necessary, the costs of which will be paid by the company. All fees earned by the Managers, including but not limited to the Acquisition Fees, wiil be in addition to and not as a part of the Managers’ Class A Membership in the company.
The Key Principals have a an extensive track record of success in the mobile home park industry, and over 60 years of combined real estate investing experience. They have long-established relationships with key market participants such as mobile home park lenders, insurance companies, real estate agents and brokers, and have steady deal flow from various sources:
✓ Attendees of bootcamps taught by one, or more, of the Key Principals
✓ Key relationships in the Brokerage community
✓ Banks and other lenders
✓ Outbound calls and other direct marketing initiatives